Increasing Employment
for Ethnic Minorities:
a summary of research findings
Increasing Employment for Ethnic
Minorities: a summary of research findings
A summary of research findings prepared by the Centre for Economic & Social
Inclusion for a National Audit Office study on increasing employment for ethnic
minorities
Laurie Bell
Jo Casebourne
May 2008
Executive Summary
1. Ethnic minorities continue to experience higher unemployment rates, greater
concentrations in routine and semi-routine work and lower earnings than do
members of the comparison group of British and other Whites. There is an
increasingly large evidence base supporting the existence and persistence of the
‘ethnic penalty’ in the UK labour force. The key findings are summarised below.
Employment gaps
2. The ethnic minority employment gap for the first quarter of 2007 was 14.2
percentage points. Despite best efforts, the Department for Work and Pensions
(the Department) acknowledge that recent policies and initiatives aimed at
increasing ethnic minority employment have not had a major impact on reducing
the gap.
3. There is considerable variation between ethnic minority groups and sub groups in
relation to employment. Broadly, Indians and Chinese have employment rates and
earnings levels similar to those of White members of the population whereas
Caribbeans, Africans, Pakistanis and Bangladeshis are faring much worse.
4. Key variations within this broad pattern include:
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•
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Higher overall economic activity rates for ethnic minority men than women.
Consistently low employment rates for Pakistani and Bangladeshi women and
Black men.
Generally lower levels of labour market participation for ethnic minority refugees
and asylum seekers compared to the rest of the ethnic minority population.
5. Research also suggests that first generation immigrants tend to be less successful
in the labour market than their children: this has been found to particularly apply to
Pakistani and Bangladeshi women (EOC, 2007); census data analysis has
suggested that the reverse applies for Pakistani men in their thirties, with those
born abroad doing better than those born in the UK (Simpson et al., 2006).
6. As well as access to employment, employment gaps also exist in terms of earnings
and occupational progress when in work:
•
•
Overall, ethnic minorities are over-represented in occupations with relatively
low-skill requirements and under-represented in higher skill occupations,
especially managerial (Green et al., 2005).
Occupational differences translate into earnings inequality – Black Africans,
Pakistanis and Bangladeshis have been found to experience the widest wage
differentials (Clark and Drinkwater, 2007).
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•
Refugees appear to particularly experience insecure employment and poor
conditions (Bloch, 2002).
7. Longitudinal research indicates that the employment gap between the ethnic
minority and White groups has narrowed overall, but that certain ethnic groups
continue to face substantial disadvantage:
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Since the 1970s the gap between women overall and Pakistani and
Bangladeshi women, or Muslim women, in particular has grown (Berthoud and
Blekesaune, 2007; Clark and Drinkwater, 2007; Heath and Yu, 2005).
The largest improvements in employment performance in the 1990s were
experienced by Black African and Pakistani and Bangladeshi men.
There is little evidence of occupational progress among ethnic minorities in the
1990s (when other factors, such as education, are accounted for) (Clark and
Drinkwater, 2007).
8. Low human capital has been widely found to be a major barrier to entry into
sustainable employment:
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Leitch (2006) identifies ethnic minorities in general, and the Pakistani,
Bangladeshi and Black Caribbean communities in particular, as among the key
groups who, in general, lack skills.
Despite improvements in ethnic minority educational attainment, the proportion
of school pupils who get five or more GCSE grades at A*-C is much lower
amongst Black, Pakistani and Bangladeshi pupils than amongst Whites
(Strategy Unit, 2003)1.
English language and/or work relevant language training has been identified as
a core support need for certain ethnic minority groups and refugees (Tackey et
al., 2006; Bloch, 2002; Work and Pensions Committee, 2005).
9. Leitch and others (Clark and Drinkwater, Heath and Cheung) emphasise the link
between educational success and labour market success, in asserting learning and
skills as a key route for increasing ethnic minority employment.
10. However, ethnic minorities, even those enjoying relative success, have been found
not to be doing as well as they should be given their education and other
characteristics (Strategy Unit, 2003).
1
Although the gap is closing rapidly since this report between Bangladeshi and white children.
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Geography
11. Ethnic minorities tend to be clustered in certain geographical areas with high levels
of deprivation and lack of suitable (often semi-skilled) employment opportunities.
Several studies cite structure of employment and geographical location as barriers
to employment for all ethnic minority groups.
12. However, Simpson et al. (2006) found that in areas that are predominantly White,
ethnic minorities are still twice as likely to be unemployed than their White
counterparts.
Religion and culture
13. Several studies suggest that employment penalties among ethnic minority women
have more to do with religion than ethnic group. Religion appears to be a weaker
predictor of employment penalties for ethnic minority men (Berthoud and
Blekesaune, 2007; Clark and Drinkwater, 2007).
Gender and family responsibilities
14. Gender and family responsibilities have been identified as an influence on labour
market outcomes for some ethnic minority groups:
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Pakistani and Bangladeshi women have been found to face barriers to work
because of household gender roles, such as childcare and caring
responsibilities (Tackey et al., 2006).
Single Caribbean men have been found to be twice as likely to be unemployed
as those who are married or living with a partner.
Ethnic minority lone parents may face particular barriers to work since they are
less likely to access childcare or other related support than White lone parents.
15. Self-employment is an important form of economic activity for ethnic minority men
in the UK - Pakistani men in particular but also Indian, Chinese and Other-Asian
men (but not for men from Black ethnic groups) (Owen, 2000).
16. ‘Push’ factors, especially wage discrimination, have been found to have an
important influence on ethnic minorities choosing to go into self-employment,
although ‘pull’ factors, such as informal loans also appear to have a role (Clark and
Drinkwater, 2000).
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Ethnic penalties and discrimination
17. The element of ethnic disadvantage not explained by other factors, such as
education, is often described as the ethnic penalty or discrimination. Discrimination
in employment selection processes has been identified as a key feature of the
ethnic penalty in the UK:
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Candidates rejected at the first stage of job application for having an Asian
name or coming from a non-White background.
Ethnic stereotypes and prejudices on the part of employers.
Perpetuation of inequalities by employment agencies by predicting the rejection
of ethnic minority candidates and so avoiding putting them forward for jobs.
Members of ethnic minority groups themselves aware of the potential for
discrimination, constraining their job-seeking (Wrench and Modood, 2000).
Recruitment through internal vacancies, word-of-mouth or advertising only in
national and regional English newspapers (Tackey et al., 2006).
A ‘linguistic penalty’ and hidden assumptions in competence frameworks in the
job interview process (Roberts and Campbell, 2006).
18. The impact of discrimination, especially indirect discrimination, on ethnic minority
labour market outcomes is difficult to quantify. However, the prevailing assessment
in the literature is that significant ethnic discrimination persists and is likely to
account for a significant part of continuing employment gaps.
Equality and diversity in the workplace
19. There is broad recognition that demographics mean that organisations will
increasingly be compelled to promote race equality and tackle discrimination.
However, there is some contention over the strength of the (short-term) business
case for diversity (Gallageher and O’Leary, 2007; Task Force on Race Equality and
Diversity in the Private Sector, 2004).
20. While having some impact, anti-discrimination legislation, equal opportunities plans
and diversity management are generally considered not to have brought any
significant progress (Gallagher and O’Leary, 2007; Wrench and Modood, 2000).
Employer involvement has been identified as key to effective equality and diversity
workforce initiatives (Jobs for the Future, 2004).
Jobcentre Plus service delivery
21. Some ethnic minorities have been found to remain alienated from the Department’s
mainstream services, while those who do use Jobcentre Plus have been found to
consistently rate almost all aspects of the service lower than their White
counterparts (Johnson and Fidler, 2006).
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22. Evidence has suggested that there is a ‘cultural gap’ between ethnic minority
clients and many of the Department’s staff delivering services to them (Work and
Pensions Committee, 2005). Staff attitudes have been found to be the most
common cause for potential or actual complaint across all ethnic groups (Johnson
and Fidler, 2006).
23. Difficulties in understanding English has been identified as a key barrier to
accessing Jobcentre Plus and the Department’s services for some members of the
ethnic minority community. Several sources also identify language support as a
key area in which Jobcentre Plus could improve (Hudson et al., 2006; Work and
Pensions Committee, 2005). Research also points to a lack of awareness of
Jobcentre Plus discrimination procedure and a lack of confidence in Jobcentre Plus
staff’s commitment to acting on it (Hudson et al., 2005)
Administration of Benefits
24. Lack of awareness and a number of aspects of benefit administration, including
confusing letters, inaccurate advice and ‘habitual residence test’, have been found
to act as barriers to ethnic minorities taking up benefits .
25. Older people from ethnic minority groups are identified as particularly likely to
experience barriers to take-up. Additional barriers particularly affecting this group
include:
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Language barriers and literacy problems.
Apprehension approaching, and a lack of trust in and comprehension of,
statutory services.
Lack of knowledge of benefits or the workings of the benefits system (Barnard
and Pettigrew, 2003).
26. Jobs for the Future’s report for the National Employment Panel (NEP) (Jobs for the
Future, 2004) identified three broad categories of services that enable ethnic
minority employment initiatives to be effective:
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Recruitment and outreach programmes.
Pre-employment skill training.
Post-employment support.
27. Research suggests that the New Deal for Young People (NDYP) has generally not
been successful in supporting ethnic minority participants into sustainable
employment (Fieldhouse et al., 2002).
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28. Lone parents from ethnic minority groups are less likely than White lone parents to
access the New Deal for Lone Parents (NDLP) and less likely to leave the
programme for a job. A Departmental report on this issue suggests this is due to
lack of awareness and negative perception of the NDLP and other related services
(Pettigrew, 2003).
Outreach
29. Research has determined a number of ways in which outreach services can
effectively engage ethnic minority groups. The Ethnic Minority Outreach Initiative
(EMO) had considerable success in improving employment opportunities and
outcomes for ethnic minorities, especially for Indian and Pakistani women (Barnes
et al., 2005; Ethnic Minority Employment Taskforce, 2006; Work and Pensions
Committee, 2005).
30. Use of workers with community language skills and cultural awareness has been
identified as a key strength of EMO, while weaknesses were found to largely relate
to time constraints (Barnes et al., 2005). The Work and Pensions Select
Committee (2007) have expressed concerns that current initiatives, i.e. the
Deprived Area Fund and Cities Strategy, do not have a prescribed focus on ethnic
minorities.
Specialist Employment Advisor (SEA) pilot
31. SEAs have been found to have made some progress in building employer
engagement in tackling discrimination and opening up employment opportunities to
ethnic minorities, from which a number of areas of best practice have been
identified, including using a supply and demand model (Pettigrew et al., 2006)
32. Pettigrew et al. (2006) determined the overall lesson of the SEA pilot as showing
that engaging with both communities and employers is a long-term process rather
than a quick fix.
