Minority ethnic groups
159. Minority
ethnic children are more likely to be living in poverty and the
rates of poverty differ between different ethnic groups (see section
3). Evidence suggests that minority ethnic groups are more likely
to have certain characteristics that put children at more risk
of poverty; for example, some minority ethnic groups are more
likely to contain large families whereas other groups have a high
incidence of lone parenthood.[161]
As with the children of lone parents and of disabled people, minority
ethnic children are particularly affected by living in workless
households. Unemployment rates are particularly high for the Caribbean,
black African, Bangladeshi and Pakistani ethnic groups and are
also above average for those of Indian origin.[162]
160. In spite of a PSA target to reduce the employment
differential between the overall employment rate and that for
minority ethnic groups, the gap has remained at around 16% since
the target was introduced in 1998. The current employment rate
for minority ethnic groups is 58.3% (compared with 75% overall)
and the Department admits there has been some slippage in progress.[163]
161. Explanations for the low employment rates and
the difficulty in raising them vary although, in oral evidence,
both the Secretary of State and Dr Lucinda Platt - an expert on
minority ethnic poverty - said that education and skills under-attainment
and prejudice and discrimination in education and the workplace
accounted for much of the disadvantage. Other issues included
occupational segregation, high levels of ill health, language
issues and the limited effectiveness of employment programmes.[164]
A recent report on minority ethnic children and poverty added
to the debate by pointing to the statistics showing that, in 2001,
while 69% of white children continued in full-time education after
the age of 16, this compares with 77% of Pakistani children, 79%
of Bangladeshi children, 82% of black children and 91% of children
from Indian families. Combined with the higher than average achievement
of Indian pupils, the authors suggest that - unlike low income
families - high poverty rates in some minority ethnic families
are accompanied by high expectations.[165]
However, Dr Lucinda Platt suggested that the extended period
spent in education by young adults in minority ethnic groups might
be due to 'catching up' for qualifications not gained in school,
possibly due to failures in schooling, or the opportunity to gain
more qualifications to compensate for a discriminatory labour
market.[166]
162. Minority ethnic groups are over-represented
in the three main New Deal programmes (20% of New Deal for Young
People participants, 14% of New Deal for 25+ and 11% of New Deal
for Lone Parents are minority ethnic people, compared with 8.2%
of the working age population). However, minority ethnic groups
are also less likely to enter work after participating in the
New Deal. For example, only 39.6% of minority ethnic groups participating
in NDLP move into work compared with 52.% of white participants.[167]
163. The Secretary of State also told us:
"…of our various initiatives, the one
which does best in terms of parity of outcomes for ethnic minorities,
not only movement into jobs, but actually better than parity on
sustainability of jobs is the Employment Zone approach. When I
have looked into the reasons why this is, it appears to be that
they are better connected with the network of local employers
in the areas they service, their own staff are more representative
of the ethnic mix of employers in the areas they serve and they
are helping a bigger proportion of their clients into small businesses
which of course are the big job generators…"[168]
164. The Strategy Unit, based in the Cabinet Office,
published a report in 2003 on employment and minority ethnic groups
resulting in a Taskforce being established to take forward recommendations
and monitor progress.[169]
Recommended policy initiatives focus on four areas: improving
employability; improving the connection of minority ethnic groups
with work; promoting equal opportunities; and reforming Government
structures. In particular, the report recommends that employment
programmes undertake more efficient outreach with minority ethnic
groups and, as reflected in the comments of the Secretary of State,
'borrow' from the successful parts of the Employment Zone approach
and apply them to the New Deals. In addition, the Department
has set up an Ethnic Minority Employment Unit who will be working
with Jobcentre Plus to improve their service delivery to minority
ethnic communities. Budget 2004 announced a 'fair cities' initiative
in three areas. This will involved employer-led partnerships in
designing initiatives to improve employment outcomes, retention
and advancement for local minority ethnic communities.
165. The Committee is deeply concerned that performance
in relation to the PSA target on increasing the employment rate
of minority ethnic groups remains static after six years. Progress
on this target is imperative if the child poverty targets are
to be met. A continued high minority ethnic workless rate would
have unacceptable implications. The
Committee recommends that the Chancellor's New Deal for Skills,
announced in the Budget, should initially be targetted on those
areas with a high proportion of minority ethnic groups. We also
recommend that active consideration be given to extending Employment
Zones to cover more areas with large minority ethnic communities.
The Committee will also return to some of these issues in our
inquiry into service delivery by DWP to minority ethnic groups
and refugees.
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