LOG BOOK

https://ifs.org.uk/inequality/race-and-ethnicity-chapter/
RACE AND ETHNICITIES
“The UK has become rapidly more ethnically diverse in the past few decades. From 1991 to
2011, the White population of England and Wales grew by less than 2% – including rapid
growth in White migrant populations – while all other ethnic groups combined grew by
166%.”
 Migration flows are important in understanding ethnic diversity.
 'Natural growth' is becoming a key driver of increasing ethnic diversity.
 The UK's latest censuses will showcase the size and diversity of the minority ethnic
population.
 In 2011, nearly 20% of the population in England and Wales identified as part of an
ethnic group other than White British.
 Scotland and Northern Ireland have significantly less ethnic diversity compared to
England and Wales.

“…poverty rates among minority ethnic individuals are much higher than the White British
majority – and even more so among children. Pre-pandemic, more than half (52%) of
Bangladeshis, including more than two-thirds of Bangladeshi children (67%), were in
poverty after housing costs, for instance, even after large falls in the preceding decades.”

https://www.ethnicity-facts-figures.service.gov.uk/work-pay-and-benefits/employment/
employment/latest/#title
 - Tables + analysis.

- The employment rate for individuals aged 16 to 64 across the UK was 76% in 2022.
- The 'White Other' ethnic group had the highest employment rate at 82%, which
suggests that people from this group may have relatively good career opportunities.
- In contrast, the combined Pakistani and Bangladeshi ethnic group had the lowest
employment rate at 61%. This indicates that individuals from this group might face
additional challenges or barriers in obtaining employment.
- Other Asian ethnic groups, such as Indian and 'Asian other', have employment rates of
77% and 71% respectively, which are comparable or slightly below the national
average.
- While the 'White Other' group appears to have superior access to employment
compared to the national average, the Pakistani and Bangladeshi group appears to be
at a particular disadvantage.

The data suggest that career opportunities may vary not only between Asian and
White people but also among different ethnic subgroups. However, it's important to
note that these figures do not explain the causes of employment rate differences,
which may include factors like education, access to professional networks,
discrimination, geographical location, and many other socio-economic factors. For a
more comprehensive analysis, examining these additional factors would be
necessary.

https://www.probonoeconomics.com/ethnic-inequalities-in-labour-market

Action needed: Persistent ethnic inequalities in the labour market.

Add tables
- Ethnic minority applicants need to send 60% more applications to receive a positive
employer response compared to White British persons.
- 1 in 13 ethnic minority workers are in insecure jobs; this rises to 1 in 8 for Black employees,
versus 1 in 17 on average.
- Pakistani and Bangladeshi workers are paid 16% and 15% less, respectively, than White
British workers.
- Ethnic minority workers are more likely to be unemployed and experience in-work poverty
due to lower quality jobs.
- Post-pandemic recovery needs to benefit ethnic minority groups who were
disproportionately affected.
- Charities supporting ethnic minority communities face underinvestment: 1 charity per 343
White UK citizens vs. 1 per 550 ethnic minority citizens.
- Black and minority ethnic-led charities have lower incomes (average £78,960) compared to
the sector average (£142,439).
- Organisations led by Black and minority ethnic individuals are smaller, less financially
resilient, and were more impacted by the pandemic's economic effects.
- During the pandemic's first year, 87% of Black and minority ethnic-led small organisations
were at risk of closing, versus 10% of the overall charity sector.
- These charities often operate in areas of higher deprivation, limiting local fundraising
opportunities.
- Recent years have seen increased attention and funding for these charities, but mostly
through short-term emergency funding rather than sustainable support.
- Over 1,400 applications were received by the Resourcing Racial Justice fund, which could
support only about 3%.
- Voice4Change’s emergency fund for Black and ethnic minority charities was almost seven
times oversubscribed.
- The goal is to rebuild a more inclusive labour market with better opportunities for Black and
minority ethnic groups, requiring government policy changes, employer attitude shifts, and
continued charity support.
Ethnic minorities more likely to be
unemployed because employers reject
applications from ‘non-white’ names
https://www.britsoc.co.uk/media-centre/press-releases/2020/december/ethnic-minorities-
more-likely-to-be-unemployed-because-employers-reject-applications-from-non-white-
names/

