19.  There are many factors which contribute to the employment gap between ethnic minorities and the overall population. The most significant are employer discrimination, education and English language proficiency, and living in deprived areas of high unemployment. Other factors include: a lack of work experience or job readiness; low confidence or motivation; insufficient suitable childcare provision; and cultural issues. Many of these factors are interrelated, and many from ethnic minorities have multiple barriers to employment, providing Jobcentre Plus and its personal advisers with a significant challenge.[25]

20.  Whilst it is difficult to assess the extent to which direct and indirect discrimination against ethnic minorities impact on their ability to gain sustainable employment, it is widely accepted that significant ethnic discrimination exists and remains a considerable barrier. The Department believes that up to half of the overall gap between the ethnic minority employment rate and the overall employment rate is attributable to discrimination.[26] Figure 5 shows the key features of employment discrimination in the UK.

Figure 5: Discrimination in employment processes

Candidates rejected at the first stage of job application for having an Asian name or coming from a non-white background. Ethnic stereotypes and prejudices on the part of employers. Perpetuation of inequalities by employment agencies by predicting the rejection of ethnic minority candidates and so avoiding putting them forward for jobs. Members of ethnic minority groups are aware of the potential for discrimination and so constrain their job-seeking. Recruitment through internal vacancies, word-of-mouth or advertising only on national and regional English newspapers. A 'linguistic penalty' and hidden assumptions in competence frameworks in the job interview process.

Source: C&AG's Report, Figure 18

21.  The Department takes the issue of employer discrimination very seriously. It is surprising that in cities with the highest concentrations of ethnic minorities, customers rarely report discrimination to Jobcentre Plus. This may be due to ethnic minority customers being unaware of the reporting procedures and scepticism about the process, as borne out by the Department's own research. Jobcentre Plus takes effective action in the 80 or so cases of discrimination that are reported to it each month. With over 800 Jobcentre Plus offices, this equates to an average across the country of just over one complaint for each office per year. The Department is also seeking to proactively encourage employers to widen their recruitment pools and practices, and work with employers whose recruitment practices may inhibit the recruitment of ethnic minorities.[27]

22.  To improve their opportunities for gaining sustainable employment, many ethnic minority customers need to learn English or improve their English proficiency. New Deal programmes, run by the Department through Jobcentre Plus are a set of national programmes to help customers into work, providing flexibility for customers to receive a variety of training, including English for Speakers of Other Languages. Figure 6 shows the New Deal programmes most relevant to ethnic minorities.

Figure 6: Jobcentre Plus services

Source: Department for Work and Pensions Tabulation tool

23.  There is high demand for New Deal courses and availability is variable. Quality is also variable, with some customers finishing courses with the same level of language skills with which they started.[28] The Department acknowledges that the quality of New Deal courses is variable. Contract management is undertaken by five operational procurement units within the Department. The courses are inspected by Ofsted and Jobcentre Plus holds monthly meetings with providers to raise any quality issues. However, in some cases it can be some months before effective action is taken to remedy matters.[29]

24.  The proportion of ethnic minorities employed in any sector of the employment market will reflect a number of factors including, in some cases, discrimination. Within Jobcentre Plus, 11.7% of staff are from ethnic minorities, above the population average of 10%. For Whitehall as a whole, 9% of civil servants are from ethnic minorities. Within the Senior Civil Service, 3.4% are from ethnic minorities and the corresponding figure for the Department for Work and Pensions is just over 4%. In the private sector, the overall proportion of ethnic minority directors in FTSE 100 companies is 4.1%, up from 3.4% in 2006.[30]

26   Q 11; C&AG's Report, para 3.7 Back

27   Qq 10-11, 13; C&AG's Report, para 3.8 Back

28   C&AG's Report, paras 2.25, 2.29 Back

3 29  0 Qq 22-27; C&AG's Report, para 2.29 Back

3 30  1 Qq 34-38; C&AG's Report, para 3.21 Back