Fair Cities
33. The Interim Report for the evaluation of the Fair Cities Pilots 2006 (Atkinson et al.,
2007) measured performance in a number of key areas, including:
•
•
Employer engagement – secured through Fair Cities personnel, training
providers and, to a lesser extent, Jobcentre Plus and Business Link.
Ability to help disadvantaged groups – few problems attracting beneficiaries,
particularly ethnic minorities (who make up 80 per cent of entrants).
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•
Influencing employer recruitment procedures to benefit minority group
jobseekers: some evidence that some pipelines are engaging in the alteration of
employer’s recruitment and selection behaviour.
34. Underperformance was identified in getting participants into sustained employment.
The numbers finding positions after participation in the scheme was low.
Introduction
35. Britain is becoming increasingly diverse. In urban areas such as London,
Birmingham and Leicester, ethnic minorities make up a third of the population.
Ethnic minorities account for around 10 per cent of the working age population of
Great Britain. Furthermore, between 1999 and 2009, 50 per cent of the growth in
the UK workforce will be from ethnic minority communities.
36. Evidence has consistently shown that ethnic minorities experience higher
unemployment rates, greater concentrations in routine and semi-routine work and
lower earnings than the comparison group of British and other Whites. Although this
varies within and between ethnic groups, ethnic minorities on average experience
some sort of labour market disadvantage. These differences cannot be fully
explained by age, education or other characteristics.
37. Due to this increasingly large evidence base supporting the existence and
persistence of the ‘ethnic penalty’ in the labour force, the UK Government has
placed greater emphasis on improving employment outcomes for ethnic minorities.
The Department for Work and Pensions (DWP) and The Department for Business,
Enterprise and Regulatory Reform (DBERR) shared a Public Service Agreement
target to: over the three years to spring 2008, increase employment rates for
disadvantaged groups (including ethnic minorities), taking account of the economic
cycle, and significantly reduce the difference between their employment rates and
the overall rate.
38. The purpose of this literature review is to provide a synthesis of existing published
work in Great Britain relevant to ethnic minorities and employment, outlining what
the evidence is and what the key recommendations are. The report is structured
around the main research themes, summarising the key research findings and
drawing together the key recommendations made.
39. This review covers the period from 2000 to 2007. The methodology included
identifying the main DWP research reports published in that period, and
supplementing them with additional searches of academic literature and other
published reports where necessary. Where concise enough, recommendations are
reproduced with minor editing; otherwise summaries are given.
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40. The review starts by examining the nature, scale and longevity of employment gaps
and moves on to examine the factors that contribute to these gaps. These include:
•
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Learning and skills.
Geography.
Religion and culture.
Gender and family responsibilities.
Enterprise.
Ethnic penalties and discrimination.
41. We then look at how these employment gaps can be tackled and examine the
contribution of DWP programmes and services including:
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•
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Jobcentre Plus service delivery.
Administration of benefits.
Welfare-to-work in general.
New Deal programmes.
Outreach.
Specialist Employment Advisers, and
Fair Cities.
The employment gap
42. Despite the efforts of DWP and other government departments, the employment
rate gap between the ethnic minority population and the overall population is 14.2
percentage points (Labour Force Survey – Quarter 1, 2007). Whilst in 2005-06
DWP spent some £15 million on initiatives specifically aimed at increasing ethnic
minority employment, the Department acknowledge that without increased effort it
could take 30 years to eliminate the employment gap. During the last ten years
there has been a slow but steady reduction of 2.8 percentage points in the gap, but
it is just 1.3 percentage points lower than in 1987. The extent of the gap has also
been shown to vary considerably between ethnic minority groups.
Employment and economic activity gap
43. Within the employment gap broadly Indians and Chinese have employment rates
and earnings levels similar to those of the White population, whereas Caribbeans,
Africans, Pakistanis and Bangladeshis fare much worse (Berthoud, 2002).
Pakistani and Bangladeshi women and Black men have been consistently found to
have the lowest employment rates in the UK. Pakistani and Bangladeshi women
have been the ethnic minority group most persistently out of employment over the
last 30 years. Africans and Caribbeans have unemployment rates twice as high as
White Britons with the same background (Simpson et al., 2006); and Black-
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Caribbeans have higher rates of economic activity than people from other ethnic
minority groups (Owen et al., 2006).
44. Much research on the ethnic minority employment gap in the UK draws on Labour
Force Survey (LFS) data. In one such analysis Carmichael and Woods (2000)
found that the likelihood of a ‘typical’ (educated to GCSE level, living in London and
married with children) man being unemployed if he is White is nearly 9 per cent.
However, if this ‘typical’ man is Pakistani or Bangladeshi, the likelihood of
unemployment rises to nearly 25 per cent. The likelihood of a ‘typical’ White woman
being unemployed was 5.7 per cent, compared to 15 per cent for a Pakistani or
Bangladeshi woman.
45. An Open Society Institute (2004) study of British Muslims in the labour market
found that:
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British Muslims are three times more likely to be unemployed than the majority
Christian group.
British Muslims have a 52 per cent economic inactivity rate.
17 per cent of British Muslims have never worked.
Those Muslims who are employed are over-represented in a small number of
low-paid industries.
46. As well as Indians and Chinese there are other groups with much smaller
employment gaps (Berthoud and Blekesaune, 2007). Black Caribbean women
have much higher participation rates than women in many Asian groups. In most
ethnic minority groups, the economic activity rate for married women is higher than
that for unmarried women. Overall, however, economic activity rates are higher for
ethnic minority men than women (Owen et al., 2006).
47. Those ethnic minorities recently arrived in the UK are generally more
disadvantaged than those who have been here for longer. This is attributed to
having lower or unrecognised educational qualifications; lacking networks and
references; and difficulties understanding the English language and culture
(Berthoud, 2000). First generation immigrants are less successful in the labour
market than their children (Strategy Unit, 2003). However, this rule may not always
apply: in their analysis of 1991 and 2001 Census data, Simpson et al. (2006)
showed unemployment among unqualified men in their thirties at 16 per cent for
Pakistanis born overseas but 25 per cent for Pakistanis born in the UK.
48. The Equal Opportunities Commission (EOC) investigation of the labour market
position of Bangladeshi, Pakistani and Black Caribbean women in the UK, which
involved a survey of over 2000 women, identified two main employment gaps
relating to unemployment and participation (EOC, 2007):
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•
•
Labour market participation - Bangladeshi and Pakistani women have the
lowest rates in Britain, but those born in the UK are twice as likely to be working
than those born overseas.
Unemployment - Bangladeshi and Pakistani women are four times as likely, and
Black Caribbean women twice as likely, to be unemployed as White women.
49. Refugees (a group containing a high proportion of ethnic minorities) are another
group with a low level of labour market participation. According to the LFS, in 2002
only 29 per cent of refugees - compared with 60 per cent of people from ethnic
minorities of those who were working - were concentrated in certain low skill, low
paid occupations (Bloch, 2002). In a survey of 400 refugees and asylum seekers
from the Somali regions, Iraq, Kosovo, Sri Lanka and Turkey, and 80 interviews,
Bloch (2002) found terms and conditions of employment to be poor and notably
worse than those experienced by other ethnic minorities.
Occupation and earnings gap
50. As well as access to employment, employment gaps also exist in terms of earnings
and occupational progress when in work. Green et al. (2005) identified a general
pattern for ethnic minorities to be over-represented in occupations with relatively
low-skill requirements, and under-represented in higher-skill occupations, especially
managerial positions. Owen et al. (2000) broke down their analysis by gender and
found:
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•
In general, men from minority ethnic groups are more likely to work in the
service sector than White men. Bangladeshi and Chinese men in work are still
highly concentrated in the distribution sector (including restaurants).
Men from minority ethnic groups as a whole are less likely than White men to
be in high status or skilled manual occupations, and are more likely to be semiskilled manual workers. However, a higher than average percentage of Indian,
Chinese, Other-Asian men are managers and administrators or professionals.
Black-African men are also more likely than average to be in professional and
associate professional occupations.
51. Analysis of LFS data suggests that entry to professional and managerial level
employment is still considerably lower for ethnic minorities. Carmichael and Woods
(2000) found that once in employment, the likelihood of a ‘typical’ White man
securing a professional job is 4.3 per cent, while the figure is just 1.6 per cent if he
is Black. For women, the figure is 0.5 per cent for a ‘typical’ White woman and 0.2
per cent for a ‘typical’ Indian woman.
52. Refugees in particular appear to experience insecure employment and poor
conditions. In her sample, Bloch (2002) discovered a notable lack of involvement in
professional jobs despite pre-migration experience. One-quarter of refugees were
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in temporary posts, mostly because they could not find a permanent job. This
differed from ethnic minorities as a group, where fewer – 11 per cent – were in
temporary posts and only 31 per cent took a temporary job because they could not
find a permanent post. Only 47 per cent of refugees were entitled to holiday pay,
compared with 92 per cent of their ethnic minority counterparts and they were also
less likely to be offered training (33 per cent and 52 per cent respectively).
53. In relation to Bangladeshi, Pakistani and Black Caribbean women, the EOC (2003)
found:
•
•
•
Bangladeshi, Pakistani and Black Caribbean women are underrepresented in
senior level jobs.
The pay gap for ethnic minority women is worse than the gap between men and
women as a whole.
Ethnic minority women are more likely than White women to be concentrated in
a narrow range of workplaces, jobs, sectors and local labour markets.
54. However, analyses suggest that earnings and occupation gaps are particularly wide
for Pakistani, Bangladeshi, Black, Caribbean and Black African men, who continue
to be more concentrated in routine and semi-routine work and receive lower hourly
earnings than do White British and other Whites. Women from these groups also
have higher unemployment rates, although for those in work average hourly
earnings tend to be as high or higher than those of White women. Pakistani and
Bangladeshi groups have notably high proportions of men who are economically
inactive (largely because of long-term sickness and disability). Bangladeshi men
who are actually in work are disproportionately concentrated in semi-routine and
routine work (Heath and Cheung, 2006).
55. As might be expected, these occupational differences appear to translate into
earnings inequality. Owen et al. (2000) found that male earnings are highest for the
White and lowest for the Bangladeshi ethnic group. Indian men earn more than
Black men. Clark and Drinkwater found that wide earnings deficits relative to the
White group continue to apply for ethnic minority men in particular. The largest
differentials were experienced by Black Africans, Pakistanis and Bangladeshis, and
the lowest by Chinese, Black Caribbean and Indian groups. Within occupation, the
largest earnings gaps were observed for managerial and professional workers,
suggesting that ethnic minorities find it difficult to obtain high-ranking executive
positions (Clark and Drinkwater, 2007). The Joseph Rowntree Foundation
research found that up to half of Bangladeshi workers, a third of Pakistanis and a
quarter of Black Africans were being paid less than £6.50 per hour in 2006 (Platt,
2007).
