Select Committee on Business and Enterprise Written Evidence


Memorandum submitted by the Equal Opportunities Commission

SUMMARY

    —  EOC investigations have found a clear correlation between sectors with high levels of gender segregation—such as construction, where only 2% of the jobs are held by women[35]—and skills shortages within that sector. This has massive implications for the UK's competitiveness and productivity.

    —  However, occupational segregation does not only have a negative impact on the economy, but is also a significant cause of the gender pay gap. Women are still working predominantly in lower paid areas, the five "Cs"—cleaning, catering, caring, cashiering and clerical work—which is one of the reasons why their full-time pay on average remains 17% less per hour than that of full-time men, 38% less if they work part-time.

    —  Occupational segregation is a particular issue for ethnic minority. Our Moving on up? investigation found that 32% of all Bangladeshi women work in just five occupations. A quarter of Pakistani and Bangladeshi women work in the wholesale and retail sectors and 28% of Black Caribbean women work in health and social work. The highest concentration of white British women is 18% in health and social work.[36]

    —  Flexible working; affordable, high-quality childcare; careers advice which challenges gender stereotypes; and lifelong learning are all areas which can be improved in order to increase the representation of women in the UK construction industry, thereby having a beneficial impact on current and projected skills shortages.

    —  There is an appetite for change amongst both employers; and future employees. Our research shows that more than a third of girls—36%—said they definitely would consider non-traditional work, 44 % said they might. 12% girls said that they were interested in working in construction—considerably more than the low numbers currently in the construction workforce. However, only 15% of girls and boys received any advice on work placements in areas dominated by the other sex.

    —  We would like to see the 2012 Olympics delivering a showcase project applying the recommendations of our occupational segregation investigation and the Women and Work Commission (WWC) report in practice to the delivery of the infrastructure for the Games, in order to increase representation of women across key delivery sectors.

INTRODUCTION

  1.  The Equal Opportunities Commission (EOC) is the statutory body for sex equality in Great Britain. Our specific statutory duties include "to promote equality of opportunity between women and men generally" (Sex Discrimination Act, Section 53 (1) (b)). The EOC is a non-departmental public body, funded through grant-in-aid, and is the leading agency working to eliminate sex discrimination in 21st Century Britain.

  2.  We welcome the opportunity to contribute to this inquiry on the UK construction industry, and will be focusing our response on the following areas: employment practices; long-term capacity for the delivery of large projects, such as the Olympics; availability of investment and skills; and the use of procurement. Given the EOC's remit these areas will be considered from a gender angle and will explore occupational segregation and the impact on skills shortages, as well as the barriers to the construction industry that exist for women, such as lack of flexible training and employment.

  3.  It is not only the under-representation of women that has a negative impact on certain sectors, as the under-representation of men in areas such as childcare is also damaging and exacerbates skills shortages in those areas. However, given the focus of this inquiry is the construction industry, we will focus our comments on the barriers faced by women.

  4.  We have conducted a number of investigations which are relevant to this inquiry, including Free to Choose[37] (which explored gender barriers to jobs), Transformation of work[38] (this on-going investigation is exploring ways of increasing flexibility in employment), Moving on up? [39](looking at Black Caribbean, Pakistani and Bangladeshi women's employment) and Britain's hidden brain drain[40] (an investigation into flexible and part-time working), and we will draw on these findings and policy recommendations in this submission.

OCCUPATIONAL SEGREGATION

  5.  Only 2% of jobs within the construction industry are held by women. Our investigation into occupational segregation found that this under-representation of women is true of a number of sectors demonstrating that women's skills are under-used in an economy that needs the best people, with high-quality skills, in the right place at the right time.

  6.  Women now make up nearly half of Britain's workforce and the proportion is growing. We have the highest workforce participation rate for women in Europe, with the exception of the Scandinavian countries. Women are excelling in education at all levels. Britain's economy and the construction industry in particular, would therefore benefit from breaking down occupational barriers, helping to tackle skill shortages and making better use of individual education, skills and potential. Occupational segregation causes employers to miss out on a huge potential pool of labour with which to plug their skills gaps.

  7.  To highlight the extent of the problem, recent statistics show that skills shortages continue to be of concern for projects, such as the Olympics—in addition to the shortfall of 300,000 workers for agreed construction contracts, estimates suggest demand of 33,500 full time equivalents employees for the Olympics and Paralympics. Widening the training and recruitment pool to include more women could provide one obvious solution.

  8.  Introducing more flexible working to enable atypical recruits with caring responsibilities has been shown to have a positive effect on businesses. For example, an EOC survey of employers found that 38% had experienced difficulties in recruiting staff in the previous 18 months (Smeaton et al, 2007). Over 50% of the employers surveyed by the Association of Graduate Recruiters said that their retention rates needed improving (AGR, 2006). Research in 2000 found that some small businesses saved up to £250,000 through reducing staff turnover, simply by using flexible working policies (DfEE, 2000).

