A shortage of skilled workers is reaching crisis point for businesses.

Research by Lloyds TSB Commercial shows the skills gap has reached record levels among businesses in the South-East as more firms than ever before have had recruitment plans thwarted. The figures come from the bank's Commercial Business in Britain survey.

Half the country's businesses have experienced difficulties finding skilled workers in the last six months, the highest-ever proportion since the survey began. This compares with one in five in the early Nineties.

In the South-East, 50 per cent of firms reported difficulty recruiting skilled staff and 28 per cent said even attracting unskilled staff had been a problem in the last six months.

Area director for Lloyds TSB Commercial Richard Irwinski said: "It's already a problem child and the domestic skills gap could grow up to be the young offender that holds success and failure for UK plc in the balance.

"The yawning skills gap is turning into a hazardous abyss across all sectors.

"In terms of recruiting unskilled staff, similar trends are also emerging. Local labour supply just cannot match demand and there is a very real danger that this could hamper growth in the future.

"What may seem surprising is that, despite the problems firms have encountered in recruiting skilled labour, they have not increased the wages to attract key people.

"Many firms have been unable to pay higher wages to attract skilled staff because of declining profits - the result of fierce competition and strong downward price pressures, especially in manufacturing and retail."

IT and business services, manufacturing, transport and communications companies had a harder time hiring during the last six months than at the start of 2000. The construction industry was hardest hit, with nearly two-thirds of companies reporting a skills shortfall.

Capital Software of Burgess Hill, a leading supplier of software specialists to businesses across Europe, said firms should plan carefully for their future skills needs.

Technical director Graham Rees said: "If the supply of suitably skilled people falls seriously short of the demand, which looks increasingly likely, the consequences will be far more serious than just a slowing-down of potential development."