In 10 years there will be more than 250,000 new graduate jobs in London.

The London Development Agency has revealed the tough graduates jobs market will be eased over the next 10 years with the creation of half a million new jobs.

In the LDA's Destinations 2020 report, it claims more than half of the roles will require degree-level skills and London is forecast to return to its 2008 employment peak by 2013 – two years ahead of the UK as a whole.

The report also predicts an expansion of the business service sector which is estimated to grow by 400,000 jobs - three quarters of London’s overall employment growth. High-skilled occupations, such as managerial and professional jobs, are also expected to see significant rises.

Stephen Evans, Director of Employment and Skills at the London Development Agency said: "London is predicted to lead the UK's economic recovery. Today's report projects there will be 540,000 new jobs in London by 2020. Crucially, it shows London's employers are demanding an increasingly higher level of skills - one half of new jobs will require degree-level skills. We want to ensure that all Londoners have every chance to share in the city’s success. So we will continue to invest to equip Londoners with the skills they need to gain these new jobs. Employers and public agencies need to work together to ensure that we build a fairer and more prosperous London."

"Destinations 2020 gives us a blueprint for the future. With one in three working-age Londoners out of work - one of the highest rates in the country - our task is to ensure we have the right level of investment and the right mix of programmes in place to meet the challenges and opportunities over the coming decade. We need to equip Londoners with the skills employers demand, only by doing this will we ensure employers have the workforce they need and extend opportunity to all Londoners."

The report findings will help to guide future investment decisions in programmes that support out of work Londoners, providing a strong evidence base for investment. It will also support employers and Londoners making decisions about investment ain skills and their careers.