  9.  This demonstrates the strong business case for increasing the representation of women in sectors, such as construction and we have found a definite appetite for change. 70% of employers in England reported that they thought atypical recruits could bring positive benefits to the business, and eight in ten said a better gender mix would create a better range of skills and talents. Yet this is not happening and construction (along with engineering, plumbing and ICT) remains amongst the most heavily segregated sectors of the workforce in Britain.

Ethnic minority women

  10.  Occupational segregation is a major feature of ethnic minority women's employment. Our recent investigation, Moving on up? found that 32% of all Bangladeshi women work in just five occupations, compared to 12% of white men. A quarter of Pakistani and Bangladeshi women work in the wholesale and retail sectors and 28% of Black Caribbean women work in health and social work. The highest concentration of white British women is 18% in health and social work.

  11.  Our research shows that once again, employers are missing a major opportunity. Firstly, the percentage of young Black Caribbean, Pakistani and Bangladeshi girls obtaining 5 GCSEs at A-C level has increased in recent years to nearly the same level as for white girls and, for Pakistani and Bangladeshis, performance exceeds that of white boys.

  12.  As well as being highly qualified, EOC research with girls at age 16 and with women employees under 35 suggests that young Black Caribbean, Pakistani and Bangladeshi women's aspirations are close to, or in many cases exceed, those of young white British men and women.

  13.  Yet despite the huge potential represented by their qualifications and ambition, Black Caribbean, Pakistani and Bangladeshi women are not seeing the same success in the labour market as white women. As highlighted above, occupational segregation is even more prevalent for these women, and as a result employers are missing an opportunity to tackle skills shortages.

  14.  The strong business case for enabling these women into the construction industry is demonstrated by the estimate that there are 90,000 ethnic minority women out of work in the four London boroughs covered by the Olympics site, compared to 65,000 ethnic minority men.[41] Based on EOC research for our Moving on up? investigation into ethnic minority women's employment, it is likely that over 22,000 (at least 25%) of these black and ethnic minority women who are out of work, would like to have a job[42]—therefore these women present a major opportunity for the sector and by enabling those who want to work to gain new skills, experience and job opportunities, the Olympics Delivery Authority and the Games themselves could demonstrate the importance of recruiting and training atypical recruits as a means of plugging the skills gap.

Government targets

  15.  There is obviously a strong business case for tackling occupational segregation, but increasing the representation of women in sectors such as construction, would not only have an impact on skills shortages and the economy, but would also help government to achieve a variety of targets, including:

    —  Closing the ethnic minority employment gap.

    —  Abolishing child poverty.

    —  Reducing the gender pay gap.

    —  80% employment level.

Pay gap

  16.  Occupational segregation is a major cause of the pay gap, as women tend to be concentrated in "female" jobs that offer low wages. In general, male-dominated sectors offer better opportunities for pay and career progression, while "women's" work remains undervalued in social, economic and monetary terms. Despite the fact that girls and young women are excelling and outperforming boys in education, this is still not translating into equal pay for many adult women.

The effect on individuals

  17.  However, occupational segregation does not only have a negative impact on the economy, thwart achievement of government targets and exacerbate the pay gap, it also denies young people the chance to achieve personal or professional fulfillment by doing jobs they would love and be good at.

  18.  Research with women working in non-traditional sectors shows high levels of job satisfaction with women saying that their career choice had improved the quality of their lives. Many of these women had always wanted to do this type of work but had been put off when young. 92% of women and men said they would want children who are about to enter the workforce to be able to make job choices without worrying about traditional stereotypes of women's and men's working roles, rising to 100% in Wales.

  19.  The impact of segregation is particularly acute for girls from lower socio-economic groups who may not have access to information about a range of choices. 67% of women we surveyed were not aware of the differences in pay rates for work usually done by women and men and, of these, 67% of women aged 16-24 said they would have considered a wider range of career options if they had known.

  20.  This shows that as well as there being an awareness amongst employers that a diverse workforce would have positive benefits, there is also an appetite from young people to consider and enter non-traditional sectors. Our research showed that 80% of girls and 55% of boys said they would or might be interested in a non-traditional job and 76% of girls and 59% of boys wanted to try non-traditional work before making their job choices.

BARRIERS

Careers advice

  21.  Our research has shown that careers advice, rather than raising aspirations and widening horizons, often actually reinforces traditional choices and young people have no information on the pay advantages of nontraditional routes. For example, only 15% of young people in our research received any advice or information on work experience in a non-traditional sector. Where individuals are encouraged to find their own placements, children from higher socio-economic groups are better placed to find less predictable placements while other young people are allocated or choose from placements in sectors perceived to be suitable for their gender.

