Press Release - Increasing Employment Rates for Ethnic
Minorities
1 February 2008
The NAO has reported today that, despite some progress, there is
still a significant gap between the employment rate for the ethnic
minority population and that for the general population which could
take thirty years to eliminate. The Department for Work and
Pensions’ strategy to tackle this has had some success, but in the
NAO’s view has lacked continuity, adversely affecting efforts to
reduce ethnic minority unemployment.
The employment rate for the ethnic minority population is 60 per
cent, and 74 per cent for the general population.The Department has
achieved its 2003 – 06 Public Service Agreement target to reduce
the employment gap and is on course to meet its Spring 2008
target.
However, the gap costs the economy £8.6 billion each year and,
although there have been significant fluctuations over the last 20
years, the gap is only 1.3 percentage points lower than it was in
1987. Reasons for the gap include that some ethnic minorities live
in deprived areas with high unemployment; and some face
discrimination and unequal treatment.
Most ethnic minorities who find employment through Jobcentre
Plus do so through its mainstream services. But between 2002 and
2006, the Department introduced a number of programmes to tackle
the ethnic minority unemployment gap, with varying levels of
success. After spending £40 million and filling 15,500 jobs, these
schemes have now been discontinued. The Department now focuses
efforts on disadvantaged groups and deprived areas more generally,
coupled with a move to more local decision making. This shift in
focus carries opportunities to concentrate help on members of the
community who are most disadvantaged, but carries the risk that
ethnic minorities may not receive the help they need to gain
employment.
The Department has now discontinued its programme to reach out
to the ethnic minority community and help ethnic minorities who are
not actively seeking work. Outreach activity by Jobcentre Plus is
now discretionary, and in some offices is being significantly cut
back. This risks losing the skills and experience of local
voluntary sector organisations who specialise in this work, and
their links to some isolated sections of the ethnic minority
community. However, Jobcentre Plus advisers do an impressive job in
helping ethnic minorities to find employment and a recent survey
indicated few differences in the satisfaction levels between ethnic
minority and white customers.
One consequence of lower employment rates for ethnic minorities
is increased levels of poverty. nineteen per cent of the white
population live in low income households compared with 56 per cent
of the Pakistani and Bangladeshi population. And 23 per cent of
white children live in low income households compared with 60 per
cent of Pakistani and Bangladeshi children.
The Comptroller and Auditor General said
today:
“Some progress has been made in tackling unemployment
rates within ethnic minority groups, but the reality is that over
recent years, while there has been a slow but steady improvement,
the overall reduction in the employment gap has been
modest.
“The Department for Work and Pension’s strategy has been
fragmented but is being refocused on those living in deprived
areas. While this provides opportunities to help those most
disadvantaged, it carries the risk that some ethnic minorities may
not receive the help they need to get a job. Unless the Department
is prepared to do more to reach out to the ethnic minority
communities, prospects for increasing their employment rate remain
bleak”
Notes for Editors:
- The figures quoted in the NAO report and this Press Notice in
relation to the employment gap are from the first quarter of 2007 –
the latest available at the time of the study.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General is the head of the National
Audit Office which employs some 850 staff. He and the NAO are
totally independent of Government. He certifies the accounts of all
Government departments and a wide range of other public sector
bodies; and he has statutory authority to report to Parliament on
the economy, efficiency and effectiveness with which departments
and other bodies have used their resources.
Press Notice 07/08
All enquiries to Mark Anderson, NAO Press Office: Tel: 020 7798
7558
Mobile: 077796 937 119