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Employment gap trends
56. The Work and Pensions Select Committee (2007) reported that on current trends
the employment rate for ethnic minorities will rise from 60.5 per cent to 65 per cent
by 2016, falling short of government targets. Nevertheless, longitudinal analysis of
employment gaps (comparing employment figures and other indicators from the
1970s to date) shows that the overall ethnic minority employment gap has
narrowed over time (Clark and Drinkwater, 2007; Heath and Yu, 2005).
57. However, the degree of convergence varies widely between ethnic minority groups
and sub groups. Clark and Drinkwater (2007), in their Census data analysis of
changes in labour market outcomes of ethnic minority groups between 1991 and
2001, found a relative improvement in the employment performance of most ethnic
minorities over the period.
The largest improvements were found to be
experienced by Black African, Pakistani and Bangladeshi men - something at least
partly attributed to the increased levels of education within these groups. This
contrasts with Berthoud and Blekesaune’s (2007) finding that Pakistani and
Bangladeshi men are worse off today than 30 years ago compared with White men,
but from a position about the same as White men in the 1970s.
58. There is more consistency in relation to the employment gap for Pakistani and
Bangladeshi women, which shows little to no improvement. As employment rates
among women and mothers of young children in particular have risen dramatically
since the 1970s, the gap between women overall and Pakistani and Bangladeshi
women, or Muslim women, in particular has grown (Berthoud and Blekesaune,
2007). Clark and Drinkwater found that the degree of convergence with the White
group was smaller for ethnic minority women overall, but particularly in relation to
Pakistani and Bangladeshi women. This was considered likely to be linked to
religion (Clark and Drinkwater, 2007).
59. A distinction is made in the literature between reduction in the employment gap and
reduction in the employment (or ethnic) penalty. Heath and Yu (2005) compared
the labour market experiences of first generation ethnic minorities to migrants in the
1970s, and second generation ethnic minorities in the 1990s with British-born
Whites from the same birth cohorts. They found that the gap in human capital (i.e.
qualification and language competency level) for the second generation had
narrowed, and in some cases been eliminated, and that this had increased ethnic
minorities’ overall chances of entering professional and managerial jobs. However,
increased human capital had not reduced inequalities in employment levels.
60. In relation to in-work employment penalties, Clark and Drinkwater (2007) found little
evidence of occupational progress among ethnic minorities between 1991 and 2001
when other factors such as education were taken into account. The only group
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found to experience much advancement was Black Caribbean men. Higher
education graduates appeared to be finding it increasingly difficult to obtain
professional or managerial jobs, with this tendency greatest for women, especially
Black Caribbeans and Black Africans.
61. In their analysis of the same Census data (1991 and 2001) Simpson et al. (2006)
found that the net disadvantage of ethnic minorities in the labour market had
become greater for men born in the UK. Their analysis used age, qualifications and
a range of family circumstances to compare like with like. Although ethnic minority
males born in the UK were found to have gained higher qualifications than their
overseas-born parents, the study concluded that the “playing field” had become
more uneven and that the ethnic penalty that remained compared to White men
was greater for many ethnic minorities born in the UK than for those born overseas.
Recommendations
National Employment Panel (2005)
•
•
Ethnic minorities are concentrated (64 per cent) in London, Birmingham,
Manchester, Bradford/Leeds and Leicester. Given limited resources, these
places should serve as the focal points for a concrete effort to increase ethnic
minority employment and business growth.
Outreach support for employability skills development and job access should be
focused on people who are not on benefits and who may have been traditionally
excluded from the labour market. A well planned and extensive outreach
programme targeted specifically at inactive ethnic minority adults and young
people, and using trusted intermediaries, should be developed as a central part
of the broader ethnic minority strategy within the five designed cities.
Tackey et al. (2006) (summarised)
•
•
•
Create employment targets for specific groups within the ethnic minority
community.
Create an additional Public Service Agreement specifically aimed at Pakistanis
and Bangladeshis (possibly by gender).
The public sector should be a leader in the recruitment of Pakistanis and
Bangladeshis. Local authorities need to review their practices, as do other
public sector organisations.
Simpson et al. (2006):
•
Workless households should be a specific policy focus. Inter-generational
worklessness exacerbates isolation from labour markets in areas of relatively
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high unemployment. Social isolation can explain some of the poor outcomes in
the labour market and initiatives are required to overcome this.
Learning and skills
62. Low human capital - that is lack of qualifications, skills and work experience - has
been found to be a major barrier to entry into sustainable employment for some
ethnic minority groups. The Ethnic Minority Employment Taskforce (2006)
highlighted the importance of education in improving the employability of ethnic
minorities, asserting that fewer than 4 out of 10 without qualifications find work. The
Leitch Review identified ethnic minorities as one of the key groups who, in general,
lack skills, and this is considered a significant barrier to employment. Low skills are
generally seen as a particular problem for the Pakistani, Bangladeshi and Black
Caribbean communities. More than 40 per cent of working age people of Asian or
Asian British ethnicity hold low or no qualifications, compared with 31 per cent of
the White population (Leitch, 2006).
63. Clark and Drinkwater (2007) considered education to be the key building block of
labour market success for all groups, and that this offers the opportunity for
government policy to improve the employment prospects of disadvantaged groups,
particularly Black Caribbean men, where drop-out rates are highest. Heath and
Cheung (2006) emphasised that, given the strong links between educational
success and labour market success, and given that educational investments have
much the same payoffs for ethnic minorities as they do for Whites, education must
be a key policy arena.
64. However much of the literature also emphasises that educational achievement is
unlikely to bridge the employment gap on its own. The Strategy Unit asserted that
all ethnic minority groups – even those enjoying relative success, such as Indians
and Chinese – are not doing as well as they should be, given their education and
other characteristics (Strategy Unit, 2003). Berthoud’s (2000) study of ethnic
minority penalties in Britain through LFS data analysis found that Caribbean men
were consistently more likely to be unemployed, whatever their educational level.
Better education did not decrease employment disadvantage completely, as
despite the fact that Indians did better in education than their White counterparts,
they did not fare as well in employment. Furthermore, although Black-Africans did
better than Indians in education they fared worse in employment.
School education
65. The proportion of pupils who get five or more GCSE grades at A*-C is much lower
amongst Black, Pakistani and Bangladeshi pupils than amongst Whites. Indian
attainment at GCSE is higher than the White population (Strategy Unit, 2003).
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However there have been improvements in the educational attainment of ethnic
minorities, with an average increase in 5 A* - C GCSE or equivalent in 2004 of 1.2
percentage points. For the Pakistani group this rose by 3.7 percentage points and
by 2.8 percentage points for Black Caribbeans (Ethnic Minority Employment Task
Force, 2006).
66. The Ethnic Minority Employment Task Force (2006) attributed these improvements
to the Aiming High strategy. This involved projects such as the Black Pupil’s
Achievement programme, regional network meetings, and collaboration between
key personnel to ensure appropriate systems are in place to raise the achievement
of Pakistani, Bangladeshi, Turkish and Somali pupils and to ensure that
programmes of English as an additional language are available.
67. Berthoud (2000) offered a sociological explanation for the differences in
employment outcomes between ethnic groups, asserting that they are based on a
pair of self-fulfilling prophecies about achievement in the education system and the
labour market. He cited research suggesting that Caribbean boys experience a selffulfilling prophecy in education and employment which contributes to the
disadvantage they face. Teachers expect them to do badly in education; the boys
themselves are aware of this expectation and end up fulfilling. Similarly, in
employment, employers are aware that these men do not typically find employment
and this discourages them from employing them (Berthoud, 2000).
Language and basic skills
68. Poor English language skills have been identified as a major barrier for ethnic
minority refugees (Tackey et al., 2006; Bloch, 2002; Work and Pensions
Committee, 2005). Work-relevant English language training has also been found to
be important for certain ethnic minority groups (Haslack and Green, 2006).
69. Bloch (2002) suggested that English language training is the principle support
needed by refugees. In a survey of refugees and asylum seekers, English language
proficiency emerged as the factor that most determined both labour market
participation and the type of employment asylum seekers and refugees had: those
without language skills were less likely to be working and those who were working
were concentrated in low skill jobs such as catering, cleaning and factory work.
English language and literacy was also the most commonly cited barrier to
employment (30 per cent), while lack of UK work experience was also a significant
factor (19 per cent).
70. Tackey et al. (2006) found that ‘human capital deficits’ are a very prominent barrier
for Pakistani and Bangladeshi groups. This research - which included a literature
and labour market review, 250 in-depth interviews, stakeholder interviews, and an
employer survey - found that Pakistanis and Bangladeshis have the lowest levels of
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English proficiency compared to other ethnic minority groups, and the lowest levels
of education and qualifications among people migrating to Britain aged 16 and over.
The study asserted that demographic and population characteristics –
concentration in areas with low employment growth, small proportions born in
Britain, younger age structure and larger families than other ethnic groups, and
greater likelihood of living in households with large occupancy – have had a major
impact on the British Pakistani and Bangladeshi population’s human capital
development.
71. The Work and Pensions Select Committee (2007) reported that in some areas of
the country there is a shortage of English for Speakers of Other Languages (ESOL)
provision. The Committee asserted that this, along with the removal of some of the
existing entitlement to free ESOL training, will have consequences for ethnic
minorities, for many of whom improving English skills is an important step towards
employment.
Recommendations
Bloch (2002):
•
•
•
•
•
•
•
•
Employers need more information about overseas qualifications and the
legislation regarding the right to work.
Work placement opportunities would enable refugees to use their skills and
experiences in the UK labour market to gain UK experience that can then be
used as evidence of work experience.
Course providers need to improve their awareness of the refugee experience
and provide more student support.
English language provision needs to be increased by having more contact
hours, longer courses and more courses.
There should be some English language training that is job specific, so that jobrelated technical language is learned, as well as some language training that is
specific to the needs of job seekers.
Course providers could employ English language teachers from refugee
communities.
Specialised training could be provided for refugees so that they can use their
skills and qualifications in the UK labour market.
Provide childcare on English language and other training and education
courses where needed, to ensure that refugee women are not excluded.
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Green et al. (2005):
•
•
Work relevant English language training is essential and some migrants also
have basic skills needs.
The ‘ideal’ situation is tailored provision to meet individual need. However, this
has significant funding requirements.
Heath and Cheung (2006) (summarised):
•
Improved careers services at schools, further education colleges and those
universities where ethnic minorities are over-represented may be helpful.
International Centre for Migration Policy Development (2003):
•
More emphasis needs to be placed on the special educational needs of
migrants and minorities; and a system needs to be developed for the
recognition of non-EU qualifications.