Training

  22.  EOC research has found that the apprenticeships which should be at the cutting edge of skills development in these sectors, are actually perpetuating segregation, with levels that are equal to or greater than the segregation in the workforce. This is because of the lack of apprenticeship places, lack of taster courses and inflexibility in the way training is delivered which disadvantages women with caring responsibilities. For example, training is often delivered on the rigid full-time full-day model which generally reflects hours in the industry, often starting at 7.30 am. This lack of flexibility is also a factor within the industry itself, and so continues to exclude women.

Lack of action by employers

  23.  There are pockets of best practice to recruit more atypical workers across all sectors, and in all parts of Great Britain, mainly in response to a perceived business need. But the majority of employers are not actively engaging with schools and 46% of apprenticeship employers that we surveyed recognised that they were not offering enough work experience opportunities to young people. At the same time, many women in non-traditional sectors face isolation and a culture of machismo, bullying and harassment, often with little or no support.

Lack of childcare

  24.  There are still not enough good quality, affordable childcare places for everyone who wants one. A key problem for working parents is the lack of fit between education and other forms of care.

  25.  Also, British parents face the highest childcare costs in Europe. This affects the type of work that women are able to take and the hours that they are able to work, which means that certain sectors, and also jobs at higher levels, are often closed off to them.

Attitudes to Ethnic minority women

  26.  Ethnic minority women face specific barriers which currently exclude them from certain sectors. Unfortunately these barriers and the position of ethnic minority women are often subsumed within broad generalisations about "ethnic minorities", yet ethnic minority women's experience is affected by their gender as well as their race. There are also significant differences in the labour market position of women from different ethnic and faith backgrounds, as well as important generational differences, which make generalisations unhelpful.

  27.  Our research demonstrates that ethnic minority women are facing discrimination as a result of their race and sex. For example, Black Caribbean, Pakistani and Bangladeshi women under 35 are three times more likely to be often asked about plans for marriage and children at interview. Also one in five working Pakistani and Bangladeshi women under 35 have heard negative comments about their religious dress at work.

  28.  There is a potential mismatch between some employer views, based on their interpretation of employing black and Asian women of all ages, and those of younger Black Caribbean, Pakistani and Bangladeshi women about themselves. For example, employers seem to believe that young Pakistani and Bangladeshi women are held back by their families, while 90% of the Pakistani and Bangladeshi 16 year olds that we surveyed say that their families support them in having a career as well as looking after a family.

  29.  In turn, this means that the fear of discrimination then restricts the career options of these young women. At 16, two thirds of Pakistani and Bangladeshi girls feel there are certain jobs they can't apply for because of their ethnic background, faith or gender.

  30.  Childcare is also a substantial barrier for Pakistani, Bangladeshi and Black Caribbean women also have different family patterns to white women. On average they have their first child earlier than white British women. Pakistani and Bangladeshi women are likely to have a larger number of children—the average White british household size was 2.3 children in 2001, whereas the figures are 4.2 and 4.7 for Pakistani and Bangladeshi households respectively. Over a third of Black Caribbean women are lone parents.

POLICY IMPLICATIONS

Careers advice

  31.  We were extremely encouraged by the Women and Work Commission report which highlighted the importance and need for better careers advice, and we have recently responded to a DfES consultation on the draft standards for Information, Advice and Guidance (IAG) for young people. We welcome the standards and are particularly supportive of the aim of "raising aspirations, challenging stereotypes, and ensuring that young people are aware of all the opportunities which are open to them".

  32.  Within the IAG standards, we would like to see more emphasis on non-traditional work placements. Work experience should be integrated, as part of career guidance, particularly in schools in poor areas and priority should be given to pupils from disadvantaged backgrounds. Evidence shows that such placements have a substantial influence on the career choices of young people.

  33.  We also have concerns about the lack of focus on ethnic minority women in the WWC report, and believe it should be stressed that career guidance should not exacerbate stereotypes about ethnic minority communities. Advice and work experience placements are extremely important for young ethnic minority people as their parents are less likely to be able to secure such placements in a positive environment. Unfortunately we have found that current careers advice makes assumptions about the expectations of young women which narrows their horizons.

  34.  The DfES, with EOC and National Asssociation Of Connexions Partnerships has recently produced a good practice guide with case study examples of initiatives to widen choices, and funding has been made available for project work. This is very encouraging, but the funding support is very small and we would like to see a more strategic and resourced programme across careers information, advice and guidance to open up choices, with some focus on specific sectors where the under-representation is most acute, like construction.

