Investing in housing, transport and people should be the top priorities for the capital, business leaders have said ahead of next week's government Spending Review.
John Dickie, chief executive of Business LDN, an organisation that represents a number of employers in the city, said Transport for London (TfL) needed a long-term financial settlement so it could "plan with confidence".
He also said the housing crisis needed to be addressed, which in turn would help reduce unemployment.
The lack of affordable homes in the city was "not just a social issue", he said, but was holding back the economy.
Mr Dickie said London currently had the highest unemployment rate in the country, and Londoners should be given the skills they need to get into work.
"It means investing in people and in the jobs of the future. Perhaps most importantly, we need investment into housing.
"Housing is not just a social crisis in London, it's also holding back the economy. It's harder for businesses to keep and then retain their staff.
"The sheer cost of getting a house – whether renting or trying to get on the housing ladder – makes it hard for businesses to attract and retain the talent they need."
He said "a bit more imagination, a bit more innovation" was needed.
"There are multiple impacts – the most obvious is the cost and how it makes it harder to attract and retain talent, but also the stress that employees face from uncertain or precarious rental arrangements."
