Labour Market for Black Community in the UK - Essay Example

Labour Market Review for UK's black community Modern Britain is proud of its racial diversity and multicultural heritage, the government wearing the cosmopolitan image up its sleeve no less to project a climate of equality, tolerance, peace and harmony. It is important to mention that compared to even three decades ago, the average Briton's attitude towards ethnic minorities has undergone a paradigm shift; there is greater acceptance of "difference" be it in schools and university, vestibules of popular taste such as food, fashion and cinema, or even the workplace where the representation of minorities is at a more acceptable level than in the 1970's. In this report, however, we examine whether or not facts are contrary to evidence. From an unbiased perspective, we look into the position of the black community of Britain in the labour market, examine the key concepts and theories of labour market study as they apply to this community, uncover any signs of discrimination if present, and develop the findings to corroborate any evidence of lapses in labour policy. The entire focus of the research will be to look for unacceptable scenarios, and suggest effective solutions to the same. The official release of government agency National Statistics' Labour Market Review for March 2006, presents an unwelcome fact: it provides that compared to a White, a black person is three times more likely to be unemployed, and compared to a person of Indian origin, two times. (National Statistics Labour Market Review, p. 33) For the people of Bangladeshi and Pakistani origin, unemployment rates were as high as 15% (p.29). With this initial information at our hands, we are poised to take a closer look at something other than the tip of the iceberg. For a scientific study of labour market concepts, we have to understand the core mechanisms of labour market study. According to a standard textbook on the economics of labour market, the research has to be based on the following areas of discussion (Bosworth, D. Table of contents): Labour supply Labour demand Operation of labour market Human capital Employment relationships Competition, segmentation, Union effects, wages and earnings Economic performance Based on above mentioned parameters, we examine the present course of discussion about the position of black community in UK's labour market, and perform a detailed examination of current trends and future solutions. Labour supply Going back to the official dossier on labour market study, we understand that supply of labour to any economy can be classified into the following sub-categories: sex, age, disability, ethnic origins, qualification levels and type of employment (National Statistics Labour Market Review, p.20). According to the findings, employment rates for blacks were 15% lower compared to whites for the period of study, Winter 2004 to Autumn 2005 (p.22). Now we analyse the implications of other parameters for our focused discussion on employability of blacks. Some trends gathered for this purpose shall be put to use in our ongoing discussion, although individual data is absent for black people. It is mentioned that employment levels were significantly higher at 82% for people who had academically, qualified backgrounds (p.22). Also, the largest occupational group of employed people is that of managerial and senior roles, which lies at 15% (p.22). The percentage of part-time workers has risen to 25% in 2004-05 compared to 21% in 1984 (p.23). The percentage of teleworkers (self-employed people who prefer to work from the comfort of their homes) stands at 8% today, compared to 4% in 1997 (p.24). There has been a gradual rise in public-sector employment in 2005, very much comparable to 1991 levels (p.26), with the National Health Service (NHS) being the single-largest employer (p.27). Looking at futuristic trends, it is cited in demographic analysis that UK is ageing rapidly, with median age likely to rise from 39.5 years in 2004 to 43.3 years in 2031 (p.18) What do these figures implicate for the black community Although individualistic data is not present, we can make fair conclusions on the lower strata in which blacks find themselves in the labour market. Some findings mentioned by the Commission for Racial Equality (CRE) put to evidence the facts gathered from the labour market dossier. These data are mentioned in the official webpage of CRE, and quote National Statistics' findings. It is mentioned that young people in the age group 16-24 have highest unemployment rates, particularly those of Bangladeshi and Pakistani origin, and also black people (CRE webpage). Considering the premise that Britain is an ageing society with fertility rates for white women way less compared to even 3 decades ago, it can be gathered that immigrants are at the brunt of job hurdles, a basis to corroborate discriminatory practices being followed in employment. Black population in Britain rose through recent years because of increased immigration from Caribbean countries. Naturally, immigrants are not consistent with job markets. Economic activity for ethnic minorities is 59% compared to a national average of 75% (CRE webpage), a figure that has remained consistent since 2002. Also, unemployment levels vary from region to region. For example, London which boasts of the largest population of ethnic minorities (1.4 million), is way behind SE-England and SW-England in employment figures (76% compared to nearly 90% in