Leitch (2006):
•
•
•
•
Employers, individuals and the government must take shared responsibility for
investment and action around skills.
The skills which people acquire need to be labour market focused and
economically valuable, and meet the needs of individuals and employers.
Skills systems need to be adaptable and able to respond to changes in the
labour market.
Improvements should be made to the current system. It is important to ensure
continuity and not chop and change the skills system.
National Employment Panel (2005):
•
An integrated, employer-led employment and skills framework should be
established in each of the designated cities to increase the number and quality
of jobs for ethnic minorities and disadvantaged residents.
Simpson et al. (2006):
•
Mainstream training provision and employment programmes should focus on
the populations with the greatest disadvantage in the labour market. The most
disadvantage is faced by Pakistanis and Bangladeshis. African and Black
Caribbean populations also experience high levels of unemployment.
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Strategy Unit (2003) (summarised):
•
•
•
Improve transparency of existing data on the educational achievement of ethnic
minorities.
Collect and analyse more data and include ethnicity in educational performance
targets.
Improve information and training for teachers in terms of how to successfully
teach diverse intakes of pupils; ensure that best practice is effectively promoted
and used.
Tackey et al. (2006) (summarised):
•
•
•
•
Investment to help improve the acquisition of skills and confidence to enter the
labour market for the kinds of jobs that are now available.
A need to create training opportunities to help people run businesses better business growth advice would be useful. It is important that initiatives are in
ethnic minority communities.
Voluntary and community organisations should be incorporated fully in
structures and initiatives to improve English provision.
Bridge relationships in places that provide training and skills, as well as
awareness and knowledge about employment and job opportunities.
Work and Pensions Select Committee (2007):
•
A higher priority should be given to making ESOL training available to ethnic
minorities for whom it would increase chances of finding work. The Government
should monitor the success of this provision.
Geography
72. Several studies cite structure of employment and geographical location as barriers
to employment for all ethnic minority groups. The Strategy Unit (2003) noted a
tendency for ethnic minorities to be clustered in certain geographical areas which
have high levels of deprivation and additional barriers such as poor transport.
73. Berthoud (2000) contended that changes in the employment market have meant
that ethnic minorities, who tend to be concentrated in inner cities, cannot find
employment because these areas now require skilled workers. He further argued
that:
•
Semi-skilled jobs that remain are now more likely to be service sector jobs often
not suited to the skillsets of those formerly employed in manufacturing.
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•
•
•
Ethnic minorities are concentrated in areas of high unemployment and this
affects their propensity to be in work.
Ethnic minorities tend to work in industries in which they are more likely to
experience falls and rises in employment.
Ethnic minorities’ experience of employment tends to be hypercyclical, meaning
employment falls more than average during slumps and rises faster during
economic booms.
74. However, Simpson et al. (2006) challenged the connection between geographical
concentration and unemployment. Their analysis of 1991 and 2001 Census data
indicated that differences between ethnic minorities are larger and more important
than differences between areas. According to their findings, in areas that are
predominantly White ethnic minorities are still twice as likely to be unemployed than
their White counterparts: the employment rates of Africans, Caribbeans, Pakistanis
and Bangladeshis were considerably lower than the average White Briton
employment rate in these areas. They therefore concluded that a focus on socalled residential segregation will not reduce labour market inequalities.
Recommendations
Simpson et al. (2006):
•
Labour market disadvantage is evident regardless of the types of
neighbourhood in which people live. Ethnic inequalities remain equally large in
areas away from the larger concentrations of ethnic minority populations. There
is a need to focus policies on particular populations rather than targeted areas,
and to include locally tailored policies to tackle discrimination.
Religion and culture
75. As Clark and Drinkwater (2007) noted, “it is difficult in this context [of ethnic
employment penalties] to disentangle the effects of religion and ethnicity” .
Nevertheless they and several other researchers have suggested that employment
penalties among ethnic minority women are more to do with religion than ethnic
group. Pakistanis and Bangladeshis (who are mostly Muslim) have only slightly
larger employment penalties than other Muslim groups, including Indian and White
Muslims. In comparison Buddhist, Sikh and Hindu women have significantly higher
employment rates (although still low relative to the national average) (Berthoud and
Blekesaune, 2007). Among men, however, both religion and ethnic group have
been found to predict employment penalties.
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20
Recommendations
Clark & Drinkwater (2007) summarised:
•
•
Although religion appears to exert an important influence on labour market
outcomes, this is a complicated area for policy makers and further research is
needed. The situation of some groups could be improved with targeted.
resources and greater sensitivity towards certain aspects of tradition and
culture, such as in the provision of childcare and job-search assistance.
The differential impact of local socioeconomic conditions by ethnic group
suggests a targeted approach to policy making in this area.
Open Society Institute (2004) (summarised):
•
•
•
A cross-departmental approach would improve the delivery of services Muslims
living in deprived areas.
The Connexions and Careers Service have an important role in raising labour
market aspirations and providing support to Muslim communities.
Muslim women would benefit from work experience opportunities.
Gender and family responsibilities
76. Tackey et al. (2006) identified some personal characteristics as barriers to
employment for Pakistanis and Bangladeshis. Gender was a very important
influence on labour market outcomes. Pakistani and Bangladeshi womens’ lower
economic activity rates despite age, education, marital status and English
proficiency, was partly attributed to the fact that many women, give primacy to
family life. However, in-depth interviews revealed that both men and women were
positive about work. Women often wanted to gain freedom and independence,
whilst men wanted to be financially secure and provide for their family. Women
nonetheless face significant barriers to work because of household gender roles,
such as childcare and caring responsibilities.
77. For Black Caribbeans family type and work status affect susceptibility to poverty,
especially considering the prevalence of lone parents (Palmer and Kenway, 2007).
Single Caribbean men are twice as likely to be unemployed as those who are
married or living with a partner. Some of the literature indicates that a process of
alienation negatively affecting the employment experience of Caribbean boys
begins at school when they build up resentment of negative images that people
have of them and when they are denied jobs because of their ethnicity. This has
resulted in the adoption of an alternative lifestyle which displays a resentment of the
social structure and can put them in conflict with the police – further affecting their
chances of finding employment (Berthoud, 2000). A high prevalence of single
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21
parents has a similar but lesser impact in the Black African community (Kenway
and Palmer, 2007).
78. There are also indications that women or girls from certain groups feel that they
have restricted employment opportunities. The EOC’s survey of 800 Bangladeshi,
Pakistani and Black Caribbean 16-34 year old women found that two-thirds of
Bangladeshi and Pakistani 16 year olds felt that their race, gender or faith meant
they cannot apply for certain types of jobs, in comparison to a third of White British
girls and just over half of Black Caribbean girls (EOC, 2007).
79. Lone parents from ethnic minorities are less likely to access childcare or other
related support. Through interviews with 61 lone parents, Pettigrew (2003)
identified the key barrier in minority ethnic lone-parents accessing childcare, and
thus employment, as being a negative perception of available childcare.
Respondents widely considered childminders to be unacceptable, but nursery care
acceptable. Other issues were the perceived high financial cost, lack of availability
and flexibility, and a belief that the child was not old enough to be left in childcare.
Those from Asian backgrounds tended to be averse to having anyone outside their
family looking after their children. For the majority of female Asian lone-parent
respondents it was culturally unacceptable to work whilst married, and continued to
be so when their partner had left.
Recommendations
Equal Opportunities Commission (2007) (summarised):
•
•
•
•
Government should develop a culturally intelligent public policy, taking account
of the gender and generational differences within ethic minorities,,including
larger family sizes, those with caring responsibilities, and lone parents.
Using educational policies to improve ethnic minority employment opportunities
may benefit ethnic minority men but not ethnic minority women because they
already have high levels of educational achievement.
To ensure that issues facing Bangladeshi, Pakistani and Black Caribbean
women are dealt with, they should be given representation on boards of public
bodies. City Strategy Partnerships and local Strategic Partnerships have
particular responsibility for this.
Gender must become an integral part of the strategy on race. Likewise, race
and faith must be integral to the strategy on gender equality.
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22
Open Society Institute (2004) (summarised):
•
Affordable formal child care which takes into account the specific religious and
cultural needs of Muslims.
Tackey et al. (2006) (summarised):
•
•
Provision of ethnically sensitive childcare.
Encouragement for greater socialisation for women, (e.g. through community
centres) to bring people together to learn how the labour market works.
Enterprise
80. Self-employment is an important form of economic activity for ethnic minority men
in the UK (Clark and Drinkwater, 2007). The percentage is highest for Pakistani
men, higher than average for Indian, Chinese and Other-Asian men, but lower than
average for Black ethnic group men (Owen, 2000).
81. Longitudinal analysis shows some convergence in self-employment rates between
ethnic groups. In particular, Chinese and Indians had lower rates of selfemployment in 2001 compared with 1991. This is consistent with secondgeneration Chinese and Indians choosing not to follow their parents into business,
and instead finding employment in the paid labour market. In contrast, Pakistanis
and Bangladeshis experienced no such decline in self-employment rates despite
having similar demographic characteristics (Clark and Drinkwater, 2007).
82. Factors leading to ethnic minorities entering self-employment are sometimes
characterised as ‘push’ – a response to barriers or discrimination – or ‘pull’ – for
example existence of ‘ethnic enclaves’ which provide self-sustaining economic
environments (Clark and Drinkwater, 2000). Clark and Drinkwater (2000) used
statistical modelling based on data from the Fourth National Survey of Ethnic
Minorities to determine the key reasons behind the high proportion of ethnic
minorities in self-employment in England and Wales. Push factors - specifically
wage discrimination - had an important influence on self-employment levels.
However pull factors, such as the availability of informal loans within certain ethnic
minority groups, also had a role. The study also found that:
•
•
•
Members of ethnic enclaves are less likely to be self-employed.
Those with poor English language skills are less likely to be self-employed.
Religious denomination and devoutness are not significant factors in
determining the likelihood of self-employment.
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23
Recommendations
Clark and Drinkwater (2007):
•
The quality as well as quantity of self-employment among ethnic minorities is
important and policy must reflect this.
Strategy Unit (2003) (summarised):
•
The Small Business Service must increase levels of awareness amongst ethnic
minority entrepreneurs.
Work and Pensions Select Committee (2007):
•
As well as working to improve the employment of people from ethnic minorities,
Jobcentre Plus should promote self-employment as an option.
Ethnic penalties and discrimination
83. Ethnic penalties are differences in employment status that remain after taking
account of other barriers to employment such as human capital and geographical
location (Simpson et al., 2006). The Home Office Citizenship Survey offered some
quantitative measure of ethnic penalties, with analysis of the 2003 data leading
Heath and Cheung (2006) to conclude that unequal treatment on grounds of race or
colour is likely to be a major factor underlying the pattern of ethnic penalties.
