Black and Asian unemployment rate more than double that of white people as recession looms

The unemployment rate among Black, Asian and minority ethnic workers (BME) is more than double that of their white counterparts, new figures show.

The gap has widened significantly since the start of the pandemic with the unemployment rate for BME workers currently standing at 7.7 per cent compared to 3.5 per cent for white workers, the latest figures from the Office for National Statistics (ONS) reveal.

Annual averages of the unemployment gap over the last 20 years show it is now the widest it has been since 2008, analysis by the Trades Union Congress has highlighted.

It comes as the Bank of England has forecasted a recession in the UK as inflation will spiral to more than 10 per cent by October – the highest rate in 40 years.

Black households face being disproportionately impacted by the cost of living crisis with the majority of households having less than £1,500 in savings and being more likely to go hungry, The Independent recently revealed.

Frances O’Grady, the general secretary of the Trades Union Congress (TUC), is calling on the government to “challenge” structural racism that is resulting in job inequality.

“BME workers bore the brunt of the economic impact of the pandemic – in every industry where jobs were lost to the impact of Covid, BME workers were more likely to have been made unemployed,” the union boss said.

“Now, BME workers are being held back in their search for work. The pandemic held up a mirror to discrimination in our labour market.

“As we start to build back, the time for excuses and delays is over. Ministers must challenge the systemic racism and inequality that holds back BME people at work.”

TUC analysis shows that the unemployment rate for Black and Asian workers is now 1.9ppts (33 per cent) higher than it was pre-pandemic; for white workers, it’s 0.1ppts (2 per cent) higher.

As the nation continues to bounce back after the Covid-19 pandemic, these stark disparities show that the employment rate for ethnic minority workers is recovering at a slower rate than that of white workers.

The TUC says the data shows BME workers, who were disproportionately impacted through the pandemic by Covid-related job losses, are now significantly more likely to be trapped in unemployment than their white counterparts.

It recently emerged that Black, Asian and minority ethnic women are twice as likely to be on zero-hours contracts as white men, prompting campaigners to demand that the government publish its long-delayed Employment Bill – purported to better protect workers’ rights – and to ban unstable types of working arrangements.

Plans to introduce the legislation have been dropped from this month’s Queen’s Speech, government officials confirmed last month, marking the second successive year it has been pushed back.

This time last year, as the Covid-19 pandemic gripped the nation, the unemployment rate for Black and minority ethnic workers had risen at three times the speed of the unemployment rate for white workers. A report by the Public Affairs Committee in February revealed that the Department for Work and Pensions (DWP) has been unable to explain this gross disparity.

Now campaigners are calling for an end to the structural discrimination and inequalities that hold minoritised groups back in the workplace.

The TUC is calling on employers to work with trade unions to establish a comprehensive ethnic monitoring system, covering ethnicity pay-gap reporting, recruitment, promotion and a number of other procedures.

The union is also calling on the Equality and Human Rights Commission (EHRC) to work with trade unions to use its investigative powers and its newly established Race Discrimination Fund to address race discrimination in all labour market sectors.

Moreover, by introducing race equality requirements into public sector contracts for the supply of goods and services, the TUC said this would incentivise companies to improve their race equality policies and practices and minimise the use of zero-hours, temporary and agency contracts and promote permanent employment.

A government spokesperson said: “No one should be held back at work because of their background. We’re proud that the ethnic minority employment rate is at an all-time high, with a record 4.26 million people from an ethnic minority background in work.”

“But are committed to doing more through our Way to Work jobs push and levelling up through the 70 actions in our Inclusive Britain plan, including boosting employment prospects by supporting ethnic minority students to access the right higher education for the job they want.”

The number of ethnic minority groups living in the UK has increased over time and therefore more people from these backgrounds are currently in paid employment - however there remains a consensus that more work needs to be done to achieve equity.

A spokesperson for the Equality and Human Rights Commission (EHRC) said: “The benefits of workforce diversity are well known, including better decision-making, higher productivity and increased employee engagement. Every employer should strive for a workforce that reflects its diverse community

“The EHRC has recommended mandatory reporting by ethnicity for staff recruitment, retention and promotion. This would help employers to understand any barriers facing some ethnic minorities in the workplace and to take action to improve diversity, including by eliminating bias in recruitment.

“To tackle race discrimination at work, last year the EHRC launched a Race Legal Support Fund to help employees to take action against organisations that may have broken equality law. We have already funded seven cases, including Rico Quitongo, a Scottish football player who is taking action against his former clubs for race discrimination.”