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IMPROVING BAME EMPLOYMENT & SKILLS OUTCOMES IN LONDON Prepared by Jeremy Crook for 25 July 2013
IMPROVING BAME EMPLOYMENT & SKILLS OUTCOMES IN LONDON
Prepared by Jeremy Crook for
25 July 2013
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Education is the foundation GCSE 2010/11
Key statistics• Significant differences in work programme
performance for males (referrals to job outcomes) White males (13.4%) and Black Caribbean (8.9%)
• Employment rate for Pakistani/Bangladeshi women 33.8% (April 2012 to March 2013, London). Unemployment rate 20.9%.
• 25% of on-line applications for Apprenticeships are from BAME individuals but only 10% of Apprentices are BAME in England. (NAS, 2013)
• 39% of apprenticeship starts in London (2011/12) were BAME.
Labour Market: 16-24 Year Olds
• The above figures were published by the Office for National Statistics in March 2012
16-24 Year Olds by Ethnicity
869,000 19,000 65,00057,000
1,026,000
3,318,00066,000
179,00063,000 3,667,000
2,041,00060,000
239,000 106,0002,607,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
White Mixed Asian Black Total
Pro
port
ion
of P
opul
atio
n
Inactive
Employed
Unemployed
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16-24 Year Olds: Male
• Numbers in the chart show the number of people falling in each category (e.g. 33,000 Black unemployed men, aged 16-24)
16-24 Year Olds by Ethnicity: Male
530,000 9,000 39,00033,000
617,000
1,684,00030,000 104,000
26,000 1,864,000
963,00027,000 121,000 48,000
1,233,000
0%
20%
40%
60%
80%
100%
White Mixed Asian Black Total
Pro
port
ion
of P
opul
atio
n
Inactive
Employed
Unemployed
16 - 24 yrs. National Unemployment Profile by Ethnicity (%)Source: DWP, Ad hoc Analysis, May 2013
2127.7 27.3 24.2
30.8 34.8
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44.1
Source: Claimant stocks and flows - ethnicity, age and duration; ONS, from Nomis on 19 June 2013
London Apprenticeships Starts Data
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SELF EMPLOYMENT RATES
All People 8%Ethnic Minorities 7%Black Caribbean 4.8%Black African 5.1%Mixed 5.4%Pakistani 10.3%
A big gap between aspiration and actuality for African and Caribbean people
(Source: Office for National Statistics, 2011/Labour Force Survey 2010)
Explaining ethnic penalties- Discrimination(Source: Anthony Health, Oxford & Manchester Universities)
• Field experiments in western countries routinely show that job applicants with ‘foreign-sounding’ names receive fewer call-backs from potential employers
• Such applicants often have to make twice as many applications as their western peers
• Evidence that ethnic penalties and incidence of discrimination are not restricted to the 1st generation but are equally large for the 2nd generation
• Evidence that discrimination is greater in the private sector and in smaller firms
• Evidence that discrimination is reduced in ‘bottleneck’ and high-tech occupations
Cont’d• Discrimination does not appear to be the sole
cause of ethnic penalties• Lack of ‘bridging social capital’ and knowledge
about vacancies can be important (especially if recruitment is by word of mouth)
• The chill factor - worries that one will not be welcome - can also put minorities off applying
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Overview of Government strategy
• Youth Contract (£1billion) will provide nearly half-a-million new opportunities for 18-24 years olds, including apprenticeships and voluntary work experience placements.
• Work Programme • New Enterprise Allowance (40,000 individuals
support)• Localism - Local Enterprise Partnerships• Regional Growth Fund (According to National
Audit Office a job is costing between £5k and £200k)
PRACTICAL SOLUTIONS• Targeted programmes for BAME jobseekers in 1-10 London
boroughs involving mainstream and specialist employment providers with strong links to employers.
• Differential payment weighting for black jobseekers on Work Programme.
• Political will to ensure ALL publicly funded employment and skills providers have their performance monitored to close race disparities
• Effective leadership on this issue is needed from the London’s voluntary sector
• Employer Campaign - ‘Does your company reflect the young people of London?’
• See Key Statistics at www.bteg.co.ukThank you.
[email protected] by Trust for London