Levels of self-reported prejudice were found to be significantly lower in the public
administration, education and health sectors than elsewhere, and were significantly
higher in manufacturing, construction and transport (Heath and Cheung, 2006).
84. Wrench and Modood (2000) identified key features of the ethnic penalty in the UK,
as identified in research, job application and interview tests and gatekeeper studies:
•
•
•
•
Candidates can be rejected at the first stage of job application for having an
Asian name or coming from a non-White background.
Ethnic stereotypes and prejudices on the part of employers.
Perpetuation of inequalities by employment agencies by predicting the rejection
of ethnic minority candidates and so avoiding putting them forward for jobs.
Members of ethnic minority groups themselves are aware of the potential for
discrimination and this constrains their job-seeking.
85. Platt (2007) attempted to identify the level of ethnic penalty faced by each main
ethnic minority group. Despite high levels of qualifications, Black Africans were not
achieving the employment outcomes that would be expected for such qualifications.
Indians were also identified as facing a penalty relative to their employable
characteristics. Taking account of characteristics was found to reduce the
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24
employment gap for Pakistanis and Bangladeshis, but a substantial ethnic penalty
was still found. This was particularly the case for Pakistanis, who seemed to face
more intractable ethnic penalties.
86. Carmichael and Woods (2000) conducted a regression analysis of LFS data using
‘maximum likelihood’ methods to uncover the reasons behind the ethnic penalties
they had found. Actual occupational distributions by ethnic group were compared
to predicted occupational distributions after dropping the ethnic variables from the
equations. This comparison was used to show how the removal of discrimination
might be expected to change the occupational distributions within ethnic groups.
The figures suggest that without discrimination there would be more ethnic
minorities in professional and intermediate non-manual occupations, particularly
ethnic minority men (10.7 per cent, 5.2 per cent and 5.5 per cent increases were
predicted for Black, Indian and Pakistani and Bangladeshi males respectively).
Carmichael and Woods concluded that the most significant variable in explaining
the existence of ethnic penalties is the prevalence of discrimination in employment
selection processes.
87. This issue is the subject of a DWP report by Roberts and Campbell (2006) which
analysed job interviews to understand the discourse practices of interviewers and
candidates, and to determine whether ethnic minority candidates are systematically
disadvantaged in interviews because of culturally-specific practices. The research
did not uncover any direct discrimination on the basis of ethnicity but did find that
the interview ‘game’ contains implicit cultural expectations around presentation,
understanding and communication which could lead to misunderstanding and incur
a ‘linguistic penalty’. Competence frameworks and equal opportunities legislation
were found to shape interviewer practices in a way which worked against the
interests of ethnic minorities:
•
•
Competence frameworks resulted in hidden assumptions within interview
questions which required a high level of analytical ability and communicative
competence.
The requirements imposed by anti-discrimination legislation and equal
opportunities interview frameworks meant that interviewers were constrained
from helping candidates whose style of communicating and expectations were
different from theirs.
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25
88. As Tackey et al. (2006) noted, “the impact of direct or indirect racial discrimination
on the labour market chances of minority ethnic groups is notoriously difficult to
quantify. However, the prevailing assessment in the literature is that significant
ethnic discrimination persists and is likely to play a significant part in continuing
employment gaps. Some experts surveyed claimed that indirect discrimination
(often committed without the employer realising) was also widespread. Potential
indirect discrimination was identified in recruitment practices such as using internal
vacancies, word-of-mouth, or by advertising only in national and regional English
newspapers: all resulting in vacancies only reaching certain (mainly White) sections
of the community (Tackey et al., 2006).
89. Tackey et al. (2006) asserted that the ethnic penalty is most severe for Pakistanis
and Bangladeshis, especially women. Their interviews with Pakistanis and
Bangladeshis and surveys of stakeholders and employers revealed that
employment opportunities were lessened and limited by employer attitudes, and
discrimination - such as assumption of language or basic skills issues or that
religious practices would lead to lower productivity - exacerbated by growing
Islamaphobia in the wake of September 11. There was felt to be enormous
variation in the extent to which employers had equal opportunity policies in place,
and in the extent to which they were actually put into practice.
90. The EOC’s 2007 report on the labour market position of Pakistani, Bangladeshi and
Black Caribbean women concluded that the main reason for these groups’
difficulties in the labour market was a backward thinking organisational culture that
fails to recognise and support cultural differences. The report identified a lack of
awareness and ‘cultural intelligence’ in the workplace as well as apprehension over
dealing with race and faith, causing a lack of communication with Pakistani,
Bangladeshi and Black Caribbean women. The investigation also found that
widespread ignorance about Bangladeshi, Pakistani and Black Caribbean cultures
meant that women from these cultures face constant stereotyped comments.
Furthermore, some overt racism was also found, whereby employers actively
prevented women from these cultures from gaining an interview for a job, even
when they were qualified (EOC, 2007).
91. The general assessment on the effectiveness of anti-discrimination measures
appears to be largely negative. Wrench and Modood’s (2000) review of the
relevant literature in this area discovered a mixed experience in terms of the
implementation of anti-discrimination policies. In general, relatively few companies
were found to have serious plans for implementing racial equality strategies. Equal
opportunities plans and diversity management were found to be relatively
ineffective in terms of improving the employment experiences of the most
marginalised.
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Recommendations
Carmichael and Woods (2000) (summarised):
•
•
Anti-discrimination legislation needs to be more forcibly directed towards
selection practices.
The scope of anti-discrimination legislation needs to be widened to deal with the
barriers to employment faced by some ethnic minority groups.
Clark & Drinkwater (2007):
•
Labour market discrimination is apparently deep-rooted, widespread and
persistent. There may be scope for the introduction of more interventionist, antidiscrimination policies in the workplace.
Heath and Cheung (2006) (summarised):
•
•
•
It is important to recognise that ethnic minorities’ difficulties in obtaining
employment are not restricted to those with low levels of education and training.
They face difficulties regardless of their level of education. If discrimination is
believed to be a major factor in ethnic penalties, then policies aimed at
employers, instead of focusing solely on education, will be necessary.
The differences between public and private sector workforces needs to be
addressed. A possible recommendation is to strengthen and monitor the Race
Relations Act 2000 in the public sector. A more rigorous scheme of ethnic
minority monitoring, and enforcement procedures, with rigorous evaluation
might give a sound evidence base for deciding whether or not to extend
provisions to the private sector and help remedy some of the disadvantages still
apparent in the public sector.
Pilot schemes might also be developed and evaluated with particular public
sector bodies. It might be appropriate to develop voluntary experimental
schemes for ethnic monitoring or to develop monitoring schemes for private
sector companies that win public sector contracts. Monitoring schemes may
have an important role in helping employers recognise where their equal
opportunities policies are failing, and encourage them to address weaknesses.
Open Society Institute (2004) (summarised):
•
There is a need for policy makers to be aware of how cultural norms impact on
labour market integration. Alongside this policy should work to tackle the
prejudice and stereotypes which emerge from a lack of understanding of Muslim
cultures.
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Roberts and Campbell (2006):
•
•
The linguistic penalty means that certain groups of ethnic minority job seekers first generation and relative newcomers especially - should be given training
focused on their needs, including an understanding of the hidden rules of the
interview ‘game’, detailed guidance in self-presentation and how to manage
their foreign work experience.
Interviewers should be given training which focuses on the difficulties
candidates face as well as on developing their own interaction skills. There
should be awareness-raising on how to take account of linguistic and cultural
differences so ‘poor English’ is not used as a general reason for rejecting a
candidate. They would also benefit from further training on the full implications
of the law on indirect discrimination for their interviewing practices, in relation to
foreign work experience and equivalences between foreign and British work
experience. Guidelines should be circulated to employers which make clear
what might constitute discriminatory interviewing, and how to tackle this in
training and practice.
Strategy Unit (2003) (summarised):
•
•
•
•
There needs to be an expansion of services currently supporting best practice
in equal opportunities.
The Government should consider whether to give Employment Tribunals more
freedom to make recommendations on the causes of discrimination beyond
individual cases.
There needs to be increased support for campaigns which promote equal
opportunities in society.
The Government needs to develop guidance for public authorities about how to
use public procurement as a method of changing employment practices of
contractors.
Work and Pensions Select Committee (2007):
•
•
DWP should publish an updated strategy, underpinned by evidence of the costs
and effectiveness of its proposals, setting out how it plans to reduce
discrimination of all types.
DWP should ensure that its own procurement sets an example to other public
bodies in setting high standards for equal opportunities policies in the firms with
which it contracts. Promoting racial equality should be one of the priorities of the
new “centre of excellence” in procurement. We recommend that if public
procurement proves to be a useful tool in improving racial equality, all public
bodies should adopt a similar approach to procurement. We also recommend
that the DWP set out what further approaches it would consider to promote
racial equality.
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Wrench and Modood (2000):
•
•
Direct measures, such as race relations legislation, should be combined with
indirect measures such as legislation allowing union recognition and the
enforcement of minimum wage policy.
The full and fair integration of ethnic minorities into the labour market can only
be achieved through the combination of legal and administrative measures,
voluntary policies and pressure on organisations from the collective actions of
workers.
Equality and diversity in the workplace
92. There is broad recognition that demographics (growing numbers of ethnic
minorities and migrants in the working age population) mean that organisations will
increasingly be compelled to promote race equality and tackle discrimination
(Gallagher and O’Leary, 2007; Task Force on Race Equality and Diversity in the
Private Sector, 2004). Gallagher and O’Leary (2007) asserted that it is important
for employers to remain aware of the wide variations in skills and achievement in
the ethnic minority community in order to ensure that, as organisations become
more ‘diverse’, they do not leave certain groups behind. However, the report
questioned the business case for diversity by pointing out that although employing
a more diverse workforce might be beneficial to businesses, achieving it in practice
can involve a significant amount of time, effort and money. They therefore
contended that, for a number of organisations, the costs of recruiting for diversity
outweigh the benefits.
93. Other sources, however, stress the wider and long-term benefits of greater
workforce diversity for businesses and society (Task Force on Race Equality and
Diversity in the Private Sector, 2004). Despite their doubts over the short-term
business case, Gallagher and O’Leary concluded that given the importance of
diverse workplaces in terms of social justice, representation and social cohesion,
policy measures needed to address the mismatch in terms of the costs and benefits
of diversity for recruiters. They found that legal measures, such as discrimination
legislation, have had some positive effects in terms of promoting diversity. Appeals
to an organisation’s sense of ‘social responsibility’ had also had some effect.
However the report contended that neither have been enough to make significant
progress in this area.
