The Labour Market Performance of Ethnic Minorities in the Recovery

Employment rates for British born minorities and immigrants are much lower than those of British born whites with the same age and level of educational attainment. Over the recovery, employment and unemployment differentials narrowed for some, but not all, minority groups relative to British born whites. Employment differentials narrowed more for British born ethnic minority individuals than for immigrants. For Afro-Caribbean and Bangladeshi men, however, no such improvement in employment prospects can be observed. Both employment and unemployment rates are generally higher for most British born minorities relative to immigrants of the same ethnic group. This apparent anomaly can be explained by the much higher and worrisome rates of economic inactivity among immigrants. Relative pay differentials tend to be smaller among women. Despite there being little difference in pay between British born ethnic minority women and British born white women once age, region and education are accounted for, wages among men and immigrant ethnic minority women remain relatively low and these relative positions have changed little over the recovery.