- A study indicates ethnic minorities in Britain face higher job application rejection rates due
to perceived non-white names.
- Dr. Wouter Zwysen (European Trade Union Institute, University of Essex), Dr. Valentina Di
Stasio (Utrecht University), and Professor Anthony Heath (University of Oxford) conducted
the research.
- The study involved sending out fake job applications with identical qualifications but names
suggesting different ethnic backgrounds.
- Ethnic minority applicants were less than half as likely to get an interview invite compared
to those with white British-sounding names.
- A significant correlation was found between the high rejection rates and lower employment
rates among certain ethnic groups, notably Pakistani, Bangladeshi, black African, black
Caribbean, and Middle East and North African communities.
- Conversely, Chinese and Indian applicants, despite similar rejection rates, showed
employment rates closer to white British levels, possibly due to stronger social networks
aiding job searches.
- The research, published in the Sociology journal by the British Sociological Association,
highlights the impact of name-based prejudice on employment opportunities.
- Ethnic discrimination in hiring is closely linked to the broader employment disadvantages
faced by ethnic minorities.
- Despite similar levels of hiring discrimination, the extent of employment penalties varies
among different ethnic groups, with Chinese and Indian minorities experiencing less
disadvantage.
- The study suggests that access to resourceful social networks may help some ethnic groups
overcome hiring discrimination.
- Highly qualified ethnic minority candidates are less affected by prejudice, finding it easier
to secure suitable employment, while those with lower qualifications struggle more.
Catney, G. and Sabater, A. (2015). Ethnic Minority Disadvantage in the Labour Market:
Participation, Skills and Geographical Inequalities. Joseph Rowntree Foundation.
Available at: www.jrf.org.uk

Statistical Findings:
Unemployment Rates:
In 2011, unemployment rates for ethnic minority groups like Pakistanis (16%) and
Bangladeshis (15%) were significantly higher than for the White British group .
Between 2001 and 2011, unemployment rates increased notably for Caribbean and Mixed
White-Caribbean groups, each by 3 percentage points .
Occupational Segregation:
Occupational segregation is evident, with ethnic minorities often concentrated in lower-
skilled occupations. For instance, the proportion of ethnic minorities in professional
occupations was significantly lower than their White counterparts .
Self-Employment:
Self-employment rates increased for the Pakistani group between 2001 and 2011, indicating a
potential shift towards self-employment due to barriers in the formal job market .
Gender Disparities:
Women from ethnic minorities experienced higher unemployment rates and greater
occupational segregation compared to men within the same ethnic groups. For example,
Bangladeshi women had a 20% unemployment rate, among the highest for any group .
Geographical Variations:
Unemployment and employment types vary significantly across different regions. For
instance, areas like Birmingham and parts of London showed higher unemployment rates for
several ethnic minority groups .

Clark, K. and Shankley, W., [Year of Publication]. Ethnic Minorities in the Labour Market
in Britain. [pdf] Available at:

Employment Rates
White Men (2018): Approximately 80%
Asian Men (Pakistani, 2018): Approximately 70%
These statistics illustrate a closing gap over time, but with White men still having higher
employment rates compared to Pakistani men, indicating persisting disparities.

Economic Activity
Chinese Group: Shows the lowest levels of economic activity among Asian subgroups,
affecting their representation in employment statistics.
Self-Employment Rates
Pakistani Men: High self-employment rate at 23.3%, indicating a significant move towards
self-employment due to discrimination or lack of opportunities in the paid labor market.
Earnings Disparities
White Irish Men: Mean weekly earnings of £853.5
Pakistani Men: Mean weekly earnings significantly lower at £507.7
Bangladeshi Men: The lowest mean weekly earnings at £385.6
These figures underscore significant earnings disparities, with Asian groups, particularly
Pakistani and Bangladeshi men, earning considerably less than their White counterparts.

Employment Rates Analysis

1. Graphical Data on Employment Rates for Men (2001-2018)

The employment rates for men from 2001 to 2018 show a trend of gradual improvement for
both White and Asian groups, although disparities remain. Notably, White groups generally
exhibit higher employment rates than their Asian counterparts.
For example, the employment rate for White men has been consistently higher compared to
Pakistani men, which represents a significant portion of the Asian demographic in the UK.
While there has been a convergence over time, the gap signifies ongoing challenges in
achieving parity in employment opportunities.
2. Graphical Data on Employment Rates for Women (2001-2018)