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29
94. The Fair Cities initiative represents a major attempt to push forward the equality
and diversity agenda. This initiative was created after an international study by
Jobs For the Future (2004) into effective employer-led efforts around ethnic minority
employment. The report concluded that the involvement of employers is vital to the
success of workforce initiatives and identified several key strategies for attracting
businesses to take part in schemes, including:
•
•
•
Attracting employers with skills shortages, as they are more likely to be
attracted to schemes that would provide them with labour.
Link workforce development initiatives to economic development efforts – public
finance or regulated infrastructure projects represent a good opportunity to get
jobs for ethnic minorities.
Overcoming employer prejudice through allowing employers to test new
employees through internships and ‘temp to perm’ arrangements.
95. The report also stressed the role of the voluntary and public sectors in workforce
initiatives.
Recommendations
Gallagher and O’Leary (2007) (summarised)
•
•
•
The government should adopt a more systematic approach towards generating
diversity in recruitment and the workplace. The overall goal should be to help
businesses become as open and inclusive as possible.
Interventions designed to overcome diversity issues should be clear about their
own rationale for promoting diversity.
Businesses need to be given support to create more diverse workforces. The
nationwide network of sector skills councils, which cover 85 per cent of the
British workforce, are best placed to take on this role.
National Employment Panel (2005) (summarised):
•
•
New Centres of Vocational Excellence (CoVEs) for entrepreneurship should be
established. Consideration should be given to the implantation of practical
business support through shared back-office incubation facilities, within the
CoVEs or under separate private sponsorship.
Regional Development Agencies should assess the needs of ethnic minority
businesses as part of their Regional Economic Strategies. Regional
Development Agencies should undertake a comprehensive stocktake of all
business support services that are available in their region, including Business
Link, to determine comparative performance and value for money.
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30
•
•
•
•
•
•
•
•
•
•
The Small Business Service should work with banks and financial
intermediaries to review the availability and accessibility of finance for ethnic
minority firms in the designated cities.
The public sector should become a role model of best practice in promoting
race equality and diversity, and should fulfil its public duty through improved
targets and measurement and evaluation, with departments reviewing their use
of Race Equality Impact Assessments. The government should establish
transparent targets, measurement tools and public reporting systems at both a
national and local level.
The government should promote the incorporation of race equality into public
procurement within the current legal and policy framework.
A commission of business leaders should be charged with advising on
increasing employment of ethnic minorities and faith groups in the private sector
by 2010. Chief executives should use their corporate procurement powers to
provide incentives to their supply chains in adopting effective race equality
practices.
Task Force on Race Equality and Diversity in the Private Sector (2004)
(summarised):
The government needs to ensure businesses are aware of the advantages of
ensuring race equality in their employment practices and know where to go for
advice and support. The government should give clear, consistent and coordinated messages to business and the public sector on the issue of race
equality.
Companies should appoint a champion of race equality on their boards to
connect race equality strategies to overall business objectives. Change should
be driven throughout the organisation, challenging negative attitudes and
making managers accountable for change.
The government should demonstrate effective leadership on race equality
through a coherent strategy co-ordinated through a cross-departmental
structure.
Businesses should mentor and provide resources for their suppliers to
implement their own systems of ‘good practice’ on race equality.
Government should ensure one-to-one advice is available to businesses that
need help further implementing race equality agenda. The CBI and the
government should create a one-stop-shop for businesses seeking advice on
race equality issues in the right direction and provide case studies which
highlight good practice.
Businesses should aim to only use suppliers with effective race equality
practices.
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•
•
•
•
•
•
The government should adhere to the Race Relations (Amendment) Act 2000,
ensuring suppliers enact high standards of race equality in their workplace
practices..
The government should promote regional and local awards schemes which
provide direct business benefits to small and medium enterprises showing
evidence of commitment to race equality.
The government should set a recognised kite mark which sets standards for
race equality in recruitment, retention and promotion.
All companies with more than fifty employees should publicly report on race
equality and diversity.
The government should report annually progress and host an annual
Leadership summit on race equality and business to measure the extent
businesses are working through the equality agenda.
If these recommendations fail to implement change the government should
consider legislation for businesses to effect positive action on race equality in
employment.
Work and Pensions Select Committee (2007):
•
•
The DWP and the DBERR should work with businesses to promote the
advantages of a diverse workforce, and encourage them to review their
recruitment policies to ensure that they offer equal opportunities. The
Government should also charge the new Commission for Equality and Human
Rights with providing clear guidance to employers on their responsibilities.
The Government should make clear in what circumstances it would consider
extending to the private sector the duty to promote racial equality.
The Department for Work and Pensions’ programmes and
services
96. The Department has been key in providing employment opportunities for
disadvantaged groups through its employment services. Active labour market or
welfare-to-work policies have been adopted to encourage the unemployed or
inactive to (re)enter employment, notably through the various New Deal national
programmes, as well as through pilots and initiatives such as Employment Zones,
Action Teams, the Working Neighbourhoods Pilots, StepUP and Pathways to Work.
There have also been a number of initiatives designed to focus on ethnic minorities
such as Ethnic Minority Outreach and Specialist Employment Advisers. More
recently the Department has focussed on wider area based programmes aimed at
disadvantaged groups generally..
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Jobcentre Plus service delivery
97. The Work and Pensions Select Committee conducted an inquiry in 2005 taking
evidence from organisations and local groups on the standards of services to ethnic
minority clients (Work and Pensions Select Committee, 2005). Most of those
submitting evidence to the inquiry criticised many aspects of Jobcentre Plus’
service delivery to ethnic minorities.
98. There was found to be a ‘cultural gap’ between ethnic minority clients and many of
the Jobcentre Plus staff delivering services to them, and it was argued that staff
often show a lack of cultural sensitivity in dealing with ethnic minority clients and fail
to understand how culture affects the way in which services might need to be
delivered to them. The problems faced by some ethnic minorities, and refugees,
who have difficulties in understanding English, were widely identified as a
substantial barrier to accessing Jobcentre Plus services.
99. The Refugee Council expressed a concern that Jobcentre Plus staff lacked
knowledge of asylum and immigration issues and that this resulted in poor quality
advice, creating a barrier to claiming benefits and moving into employment.
100. In their Year 1 progress report, the Ethnic Minority Employment Taskforce
(2004) asserted that, despite previous recommendations and efforts to engage
ethnic minorities in government employment programmes and services, some
ethnic minorities remained alienated from mainstream services and outside the
labour market. The Taskforce emphasised the need for the Government to find
further and better ways to reach people who do not use the service offered by
Jobcentre Plus.
101. From interviews with 2,018 ethnic minority Jobcentre Plus customers and a
comparison of responses with those of White respondents to the National Customer
Satisfaction Survey (Johnson and Fidler (2006) found that ethnic minority
customers gave somewhat lower performance ratings in relation to almost all
aspects of service than did their White counterparts. Although overall more ethnic
minorities than whites felt service had improved, more Mixed and Black Caribbeans
felt the service had got worse.
102. Customers across all ethnic minority groups are more likely than White people
to visit Jobcentre Plus to search for or to enquire about vacancies and/or to attend
a discussion with an adviser (Johnson and Fidler, 2006). Evidence suggests that
ethnic minority customers in general place importance on aspects of human
interaction and the friendliness of Jobcentre Plus staff (Haslack and Green, 2006;
Johnson and Fidler, 2006). Staff attitudes have been found to be the most common
cause for potential or actual complaint across all ethnic groups (Johnson and Fidler,
2006). Alongside general friendliness and politeness, ethnic minority customers
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have been found to particularly value the following (relative to White customers)
(Johnson and Fidler, 2006):
•
•
•
Members of staff wear a badge or tell customers their name.
The speed at which business is dealt with.
The availability of help for people who have difficulties with English.
103. According to Johnson and Fidler (2006), Black Caribbean customers and
people of mixed race are the most likely to have considered making a complaint
about Jobcentre Plus services in the previous year. Black customers were most
likely to feel that there was no point making a complaint because nothing would be
done about it. The study also found that ethnic minority customers are in general
less aware of the Customers’ Charter than are White customers, with particularly
low levels of awareness among Black Africans, young Black people and women
across all groups. Dowson et al. (2004) reported very low awareness of the
Charter across other Jobcentre Plus customer groups as well.
104. Several sources identify language support as a key area in which Jobcentre
Plus provision could improve. Hudson et al. (2006) identified access needs for
Jobcentre Plus service delivery around language support, including gaps in
interpreting support, written information in other languages, ensuring that ESOL
classes in length and content bear a closer relation to customer needs and include
women-only courses. Jobcentre Plus has also been criticised for failing to realise
which clients were in need of language support: in their evidence to the Work and
Pensions Select Committee (2006) the Citizens’ Advice Bureau stated that
Jobcentre Plus officers have a tendency to refer clients in need of an interpreter to
them, putting considerable cost burden on the organisation.
105. Hudson et al. (2006) conducted a qualitative study into ethnic minority
perceptions and experiences of Jobcentre Plus, involving interviews with 84 ethnic
minority and 31 White customers, 27 Jobcentre Plus district office and front-line
staff and 16 employers in four districts across Scotland, Wales and England.
Respondents reported very mixed experiences of Jobcentre Plus use, suggesting
considerable inconsistency in the level of service received by customers across
districts and offices. Satisfaction and dissatisfaction with Jobcentre Plus did not
appear to be shaped primarily by ethnic group, but more by customer grouping.
New Deal for Lone Parents (NDLP) customers, expressed the most favourable
views. New Deal for Young People (NDYP) customers expressed the greatest
dissatisfaction with Jobcentre Plus services.
106. While most of the advisers interviewed perceived that ethnic minority customers
encountered discrimination in the labour market, Hudson et al. (2006) found a lack
of customer awareness of the Jobcentre Plus discrimination procedure and, for
their part, few advisers had used the discrimination procedure or seen any
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guidance on it. The study concluded that this produced an advice and support gap
which implicitly constrained the scope for challenging employers when
encountering or suspecting discrimination. Although customer respondents felt
that, overall, Jobcentre Plus’ power to take action on discrimination was a good
thing, there was some scepticism about whether staff cared enough to support
customers. The authors considered this suggestive of a need to increase
confidence in, as well as awareness of, the system.
Recommendations
Work and Pensions Select Committee (2005) (summarised):
•
•
•
•
•
•
A larger range of translated material should be made more widely available;
translated material should be updated frequently and put on public display.
Urgent and fundamental re-consideration by Department of:
a) Its plan to address the language needs of clients;
b) The services it offers to assist clients needing language support; and
c) Its plan to improve awareness amongst senior management.
Development of a language marker on appropriate IT systems to identify clients
needing ongoing language support; give clients the option of requesting that
they receive correspondence in the language of their choice.
Further reform of the current staff language allowance, differentiating between
frequent and casual users.