other cases) (CRE webpage). Quoting Cabinet Office data census from 1992 to 2000, the CRE mentions that there is a great disparity between managerial jobs between whites and ethnic minorities except for Indians and Chinese; it has been previously mentioned that managerial jobs account for nearly 15% of current UK employment figures. Also according to CRE, ethnic minorities account a majority of what are called "occupational attainment"; examples being that Bangladeshis have an inclination towards restaurant jobs, and Pakistanis towards taxi-drivers or chauffeurs. There is little room for growth in such sectors, and it is fair to assume that blacks too suffer for the same leaving no doubt that they pose to be less academically-qualified, and as mentioned previously, less likely to secure permanent jobs. Labour demand According to the same Labour Market Review of the official dossier, key metrics of labour demand are: vacancies, skill shortages, job density according to region, distribution of job skills depending upon occupations, and finally, demand for labour according to economic cycle. Some trends worth giving attention to are: skill shortages are predominant in sales, professional and managerial positions (p.13). The distribution, hotels and restaurant business have the highest vacancies among all other: a 2005 figure comes at 188,100 out of total vacancy of 639,100 in the economy (p.5). Employment in services sector grew significantly from 61% in 1978 to 82% in 2005; for manufacturing the figure fell from 28% to 12% in the same corresponding period (p.5). The hotel and restaurant industry is in the need for such high vacancies only because it operates on high margin. According to a report published at the website of Trade Union Congress, a larger percentage of black people were working in those areas where average pay is way below the UK's National Minium Wage (NMW). The Restaurant business, and in fact this whole unorganised sector has seen a rise of black employment in recent years, 7% compared to white figures of 4% (TUC website). Consequently, these jobs being less secure compared to say, the job of a professional or manager, blacks are increasingly on the dole because of the tenuous nature of such jobs, affecting their presence in national-level economic activity. Also blacks being less qualified educationally, it prevents them from taking advantage of the corresponding boom that has been recorded in the services sector. Similar figures can be said for lower presence of blacks in sales, professional and management jobs. Thus, although there has been an improvement in black employability compared to earlier decades, the fruits are not being reaped because of present situation. Operation of labour market Labour being such a necessary factor of production, it is important to understand the operations which govern its connection to the economy. Any labour market operates on the basis of demand and supply, earnings and wages, and overall costs of labour. For some trends woth looking into, in 2005, the average gross weekly pay of full-time employees in the UK stood at 431 pounds; at least 1.3 per cent of all jobs in the country were considered lower than minimum wage with the hotel and restaurant industry operating at levels as abysmally low as 271 pounds (National Statistics Labour Market Review, 2006, p.43). Since it has been repeatedly stressed in this report that unemployment figures for blacks are three times higher than that of whites, and that blacks are less likely to draw advantage of high-end and professionally-skilled pay sectors such as business and finance, IT and the self-employed entrepreneurial space, overall cost of labour for blacks remains less influencing their steady employability in the unorganised sectors or beckoning their dependence on unemployment benefits. Human capital Human capital refers to the tangible and intangible skill-sets possessed by an employee that translates into earnings for the enterprise in which he exercises his labour. It is defined as the sum of skills, knowledge, experience and educational qualifications possessed by a person (CRE webpage). A CRE report categorically mentions that being an important supply-side determinant, human capital reports must not be neglected. It unfailingly states that children of Pakistani, Bangladeshi and Black Caribbean descent score poorly in terms of human capital, and there is much room for improvement, and that among blacks, there is widespread gender inequality in relation to economic opportunity (CRE webpage). Employment relationships There are innumerable factors that govern employment relationships for blacks in the UK; blacks are most affected due to geographical problems, poor health issues, lack of child care facilities and lack of mobility. Geoographically speaking, more than 70% of ethnic minorities including blacks live in 88 deprived areas earmarked by National Labour Review report (CRE webpage), and thus bear poorer employment opportunities. Poor health issues and lack of child care facilities only tend to compund the problem, particularly for females among blacks; it's been reported that disadvantaged wards have only 6-8 child care units per 100 children compared to the national mandatory average of 12-14 per 100 (CRE webpage). Also, blacks tend to live in deprived areas and being economically disadvantaged, are less likely to travel long distance for work, and more likely to depend on public transport for their mobility; a factor that again