Strategy Unit Report
Ethnic minorities in the labour market
Executive Summary
The problem
The employment rate for ethnic minority groups is currently 58 per cent,
compared to 75 per cent for the population overall. This gap of sixteen percentage
points has remained constant for over a decade.
Ethnic minorities currently make up eight per cent of the UK population, and are set to account for more than half of the growth in the working-age population over the next decade.
Failure to tackle this persisting employment disadvantage will have increasingly serious economic consequences, in addition to contributing to social exclusion experienced by some ethnic groups, and potentially damaging community cohesion.
Varied disadvantage
There are wide variations in the labour market achievements of different ethnic groups, with some ethnic groups experiencing higher employment rates and levels of occupational achievement than others, who may be significantly disadvantaged in comparison.
Labour market outcomes are also shaped by distinctions within ethnic groups, with gender, generation and geography playing key roles.
Varied causes
The causes of the employment disadvantage are no less varied. Educational underachievement is a significant factor, with the proportion of pupils gaining five or more GCSEs at grades A*-C much lower amongst some ethnic minority pupils than amongst white pupils. In general, however, the employment disadvantage remains once differences in educational attainment are taken into account.
Some ethnic minority groups are over-represented in areas of deprivation, where barriers to employment such as poor public transport and isolation in areas with high levels of worklessness are concentrated.
There is also strong evidence that discrimination plays a significant role. Whilst equal opportunities legislation has had some success in combating overt discrimination, it persists in some cases; and indirect discrimination, where policies or practices inadvertently disadvantage ethnic minorities, remains a problem.
The strategy
The objective of this strategy is that, in ten years’ time, ethnic minority groups living in Britain should not face disproportionate barriers to labour market achievement.
To achieve this objective, the strategy takes into account the variations in the nature and causes of the employment disadvantage; builds on existing policies; and recognises the role of ethnic minority communities themselves in removing the barriers to employment.
The strategy also recognises that generic solutions to a complex and varied problem will often be inappropriate. Instead, it is designed to allow for more targeted action to meet the different needs of different groups.
Four key areas
The strategy sets out four key areas for action:
- Building employability
High achievement at school is a critical factor in building employability, and despite the strong performance of some ethnic minority groups at school, others persistently fall behind. This report recommends practical measures to raise the educational attainment of ethnic minority pupils.
- Connecting people to work
Action is needed to connect people with work, particularly in deprived areas, which are characterised by the factors that correlate with worklessness. Whilst some labour market programmes have been set up to connect people to work by providing information, support, and advice, ethnic minorities are not fully benefiting from these schemes. In addition, this strategy recommends building on the work of the Neighbourhood Renewal Unit and extending help to the relatively high numbers of ethnic minority small businesses.
- Equal opportunities in the workplace
There have been undoubted improvements in race relations and equal opportunities over the past three decades; but racial discrimination and harassment still persists, and awareness of indirect discrimination is limited amongst some employers. This report proposes measures to address these issues.
- Delivering change
In order to ensure that there is the level of inter-departmental co-operation needed to drive through these changes, this report recommended the creation of a Task Force, bringing together Government officials and key stakeholders. The Task Force held its first meeting in September 2003, and is chaired by the Minister for Work, as Champion Minister for Race. Progress on delivering the recommendations of this report has begun, and the Task Force will report on progress annually, with a full review of its effectiveness after three years.