(Concerning planned staffing cuts and relocations outside London). Conduct an
audit of the languages spoken by staff in London together with an impact
assessment of the staff efficiencies by 31 December 2005; and develop a
strategy by 1 October 2006 to ensure that clients in London who require
language support are not disproportionately and adversely affected by the
staffing efficiency measures.
Increased support for specialist voluntary sector and not-for-profit organisations
providing tailored training courses for refugees to help them compete in local
labour markets.
Bloch (2002):
•
Jobcentre Plus to disseminate information about employment rights through
refugee community organisations to ensure awareness about basic entitlements
such as the National Minimum Wage.
Haslack (2006)
•
A holistic approach to provision.
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•
•
•
•
Personal Advisers (PAs) play an important role as regards the best timing of
provision, and need to be given greater flexibility to meet the needs of
customers.
PAs need to understand workless people and their communities alongside local
employment patterns and businesses.
Jobcentre Plus needs to engage effectively with customers, and customers
need to ‘buy in’ to any provision they are referred to.
Jobcentre Plus needs to actively engage with employers to make provision
more effective.
Hudson et al. (2006) (summarised):
•
•
•
Jobcentre Plus needs to continue to build on recent efforts to cultivate greater
consistency in standards of service provision alongside developing flexibility in
provision.
There is a need to raise awareness and understanding of the Jobcentre Plus
discrimination procedure among customers and staff.
There is scope for greater working with employers on diversity issues.
Strategy Unit (2003) (summarised)
•
Jobcentre Plus needs to develop closer collaboration with local housing,
training and employment initiatives in order to address the concentration of
ethnic minorities in deprived areas.
Administration of Benefits
107. Key areas of criticism in relation to the administration of benefits cited in the
Work and Pensions Select Committee’s report on the Department’s service
standards for ethnic minorities included (Work and Pensions Committee, 2005):
•
•
•
•
Citizens Advice Bureau reported that errors and lost papers, delays in
processing claims, confusing letters about benefits and inaccurate advice were
often more intense for ethnic minority clients.
The Social Fund was identified as a problematic area for ethnic minority
applicants, with Asian families the least likely to apply for help.
The ‘habitual residence’ test, in which people who have travelled abroad must
prove that they intend to make a temporary or permanent home in the UK in
order to claim benefits, was also identified as disproportionately problematic for
ethnic minorities.
Ethnic minority older people may not meet Identification requirements when
claiming benefits. and there is some reluctance among staff to explore
alternatives.
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•
Stopping benefit payments if the claimant spends more than four weeks abroad
can be particularly problematic for ethnic minority older people as the cultural
norm may be to spend a much longer period away.
108. Lack of awareness of the benefits that are available plays a key role in
preventing ethnic minorities from taking them up. Evidence suggested that younger
ethnic minorities were becoming less likely to explain benefit systems to older
members, and the reliance of Jobcentre Plus on this method of dissemination was
becoming increasingly unfounded. Jobcentre Plus staff often allow children and
grandchildren to translate and interpret, and this could often lead to confusion,
mistakes and embarrassment.
109. Barnard and Pettigrew (2003), in their research into barriers for taking up
benefits among older ethnic minorities older people, found that they and those who
worked with them, emphasised that staff attitudes, how they were treated, the
benefit office environment, and how language barriers were tackled, greatly
affected older people’s overall attitude to claiming, and to having further contact
with Government services. The report identified three main barriers:
•
•
•
Language and literacy.
a lack of trust in and comprehension of statutory services, and apprehension.
Lack of knowledge of benefits or the benefits system.
110. Other barriers for ethnic minority older people included concerns about the
impact of claiming on residency status, and difficulties arising from not having a
National Insurance number (this particularly affected Asian women).
Recommendations
Barnard and Pettigrew (2003) – for tackling barriers to benefit take-up for ethnic
minority older people (summarised):
•
•
•
•
A specific strategy for each community aimed at understanding and providing
services tailored for them is essential. Strategies are most effective when
developed in partnership between DWP, the local authority and the voluntary
and community sectors.
Outreach and the provision of face-to-face services are central to increasing
take-up.
Older people and advice workers wanted the whole system to be simplified.
Extend outreach work beyond the most obvious community groups; introduce
language-specific helplines and leaflets to make contact.
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Work and Pensions Select Committee (2005) (summarised):
•
•
•
•
•
•
•
Habitual residence test and the Social Fund discretionary decisions should be
made subject to ethnic monitoring to establish whether there is a differential
impact upon ethnic minorities.
Review the identification requirements needed to pursue a benefit claim and
ensure that staff are fully trained in them.
Examine the option of suspending rather than cancelling payment of benefits
while abroad.
A breakdown of take-up of means tested benefits by pensioner households
should be provided by ethnic group.
Research on the estimates of eligibility for Attendance Allowance and Disability
Living Allowance should look specifically at ethnic minorities.
The Pension Service should evaluate awareness among ethnic minority
pensioners accessing the Pension Service locally and determine whether the
arrangements in place are adequate.
Local partnership schemes are essential to the success of the Pension Service.
Areas with higher-than-average ethnic minority populations should get
additional resources and support for partnership development.
Welfare-to-work in general
111.
The National Employment Panel (Jobs for the Future, 2004) identified three
broad categories of services that enable ethnic minority employment initiatives to
be effective:
•
•
•
Recruitment and outreach programmes carried out by community based
organisations whose in-depth understanding of the group and their social
networks enables them to identify and recruit suitable candidates for
employment programmes.
Effective pre-employment skill training involves employers in the design so that
the content reflects the real needs of employment. Job readiness skills are most
important
For individuals who have not had much experience of the workplace, post
employment support helps them to stay in employment and progress in their
careers. Services include mentoring programmes and career management
advisory services.
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Recommendations
Jobs for the Future (2004) (summarised):
•
•
•
•
•
Getting more ethnic minorities into employment should be made a national
priority, with an emphasis on employer involvement and the need for quality
programmes to be developed locally.
Demonstration projects that encourage employers to plan and carry out local
initiatives should be competitively funded.
Policy makers should make it easier for local partnerships to combine resources
in flexible and innovative ways.
Goals and targets should be set across agencies at a national level with local
initiatives given room to set their own goals within that framework.
Effective workforce programmes should respond to opportunities in each
particular local labour market.
New Deal Programmes
112. Qualitative, longitudinal research into experiences of ethnic minorities of the
New Deal for Young People (NDYP) found a lack of awareness of the options
available, mainly due to selective filtering of information by personal advisors who
considered that their clients did not need the information (Fieldhouse et al., 2002).
Participants did not feel discriminated against and were generally happy with the
personalised approach. However after the options had begun there was a
perceived lack of support from personal advisors. While the options period was
generally viewed favourably, participants were later more negative about the
NDYP, regarding the Gateway period as a waste of their time and wanting to move
onto the options more quickly.
113. Despite the fact that ethnic minorities, especially Asians, are generally better
qualified than White people entering NDYP, they were likely to take the further
training option than the subsidized employment option. Many of these participants
responded negatively to training, finding it repetitive and boring. Those who had
chosen the further education option tended to drop out once they realised the
extent of monitoring of their attendance and progress, or because their education
courses were longer than the length of the scheme. Most ethnic minority
participants in the voluntary option complained that the tasks were mundane and
the training inadequate (Fieldhouse et al., 2002).
114. Fieldhouse et al. (2002) found that ethnic minority respondents were more likely
than their White counterparts to leave the scheme early (41 per cent compared to
31 per cent, with the highest proportion being Pakistanis at 45 per cent).
Participants left for a variety of reasons, but rarely because of a negative attitude
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towards work in general. Some had had negative experiences of training and would
avoid the scheme by getting any job they could find, normally low-paid and/or
informal. There were also external factors such as having to leave the scheme to
look after home/family or to travel abroad.
115. On the basis of their research Fieldhouse et al. (2002) contended that
measuring the success of the New Deal on employment outcomes was flawed
because although some ethnic minority participants found employment through the
programme, this was often because they felt forced into it and wanted to find a way
to leave. Additionally even when they found employment, Asian participants - who
often entered the NDYP with degrees - often complained that it was not what they
were looking for when interviewed. Conversely, those who did not find employment
were positive about the scheme because they felt they had gained in terms of
employability, especially with regards to the work experience.
116. Lone parents from ethnic minority groups are less likely than their White
counterparts to access the New Deal for Lone Parents (NDLP) and less likely to
leave the programme for a job. A Department for Work and Pensions report on this
issue (Pettigrew, 2003), based on 61 interviews with lone parents, identified several
key factors related to awareness and perception of the NDLP and other related
services:
•
•
•
•
•
•
Lack of awareness of NDLP (especially amongst non-English speaking minority
ethnic lone-parents and lone parents with limited English skills) was a major
factor why non-English speakers did not attend the initial NDLP interview.
Most respondents were unaware that as part of claiming benefits they were
supposed to deal with the Child Support Agency. .
Level of ‘job readiness’ and availability of suitable jobs strongly influenced the
likelihood that ethnic minority lone parents would react positively to the
interviews of the NDLP programme,
A general lack of confidence, especially with regards to interview skills.
A perception that there was a limited range of suitable jobs, and that working
was not financially viable.
Family support was essential in encouraging minority ethnic lone parents to
attend the initial interview of the programme; and negative family feedback was
one of the major reasons for non-attendance.
Recommendations
Pettigrew (2003):
•
For those minority ethnic lone parents who felt isolated due to a lack of a
support network, access to more support would help increase their awareness
of programmes such NDLP, childcare provision and the role of the Child
Support Agency.
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•
•
•
•
•
Telephone contact rather than invitation by post to overcome any
misunderstandings or negative perceptions of the programme. Attempts should
also be made to provide initial invitations in other languages.
Non-English speakers sometimes use community centres and advisers to
provide interpretation for them regarding written communications. More work
should be carried out with these centres advising them of what the programme
can offer, and advising them that they may be asked to interpret
communications about NDLP.
When discussing childcare options, advisors must bear in mind the reluctance
of Asian lone parents to leave their children with non-family.
Respondents felt that the Child Support Agency should be advertised more to
improve awareness of its role.
Staff need to be able to empathise with the emotive situation that lone parents
find themselves in.
Strategy Unit (2003) (summarised):
•
New Deal programmes need to be more flexible in order to cope with diversity
amongst ethnic minority groups.
Outreach
117. Research has found that outreach services can be an effective means to
engage traditionally hard-to-reach groups, including refugees, asylum seekers,
migrants and ethnic minorities. The Work and Pensions Select Committee (2007)
report on government employment strategy highlighted the importance of
community outreach in engaging ethnic minorities, suggesting that employment
services are most effective when delivered locally in places which ethnic minority
groups are already familiar with using. Dewson et al. (2006) suggested some
further key potential strengths of outreach services:
•
•
•
•
Informal context.
