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Overview
MENTER has been funded by the East of England Development Agency (EEDA) to lead an innovative project to break down barriers to BME access to skills employment and enterprise in the region. The work results from research, commissioned by MENTER and funded by EEDA in 2006, ‘BME access to skills, employment and enterprise in the East of England’ (Centre for Economic and Social Inclusion 2007). The research identified significant barriers preventing some BME people from accessing these services and made a number of recommendations for action. Implementation of the work commenced in summer 2008.
Ethnic Minorities experience higher unemployment rates, greater concentrations in routine and semi-routine work and lower earnings. Ethnic minorities, even those enjoying relative success, have been found not to be doing as well as they should be given their education and other characteristics. The three main barriers identified were discrimination by employers and service providers, lack of services that are tailored to meet the needs of BME communities – not additional specialist services but adapting the provision of mainstream services to meet the needs of certain groups, and lack of engagement between BME communities, policy makers and service providers. Three key regional agencies were mentioned as sometimes not meeting the needs of BME clients - the Learning and Skills Council, Jobcentre Plus and Businesslink East. However, addressing the issues raised in the report extends beyond the three agencies and requires engagement by a wide range of organizations in the public, private and voluntary sectors.
A post has been created at MENTER, funded by EEDA, to lead the work. During the first year in post, the post holder has been building MENTER’S knowledge base in the areas of skills, employment and enterprise, participating in regional events, partnerships and networks and making local links in the public and voluntary sectors to raise awareness of the work at regional and local level. See Current Areas of Work (below).
The East of England Development Agency (www.eeda.org.uk) – have produced their own response to the research “Ending Ethnic Inequality” The conclusion reads:
“One of the major determinants of long-term economic growth in the East of England will be the degree to which the region commits to the inclusion of individuals of all ethnicities. In the context of rapidly changing demographics, there is now an urgent wake-up call to tailor policy and services to the needs of BME groups – not only to avoid market failure, but to embrace the opportunity that our diverse population offers. The challenge now is to gain a better understanding of those needs, agree benchmarks and targets for participation at local and regional level, and identify the actions that the public, private and third sectors can take.”
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Key Issues in the research
The research identified a number of barriers excluding BME individuals from engaging fully in skills, employment and enterprise opportunities in the East if England. The main ones were as follows:
Discrimination
Discrimination is a major barrier preventing BME groups from gaining positive outcomes in skills, employment and enterprise.
Ethnic Penalty
There is now enough evidence to strongly suggest that both nationally and in the East of England, in comparison to the White British population, people from BME communities are more likely to face the economic disadvantages associated with poverty and social exclusion:
have generally lower incomes are more likely to suffer income-related deprivation and poor health more likely to live in poor quality housing, disadvantaged neighbourhoods and areas with high rates of crime.
The ethnic penalty refers to poor outcomes experienced by individuals seen when ethnicity is the common variable that differentiates outcomes in the labour market when other characteristics such as age, gender, qualifications etc are constant.
Gaps Between BME and White British Populations
Alongside other factors like discrimination there are other barriers. Evidence shows that people from BME groups
have greater educational underachievement are more likely to be unemployed are less likely to be employed than White British people.
Other Barriers
Other barriers experienced by BME individuals across skills, employment and enterprise include:
Language (lack of English) and linguistic penalties Labour market changes Geography (locations of BME settlements not matching areas where there are available jobs) Service provider ethos Lack of capacity in the voluntary and community sector
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Key areas for action identified in the research
Personalised/tailored services
This would involve:
Services being integrated and flexible to respond to individual needs that stem from various characteristics. Not making assumptions of the needs of groups or individuals or invoking standard solutions. A contextual approach that sees the individual in their location, their relationships with others, and their situation. Picking up on multiple barriers, and support provision entailing a combined approach to solve difficult issues.
Personalising services with BME groups in mind has two main actions that encompass a number of suggestions:
Partnership and awareness raising
The personalisation of services could be facilitated through increased partnership between
Through a partnership approach, extension and outreach work through informal services could play an important part in reforming mainstream services. The personal aspects of service provision should also be improved, along with cultural sensitivity and accountability. This requires that the channels between the VCS and regional agencies be improved.
Dialogue between mainstream service providers and BME communities should be supported in as many ways as possible; however, it is also required with employers.
Work with Employers
Work with employers needs to be increased on regional and sub-regional levels.
