The shortage of skilled workers in the UK has reached a 12-year peak, a survey by the corporate banking division of high street bank Lloyds TSB has concluded.

More than half (52%) of firms surveyed have had difficulties recruiting staff in the past year, the highest level since the survey began.

The region facing the greatest challenge is the East Midlands, where 62% of companies find it hard to get skilled candidates. Even 46% of companies in London are struggling to find the right people.

But there could be more workers on the market before the summer. Almost half of companies surveyed said they expected higher turnover during the first half of 2005.

“Recruiters that aren’t making direct approaches to candidates will be finding life tough, and some of the best recruiters get the majority of candidates through referral,” said Lee Sweeney, regional director for West Yorkshire at finance recruiter Sharp.