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Business News 2005
Business News-50 Years to Plug Asian Unemployment Gap
 


50 YEARS TO PLUG ASIAN UNEMPLOYMENT GAP
(6 July 2005)

Job SeekersThere are now more black and Asian people in work than there were eight years ago, but progress is slow, according to a TUC report published today (6 July 2005). And if black unemployment continues to fall at such a modest rate, it could take 46 years before there are the same numbers of ethnic and white people out of work. 'Black workers, jobs and poverty' analyses official statistics to show that unemployment amongst the UK's ethnic minority communities currently stands at 11 per cent, but drops to five per cent for white workers.

Having one or more parents in paid employment has a major impact on a family's finances because there is a clear link between work and poverty, says the report. As more black and Asian adults are currently without work, it follows that their families are more likely to be poor.'Black workers, jobs and poverty' notes the Government's 2020 target for the elimination of child poverty, and says that if this is to be achieved, the improvement in the black employment rate needs to accelerate rapidly.

Active job creation schemes aimed at helping lone parents, and sick or disabled people into work, concentrated on those areas of the country where unemployment currently stands at more than 7 per cent, would have a significant impact on the numbers of black and Asian people out of work, says the report.

The UK's towns and cities with the highest unemployment rates also tend to be home to large ethnic minority communities, so Government resources targeted on areas like Southwark where unemployment is as high as 13.5 per cent and Leicester (10.7 per cent) could see a dramatic improvement in the black unemployment rate.

Continued employer reluctance to recruit ethnic minority candidates, even though they may be better skilled than fellow white job hunters, is blamed for the continuing gap between the numbers of black and white people out of work. The report shows that, whatever the level of qualification, an ethnic minority person is more likely to be unemployed. For example, a white person who only has GCSEs, is more likely to have a job than a black job hunter with A levels.

And even white people born abroad fare better in the job stakes than black or Asian people born in the UK, says the report. Seventy two per cent of white people born abroad have jobs in the UK, compared to just 59.1 per cent of black people born here.

TUC General Secretary Brendan Barber said: "Tackling employer prejudice and bigotry during the recruitment process must be a priority for unions, but active job creation schemes targeted on areas of high unemployment are also a must if we are not to continue to see huge differences in the numbers of black and white people out of work for the next 50 years."

'Black workers, jobs and poverty' believes that extending the Race Relations Amendment Act beyond the public sector would have a real impact, and make it much more difficult for private sector firms not to take on black and Asian candidates during the recruitment process.

Government is in a prime position to lead by example and should be using its purchasing power to award contracts to companies who have demonstrated a commitment to recruitment policies that actively counter the discrimination that still exists, says the report.

The table below shows the regions of the UK that could benefit most from active job creation policies, and therefore see more ethnic minority job seekers into work. For each region, the top two unemployment hotspots are listed, except where only one district has unemployment of more than seven per cent.

London Boroughs Unemployment rate
Southwark 13.5%
Tower Hamlets 12.1%
North West  
Preston 8.3%
Copeland 8.2%
Eastern  
Basildon 7.1%
Ipswich 7.2%
East Midlands  
Leicester 10.7%
Chesterfield 8.3%
Northern  
Middlesborough 9.7%
Derwentside 8.9%
South East  
Thanet 10.0%
Sevenoaks 7.8%
South West  
Penwith 7.0%
West Midlands  
Sandwell 9.1%
Birmingham 8.9%
Yorks and the Humber  
Kingston-upon-Hull 9.7%
Scottish  
North Lanarkshire 9.5%
North Ayrshire 9.2%
Wales  
Blaenau Gwent 7.4%
Rhondda Cynon Taff 7.0%
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