The Equality and Human Rights Commission (EHRC) published a
report on 7 August 2024 to the United Nations Committee on the Elimination of all forms of Racial Discrimination (CERD Committee). The report analyses racial discrimination in Great Britain in several areas, including rights at work, and outlines corresponding recommendations to the UK and Welsh governments.
Employment gaps
The report notes that Pakistani, Bangladeshi, and Black ethnic groups have the highest unemployment rates in Great Britain - 8.7%, 8.8%, and 9.5% respectively, compared to 3.6% for White British people in 2021/22. Pakistani and Bangladeshi women have a much higher rate of economic inactivity than Pakistani and Bangladeshi men.
Suggested explanations in the report for the employment gap for Pakistani and Bangladeshi ethnic groups in England and Wales, particularly for women from this group born outside the UK, include cultural-religious reasons, differing preferences and norms, and discrimination.
Pay gaps
Bangladeshi and Pakistani workers in Great Britain consistently experience the largest pay gap compared to White British workers (earning 17.7% and 9.3% less respectively in 2021/22). The pay gap is also significant for Black workers, who are paid 7.8% less on average than White British workers.
Conversely, Chinese, Indian, and White Irish workers are paid 38.2%, 20.7%, and 34.4% more respectively than White British workers.
The report states that the introduction of mandatory reporting on recruitment, retention, and progression rates by ethnicity, alongside action plans, could be a more effective means of understanding race disparities than solely pay reporting.
Insecure work
The report found that ethnic minority workers in Britain are more likely than White British workers to be in insecure employment, which includes agency work, casual work, seasonal work, zero-hours contracts, and self-employment.
The growth in zero-hours contracts has disproportionately impacted ethnic minorities, with a 96% increase in ethnic minority workers on these contracts between 2013 and 2019, compared to a 29% increase for White British workers.
EHRC recommendations
The EHRC has recommended that the UK and Welsh Governments should:
- Improve the evidence base on employment gaps.
- Introduce a mandatory duty on public sector employers in England and private sector employers in England, Scotland, and Wales with more than 250 staff to report on and monitor ethnicity recruitment, retention, and progression, alongside a requirement for mandatory action plans outlining how inequalities and gaps will be tackled.
- For the Welsh Government, ensure its previous commitment to addressing the ethnicity pay gap is progressed, including addressing the inequitable recruitment, retention, and progression of ethnic minorities in the public sector.
Labour government proposals
The Labour government has already announced plans for reform in this area through the introduction of a draft Equality (Race and Disability) Bill. Announced in the King’s Speech, this Bill would enshrine in law the right to equal pay for ethnic minority workers and introduce mandatory ethnicity pay gap reporting for employers with 250 or more employees.
For more information on this Bill, please see our blog post
here.