Similar trends are observed for women, with White women having higher employment rates
than Asian women, particularly Pakistani and Bangladeshi women. The gap is more
pronounced among women, highlighting gendered differences in the labor market
experiences of ethnic minorities.
This disparity can be partially attributed to cultural factors, caregiving responsibilities, and
higher rates of economic inactivity among South Asian women, alongside discrimination in
the labor market.
Self-Employment and Economic Activity
Self-Employment Rates:
Asian men, particularly of Pakistani descent, exhibit high self-employment rates. This trend
suggests a push towards self-employment due to difficulties faced in the paid labor market,
potentially driven by discrimination.
This form of employment, while showcasing entrepreneurial spirit, often falls into low-status
and low-reward categories, indicating limitations in career opportunities compared to self-
employed White individuals.
Economic Activity:
Economic activity rates vary significantly, with White individuals showing higher activity
rates compared to Asian counterparts. Among Asian groups, Chinese individuals display
notably lower levels of economic activity, which impacts their representation in employment
statistics.
Earnings Disparities
Mean Weekly Earnings:
There's a pronounced gap in mean weekly earnings between White and Asian workers, with
White Irish and Other White groups often at the higher end of the spectrum, and Pakistani
and Bangladeshi groups at the lower end.
These earnings disparities signify not just differences in employment rates but also in the
quality of employment and remuneration levels, highlighting structural inequalities in the
labor market.
Unemployment Rates
Higher Unemployment Among Asians:
Asian groups, particularly Pakistanis and Bangladeshis, face higher unemployment rates
compared to White groups. This reflects greater barriers to entry into the labor market and
potentially higher incidences of discrimination.
Chartered Institute of Personnel and Development (CIPD), 2020. Ethnic disparities and
inequality in the UK: call for evidence. Submission to the Commission on Race and Ethnic
Disparities. [pdf] CIPD.
The document submitted to the Commission on Race and Ethnic Disparities by the Chartered
Institute of Personnel and Development (CIPD) provides comprehensive insights into the
disparities in employment opportunities, career progression, and health outcomes affecting
ethnic minorities in the UK, with a focus that can be related to the differences between Asian
and White individuals in the labour market.
### Employment and Career Progression Disparities

Representation in Employment: Approximately 14% of the working-age population comes

from BAME (Black, Asian, and Minority Ethnic) backgrounds, a figure projected to rise to
nearly a fifth by 2030. Employment rates among BAME groups are significantly lower than
for the White British workforce, with the combined Pakistani and Bangladeshi ethnic groups
having an even lower rate at 57%.

Career Progression: Less than half (49%) of BAME respondents felt their career progression
had met or exceeded their expectations, compared to a higher satisfaction among White
British counterparts. Furthermore, only 49% of BAME respondents believe there is equal
access to development and career progression opportunities.

Reasons for Disparities: The document identifies discrimination, a lack of training and
development, and inadequate career education as primary reasons BAME individuals,
including Asians, face barriers to career progression.

Data and Disclosure Practices

-Ethnicity Disclosure: Only 47% of employers have requested employees to disclose their
ethnicity, with a higher prevalence in the public sector (69%) compared to the private sector
(36%). This suggests a gap in the availability of data necessary to identify and address
inequalities.

Recommendations for Improvement

Ethnicity Pay Reporting: To address disparities, the CIPD advocates for mandatory Ethnicity
Pay Reporting, which could help reveal pay gaps between ethnic groups and inform targeted
interventions.

Inclusion Strategies: Recommendations include developing an anti-racism strategy, sourcing

diverse suppliers, and promoting equality and inclusion in the workplace.
Addressing Informal Employment

Informal Sector Employment: Evidence suggests that a percentage of the ethnic minority
population, including Asians, might resort to informal sector employment due to being
excluded from opportunities in the formal economy.

Conversations About Race

Importance of Dialogue: The document highlights that 35% of respondents felt the need to
discuss ethnicity at work, with employee network groups most likely to initiate such
conversations. There's a noted difference in perception between White British (23%) and
BAME (40%) respondents on the necessity of discussing race, indicating a potential area for
intervention to improve understanding and inclusion.

Public Sector Focus

Public Sector Data Collection: With a higher rate of ethnicity disclosure in the public sector,
there's a unique opportunity to utilize this data to identify and address disparities in
employment and progression opportunities more effectively.

Educational Gaps
Career Aspirations vs. Reality: Reports cited in the document highlight a substantial gap
between the career aspirations of young people, including those from ethnic minority
backgrounds, and the availability of jobs, underscoring the need for improved career
education that aligns with market demands.