Entry-level assistance that BME groups require, such as gaining employment in a variety of sectors. This is an area that is a specific mandate of mainstream employment sectors. Working with employers to improve selection processes (such as training in holding interviews that reduce linguistic penalties), and in retention and promotion. Regional bodies should emphasise more ‘honest’ and fair processes in all sectors so that candidates get onto the right courses, programmes and jobs in the first place.
Two other ways of influencing the ways that employers work are:
Procurement
Evidence has shown that procurement projects can increase work for BME businesses which can in turn increase BME employment (as BME businesses often employ BME staff).
Kitemark
A method of proving that a business meets equality and race standards in procurement initiatives would be to use a kitemark or quality standard, such as C2E.
Regenerate Enterprise
Two potential areas of development are:
BME Business Networks
Improve the number of and capacity of BME business networks.
Micro-Finance Hub
Creation of a new micro-finance hub to foster and support the growth of BME entrepreneurship between the VCS, and regional public bodies and community development finance initiatives.
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Changing demographics and the workforce
The changing regional demographics in the East of England mirror those in the nation as a whole, i.e. that the growth in the BME population is significant in comparison to the White British population.
In comparison to the White British population, the growth rate of the BME population is quite large, especially amongst Black Africans. For instance, the percentage change from mid 2003 to mid 2004 amongst the White British population is -0.2 percent, compared to 9.7 percent for Indians, 7.6 per cent for Pakistanis and Bangladeshis, 8.1 percent for Chinese, and 21.9 per cent for Black Africans.
Ethnic minorities currently make up 8% of the UK population. Between 1999 and 2009, they will account for half the growth in the working-age population.
Making best use of their energy and talent will be a major challenge for government and employers, as well as for ethnic minorities themselves.
The Eastern Region has slightly smaller proportions of BME groups than in England overall, but the population is growing. The Eastern Region has the fifth largest population of non-White British residents in the UK, with 7 per cent of the non-White British population residing there.
The BME population is not evenly distributed throughout the East of England. There are high concentrations of BME groups in large towns and cities; however, this does vary. For instance, the BME population in Luton is 35 per cent and only 3.8 per cent in Norfolk (Census 2001). Since this time, MENTER has observed the increase in the number of migrant workers following the Accession States joining the European Union will have had an impact on these figures.
This sustained demographic change will require significant policy adaptations in order to ensure the inclusion, and economic contribution, of the growing BME population.
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The Employment Gap
Ethnic Minorities experience higher unemployment rates, greater concentrations in routine and semi-routine work and lower earnings. For the first quarter of 2007, the gap was 14.2% despite considerable investment from DWP.
Ethnic minorities, even those enjoying relative success, have been found not to be doing as well as they should be given their education and other characteristics
There are variations in the employment rates for different ethnic minority subgroups. These range from Bangladeshis at 44 per cent, to Indians at 69 per cent About one third of the working age ethnic minority population are neither working nor actively seeking work. This compares to some 21 per cent of the overall population who are ‘economically inactive’
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The Economic Impact
The cost of the employment gap includes the cost of benefit payments and lost tax revenue (£1.3 billion a year), lost output (£7.3 billion), and wider social costs (not estimated).
Low employment rates for particular ethnic minority groups hold back economic growth, particularly in the context of full employment and skills shortages. For example, if the employment rates of Pakistanis matched those of their Indian counterparts, the proportion of male and female workers in this group would rise by 24 and 136 per cent respectively, an increase of some 96,000 people in work. Similarly, if the employment rates of the Black, Pakistani and Bangladeshi groups matched those of their Indian counterparts, the British workforce would grow by over 180,000 people.
Department for Work and Pensions ‘Increasing Employment Rates for Ethnic Minorities’ (National Audit Office 2008)
This report confirms the research carried out in the Eastern Region and provides much of the data set out above with regard to the employment gap.
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Business in the Community
(Race for Opportunity) – Race to the Top
The place of minority ethnic groups in the UK workforce
Race for Opportunity has carried out research using data from the Office of National Statistics to analyse ethnic minority populations to identify achievement in management positions and in particular senior level jobs. In summary, the research highlights four key areas of concern:
On current trends, ethnic minorities in management will never be in line with their representation in the overall population The number of black and ethnic minority workers making it to the highest levels of management – the boardroom - is very small and in some cases too small to analyse In an increasingly diverse society this shortfall is not only morally wrong but a self-inflicted wound by companies that waste management potential Policymakers and employers must be on guard to ensure that the current recession does not lead to a reversal of the progress that has been made. The last time the UK came close to recession, there was a noticeable slowdown in the growth in BAME managers.