  35.  Our investigation pointed to the lack of awareness of the higher pay rates for work and apprenticeships in male-dominated sectors amongst young people making choices. In a survey, 67% of young women aged 16-24 said that they would have considered a wider range of career options if they had known about the different pay rates. Information on pay for different types of work and training should be made available to all young people.

Gender equality duty

  36.  The Gender equality duty (GED) came into force in April 2007 and is an important tool to tackle occupational segregation, throughout education and training, and also through employment practices by procurement policy. This duty requires public authorities, including government departments, to demonstrate that they are promoting equality for women and men, girls and boys, and that they are eliminating sexual discrimination and harassment. This is the general duty. There are also specific duties, which include the need to set specific gender equality objectives and to prepare and publish a Gender equality scheme through consultation with employees, service users and other stakeholders. Progress must be reported on annually and the scheme must be reviewed and revised every three years.

  37.  The specific duties are an opportunity. Schools and colleges collate data on boys and girls already. What the duties will do is ensure they use that data intelligently to inform the decisions they make. They will open up new ways for schools to deliver a quality education that supports young people in making sound and informed transitions into the workplace. This can be delivered as part of their core activities and not as an additional requirement. It will enable institutions to ensure that careers advice and guidance are implemented in ways that secure the best outcomes for all young people.

Positive action

  38.  It is also important to note that the Sex Discrimination Act (SDA) allows positive action for women (or men), to fit them for particular work, or encourage them to take advantage of opportunities for doing that work, where the numbers of women in that sector were comparatively small at any time during the preceding 12 months. This can include single-sex training. For more information on positive action, please see the EOC website, which can be found at www.eoc.org.uk. The Women into Work Pathways initiative is an excellent example of a government-funded programme designed to challenge segregation in sectors, including construction, where women are under-represented. We would like to see this programme rolled out across the Skills for Business network.

Training

  39.  Vocational training schemes, whether apprenticeships or beyond, should be designed with the needs of atypical trainees in mind. This would mean tasters for young and adult apprenticeships; that young people and adult women trainees have more support to find adequate work placements, possibly through small employers sharing trainees and by project-based training; and there being local support networks for atypical trainees on training and apprenticeship schemes.

  40.  We welcome the positive response from DfES and the LSC to our investigation findings, and their commitment to work on this agenda. In particular, the DfES are developing a strategy for apprenticeships on equality and diversity and the Apprenticeship Ambassadors Network has created an equality and diversity group that are developing a programme of action. We are particularly pleased that the pilot adult apprenticeship programme has been extended and will have a reducing gender segregation focus. EOC is working to support these various initiatives and we very much hope to see some positive outcomes in the form of reducing the gender gap on apprenticeships in male-dominated sectors, including construction. Monitoring progress and assessing where additional support is needed should be a priority across government.

Flexibility in training and employment

  41.  We would like to see more flexibility in both training and employment. Extending the right to request to all employees would help a wider range of people, especially women, to enter and/or remain in work—even in industries and occupations that have traditionally been closed to them, reducing their segregated nature and helping employers alleviate their skills shortages. Crucially, this change will also tackle one of the major causes of the gender pay gap.

Employers and unions

  42.  We would like to see business leaders and major employers working with unions, LSCs and Sector Skills Councils to support and promote better, more flexible employer practices that would help and encourage more women to enter male-dominated sectors.

  43.  The reduction of occupational segregation, not just as an equality issue but also as a business and productivity issue, should be promoted amongst employers in the sector, CBI, TUC and their learning and skills partners. Employers should be encouraged to: train, recruit, and retain women in non-traditional sectors; re-skill women employees—Train to Gain provides the opportunity for a new national focus on in-house training of women in non-traditional skills; and offer at least one non-traditional work experience placement.

Childcare

  44.  The national childcare strategy is improving the quality and availability of childcare, and reducing the extent to which lack of childcare is identified as a barrier to work for workless parents—progress needs to be sustained.

  45.  Childcare must be flexible, culturally appropriate and affordable in order to allow women within families from all communities the opportunity to enter non-traditional workplaces, such as construction.

May 2007






35   http://www.eco.org.uk/pdk/occseg_oneyear_progress.pdf Back

36   http://www.eoc.org.uk/PDF/BME_GFI_early_findings_England.pdf Back

37   http://www.eoc.org.uk/PDF/occseg_finalrep_england.pdf Back

38   http://www.eoc.org.uk/PDF/working_outside_box.pdf Back

39   http://www.eoc.org.uk/PDF/bme_final_report2007.pdf Back

40   http://www.eoc.org.uk/PDF/brain_drain_final_report.pdf Back

41   Nahid Majid's paper to the Ethnic minority employment task force. Back

42   Equal opportunities Commission (2006) Moving on up? Manchester EOC. Back


 
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