Flexibility.
Less target-driven than mainstream services.
Staff have longer to spend with clients.
118. Outreach services have been found to be less effective if they do not have clear
goals, lack support from mainstream organisations, lack capacity or funds or face
excessive outcome related funding pressures (Dewson et al.). Dewson et al.’s
investigation of outreach services for ethnic minority, refugee and immigrant groups
in London found them to be patchy and ad hoc. However, they also found
effectiveness in providing specialist advice, increasing benefit take-up and
attracting non-traditional customers to welfare-to-work services.
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119. The Ethnic Minority Outreach Initiative (EMO), which was launched in 2002, has
received commendation from a variety of sources. EMO helped 6,680 people move
into employment between April 2003 and October 2005 (Ethnic Minority
Employment Taskforce, 2006). The Work and Pensions Select Committee (2007)
found that EMO had had considerable successes in improving employment
opportunities for ethnic minorities. This is attributed to the fact that it was delivered
locally by community organisations in a non-threatening atmosphere.
120. Barnes et al. (2005) identifed some key strengths and weaknesses, successes
and failures of EMO. Overall EMO was found to have had a considerable impact in
increasing ethnic minorities’ awareness of employment and training opportunities,
among Indian and Pakistani women in particular. Use of workers with community
language skills and cultural awareness was found to be key to successfully
engaging with ethnic minority groups. Failures or weaknesses of the scheme were
largely found to be a consequence of time constraints. These meant that as the
end of the scheme approached, projects tended to focus on those closest to the
labour market because they were the most likely to achieve outcomes in the
remaining time. Additionally, a lack of time meant that towards the end of the
scheme, when providers were supposed to be showing results, those working with
employers tended to focus on those who were most receptive to diversity issues.
There were also difficulties caused by lack of awareness of the scheme by
Jobcentre Plus staff and employers.
121. The Work and Pensions Select Committee expressed concern that the
Deprived Areas Fund (DAF), which replaced the EMO, did not include a prescribed
focus on the needs of ethnic minorities. The Committee also considered that the
use of central procurement for the DAF might make it difficult to access for some
local groups. They reported concern that this could have a negative impact on the
position of ethnic minorities in the labour market. The lack of obligatory focus on
ethnic minorities in the City Strategy had prompted similar concerns (Work and
Pensions Select Committee, 2007).
Recommendations
Barnes et al. (2005):
•
•
There was an increased use of Jobcentre Plus services. Not all EMO users
were willing to register with Jobcentre Plus and those who were registered did
not use all the services on offer, meaning that this work did not necessarily
generate outcome payments. The Ethnic Minorities Flexible Fund could fill this
gap, allowing the work to continue without having to rely on Jobcentre Plus.
For those facing significant barriers to work, finding work often took more than a
year and did not generate outcome payments. Incentives need to be created to
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•
continue to promote work with those hardest to help and make this aspect of
the scheme financially viable.
Those without a client base providing diversity and consultancy training found it
difficult to recruit employers. They needed to have improved links with
employers to overcome this problem.
Ethnic Minority Employment Task Force (2006):
•
Tailored outreach support should be established to target ethnic minority people
who are not working and not claiming benefits such as Pakistani and
Bangladeshi women.
Dewson et al. (2006):
•
•
•
•
There is a role for outreach services in engaging hard-to-reach customers.
These services could be delivered by Jobcentre Plus directly or through other
organisations.
Outreach services must remain focused on moving people into work. This will
require staff to have a knowledge of both harder-to-reach customers and issues
related to the local labour market and in-work benefits etc.
Providing outreach services could offer Jobcentre Plus the opportunity to
maintain a local presence and continue to engage in local partnerships.
There needs to be a full and systematic review of how well outreach services
work in achieving outcomes in comparison with mainstream services.
Strategy Unit (2003) (summarised):
•
Mainstream employment programmes need to ‘reach out’ to ethnic minorities.
Work and Pensions Select Committee (2005):
• Develop a coherent ethnic minority outreach strategy by 1 May 2006 and work
in close partnership with local and community groups in order to meet the
information needs of ethnic minorities. Also a thorough review of capacity within
advice services serving communities with high minority populations, and other
indicators of social need.
Work and Pensions Select Committee (2007):
• Evidence suggests that the EMO programme was working well at improving
employment opportunities for ethnic minorities, using small local organisations.
Since this is to be replaced by the Deprived Areas Fund, we will want to see
evidence that organisations contracted to administer the Fund are working with
small local groups to reach the same clientele as the EMO programme did.
• It is important that the focus on offering employment services to ethnic
minorities should not be lost, either in City Strategy areas or elsewhere. We
recommend that City Strategy consortia, or, in those areas receiving DAF which
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•
are not City Strategy pathfinder areas, Jobcentre Plus District Managers be
given control of DAF funding so that they can contract directly with local
organisations instead of having to go through centralised procurement.
We expect to see that those of the 15 City Strategy pilot areas which have
significant ethnic minority populations have given a high priority to addressing
ethnic minority unemployment in their plans; the Department should monitor this
and report back to the Committee on this point in six and twelve months’ time.
The Department should also, in its response to this report, set out its plans to
ensure that the focus of, and lessons learned from, the EMO are taken forward
outside the City Strategy areas.
Specialist Employment Advisor (SEA) pilot
122. The SEA was a new role created within Jobcentre Plus, piloted over 2 years.
The initiative was intended to proactively tackle discrimination and open up
employment opportunities to ethnic minority communities by building strategic and
innovative relationships between Jobcentre Plus and employers. The pilot was
implemented in seven areas where ethnic minority unemployment was significantly
higher than the national average: Birmingham, Bradford, Leicester, London,
Manchester, Nottingham and Wolverhampton.
123. Research involving two waves of 90 and 95 interviews with four key stakeholder
groups was conducted to examine how best the lessons learned from the SEA pilot
could be built upon, and to explore measures of success and best practice
(Pettigrew et al., 2006). Although the authors considered there to be greater
potential to impact workforce diversity with employers who have not yet
incorporated any changes to their policies, they found that the most successful
working relationships with employers often occurred when employers initiated
contact, and so have already made steps to engage with the Equality and Diversity
agenda. It was found to be harder for SEAs to instigate relationships with
employers who do not make contact, and who may not have previously considered
improving links with ethnic minority employees.
124. The research identified a number of areas of best practice from the pilot in
relation to its aim of developing products and approaches that could be used as
templates and models nationally to engage ethnic minority communities in the
labour market. Specific methods and products found to have been successfully
applied include:
•
A supply and demand model – which details the local ethnic minority labour
market and matches it to local employment opportunities.
•
Specific and practical guidance and advice – for example, advising employers
on their intranets, internal policies, application forms, telephone interview
processes and appropriate advertising forums.
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•
Ethnic minority-focused events – for example, job fairs in locations designed to
engage hard to reach minority groups, cultural tours for employers, employer
and community group workshops, in-store recruitment and breakfast meetings.
•
Video presentations and leaflets which detail the business benefits of having an
ethnically diverse workforce.
•
Provision of facilities for employers – for example, interviewer facilities, and
application sifting.
125. Overall the study found that the experience of SEAs (and almost all relevant
stakeholders) shows that engaging with both communities and employers is a longterm process rather than a quick fix. Many community groups that were interviewed
felt that SEAs needed to be given a chance to establish long-term links with
employers and communities, and that this could take some time. It was felt that
even two years was not long enough to see the widespread attitudinal change
which would be necessary before any positive results became visible.
Fair Cities
126. The Interim Report for the evaluation of the Fair Cities Pilots 2006 (Atkinson et
al., 2007) gave findings on their effectiveness in increasing the number of
disadvantaged ethnic minorities who found work using a demand-led approach.
They focused on a number of key areas:
•
Setting up local infrastructure. Relationships with local actors are found to be
developing well. The pilots have not experienced much difficulty in securing
enough appropriate organisations to provide content for training and recruitment
advice for the scheme.
•
Secured through Fair Cities personnel, training providers and, to a lesser
extent, via Jobcentre Plus and Business Links. The most successful methods
for employer engagement are through board member companies and face-toface employer engagement activities. The report found that employers join the
scheme because it helps overcome skill shortages and to attain public funding
for the purpose of corporate social responsibility.
•
Pilots have mainly used performance-related contracts to ensure providers are
firmly aimed towards giving participants higher chances of job entry and job
retention.
•
The jobs on offer tend to be high quality in entry-level or first level jobs which do
not require people with previous experience. Furthermore, in large
organisations (which are more likely to take part in the scheme), they are likely
to have better conditions of employment, a higher chance of job progression
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through internal promotion, a higher level of legality, ethical standards and nondiscriminatory employment practises.
•
The evaluation found few problems attracting beneficiaries to the scheme,
especially those most disadvantaged and lacking in skills, and ethnic minorities
(80 per cent of entrants), as they are drawn to the higher quality of jobs on offer.
However the scheme has attracted a larger number of participants (54 per cent)
who have worked in the last 12 months (as opposed to the long-term
unemployed). Also the current set of pipelines are assessed as generally too
short and not designed to address the deep-rooted barriers to employment
which the communities targeted by the scheme face. Those who are most likely
to find success on the scheme already have the necessary skills for the
positions or are not far off.
•
Some evidence was found that some pipelines are engaging in the alteration of
employer’s recruitment and selection behaviour so they are more likely to help
minority group jobseekers.
127.
Two key areas of underperformance were identified:
•
A break between assessment and allocation to a job pipeline was identified
(only 58 per cent of those assessed had been referred on).
•
Despite there being a better quality of jobs on offer, the job pipelines tended to
fail to result in sustained employment for participants, and the number of those
getting into positions following participation in the scheme was low.
Recommendations
•
•
•
•
•
Atkinson et al. (2007) (summarised):
Fair Cities Pilots should urgently consider potential means of accelerating the
rate of job entries.
Pilots should consider to what extent the beneficiaries they are currently serving
are significantly disadvantaged and are not already served by existing, cheaper
labour market agencies.
Any enhanced emphasis on the pace of operations and the volume of job
entries should not be at the expense of further diluting the mix of beneficiaries
by leaning more strongly towards the more job ready entrants.
Fair Cities should review the effectiveness of the job pipelines which have
already run with a view to reducing wastage from new ones, specifically to
improve the recruitment rate among beneficiaries completing the course.
Fair Cities should seek to improve the quality and scope of their information
about the medium-term outcomes for their beneficiaries, with a view to
considering appropriate measures to aid retention in work.
Centre for Economic & Social Inclusion
46
•
Fair Cities should review its aspirations for the spatial targeting of the initiative;
its overt and public design aspiration to focus on distinct communities should
either be implemented more cogently or abandoned.
Centre for Economic & Social Inclusion
47
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