Generally, there is a mixed picture across sectors. Three sectors account for 80% of all ethnic minority workers in management positions. Public administration, education and health accounts for almost 1/3rd of BAME managers (137,130), closely followed by banking, finance and insurance (slightly more than ¼) and hotels, shops and restaurants make up 1/5th. The remaining 1/5th are divided between transport and communications, construction, manufacturing and other services.
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Current areas of Work
MENTER is the focal point for the project, working closely with EEDA. Funding from EEDA for 2009/10 is based upon an Action Plan prepared by MENTER and agreed by EEDA. Unlike most projects success will not be measured by numbers but rather through MENTER’s key roles of
In December 2008 a ‘Regional Summit’ was held including regional and local partners with the main objectives of raising awareness of the issues, encouraging ‘sign up’ by participants and identifying some ways forward. Overview presentations were provided by EEDA, Peter Ramsden, FREZ (formerly of The Centre for Economic and Social Inclusion) outlined the research and Jeremy Crook of BTEG delivered a presentation of case studies of work successfully operating in other parts of the country.
To provide a ‘strategic lead’ for the work MENTER has called together representatives from 5 major regional agencies – EEDA, the East of England Regional Assembly (EERA), GO East, the East of England Skills and Competitiveness Partnership, the East of England Business Group and MENTER. The group will maintain an overview of the project, use influence where necessary and provide a means of effectively monitoring action.
Following MENTER engagement with The Learning and Skills Council , Jobcentre Plus and Business Link East all three have indicated that the research and its implications will be used to influence future service delivery. MENTER has invited representatives of these agencies, EEDA, local authorities, enterprise agencies and VCS organizations to come together in a regional ‘Task Force’ to work to address the issues raised in the research. At the first meeting there was a very useful exchange of ideas and identification of issues for discussion. Future meetings of the Task Force will address these in manageable ‘bite sized’ pieces. This will enable Task Force members to be flexible about attendance, joining when discussing issues of particular relevance to their organization. At the second meeting the focus was on ‘enetrprise services’ and a sub group is now developing this work further.
MENTER is also working with the East of England Business Group and Race for Opportunity (part of Business in the Community) to develop links with the business sector in the East of England. The aim is to identify business champions from small to medium sized enterprises (SME’s) who can advocate the business case for a diverse workforce in order to encourage more employment of BME people and the creation of better opportunities for personal development once in the workforce.
MENTER has also established good links with EERA and a meeting has taken place to discuss how MENTER can best influence the work of local authorities which have a key role in this agenda through leadership/governance, as employers, service delivers and as procurers of services. Following the Sub-national Review, local authorities also have an increasingly important economic development role. MENTER is also hoping to work with Unison, the trades union, on this work.
Another area of development is BAME social enterprise. MENTER is working closely with Social Enterprise East of England and is a member of a new group ‘Diversity Incubation Project’ (DIPS), the aim being to develop a regional strategy to engage Black, Asian and Minority Ethnic communities within the social enterprise sector using models and outreach provided by practicing social entrepreneurs as the vehicle. It is also hoped to include the new strategy in the Social Enterprise Strategy for the East of England, due for review this year.
In addition to the regional level work, MENTER is trying to engage at local level. In this way MENTER is able to directly participate in delivery and hopefully identify ‘models of good practice’ that can be developed to support other communities – especially during the current recession.
Terry Harding, Head of Policy and Enterprise at MENTER, said ‘This a very exciting and challenging area of work. The main issue is the scale of the project and trying to ensure focus so that positive actions can be achieved. The incremental approach adopted by the Task Force will hopefully make it easier to both achieve and monitor progress. However, at the same time, it is important that action is seen to be taken locally and so MENTER will continue to work with local providers where appropriate. By this time next year I hope I will be able to report significant progress in the way that agencies both deliver services and work more effectively together to meet the needs of BME communities.’
If you would like to find out more about any of these areas of work or you feel that working with MENTER could add value to what you are already doing, please contact Terry Harding on Mobile: 07823 575188
If you would like to sign up to MENTER E-bulletins or Newsletters to keep up to date please submit your email address to office”at”menter.org.uk (replace “at” for @)
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