affects their chances of getting suitable employment (CRE webpage). Competition, segmentation, Union effects, wages and earnings According to reports documenting racial discrimination at workplaces, blacks tend to be at the receiving end of injustice in some cases where all other qualifications match except for ethnicity. For example, discrimination tests conducted between 1980 and 1994 reveal that white applicants were twice as likely to be accepted for a job interview compared to Black Caribbean and Asian applicants (CRE webpage). Competition forces also steadily affect employment rates for blacks compared to other communities. According to reports cited from a Trade Union Congress webpage, for the period cited in the range of 1990's, employment rates for black men fell 6% from 65% to 59% compared to a 3% fall for white men, and black women witnessed a 3% fall compared to white women who had actually a 2% rise (TUC webpage). It is clear that this cycle of deprivation is making the job market trends increasingly redundant to the black workforce. Union effects play a major role in ensuring justice at the workplace, and have actually contributed to the betterment of the black community in the workplace compared to the 1970's. In a set of recommendations, the Trade Union Congress has urged the government to unconditionally accept these principles if it were to guarantee equality in the workplace, and redress any grievances if there (TUC webpage). Ethnic monitoring at the workplace should be made mandatory to all employers. It is incumbent upon all members of the Trade Union Congress to monitor statistics on ethnic participation, and thus, ensure that it ultimately leads to recruitment of ethnic labour. Government endeavours to end discrimination must be given a high priority, and especially in those areas where blacks are living deprived of essential resources, all in ending what is perceived as double discrimination. Increased participation is sought from members of the Black community in welfare-work programmes, especially New Deal. Focused investment to be made in those areas where there are "gaps" in part, to avoid what is known as "double-discrimination" The National Minimum Wage to be periodically revised in order to address the situation of blacks who are trapped in low-paid work. For any discussion on anti-discrimination measures to be adopted, we must take cognisance of existing policies on anti-oppressive and racism at workplace. The UK is currently governed by the provisions of the Race Relations Act (1976) which explicitly covers anti-discrimination measures to be enforced at the workplace. The provisions are further strengthened by Race Relations (Amendment) Act (2000) and Disorder Act (1998) which makes racist violence a criminal offence. (Racialjustice webpage) Apart from these legal acts, there are certain anti-oppressive duties which must be followed at in the workplace. It is incumbent upon public authorities to end all forms of racial discrimination, and foster an environment of equality for everyone. Employers are required to monitor their workplace environment from time to time and eliminate any racial prejudices, if there. There are several specific duties also, governed by independent bodies such as the Commission for Racial Equality (CRE). In general, UK anti-racism and anti-discrimination laws are consistent with norms of International Labour Organisation (ILO). Economic performance Although as discussed so far, a lot needful is to be done in respect to compatibility with white standards, the economic growth of Britain from a centrally-planned structure of the 1970's to a privately-participated one has enabled blacks to better their employment fortunes. Prime Minister Tony Blair recently reiterated his pledge to end all forms of inequality in the labour market by 2013 (1990 trust webpage). Alternative theories and recommendations So far we have looked into microeconomic and macroeconomic aspects of the current picture of the black community's economic position within the broader framework of UK's labour market. The facts uncovered in this mission have enabled us to gain a stronger foothold into the situation at hand. It follows from here that discrimination and prejudices do exist in the workplace, and given the backlog of the black community vis--vis their white counterparts, it takes more than just economic theory to solve the present situation. We need to examine the situation from a personal viewpoint as well; what are the factors which prevent members of the black community from fully tapping into the fruits of economic opportunity, why are they perceived by potential employers to be less capable of in holding certain jobs especially those that pertain to management and professional expertise, what constitutes their propensity to be drawn in towards certain occupations in preference to others, how do members of other ethnic communities including whites perceive them as co-workers, colleagues and important members within their own realm. One issue that is a burning topic today is that of ethnic and racial segregation. The tendency to ghettoise and segregate communities can lead to systemic isolation from the mainstream and preclude access to information resources such as professional training modules for the advancement of one's career, and it can ultimately, put a community at a severe disadvantage over other communities. The outer-city suburbs of London and other major cities house the biggest concentration of blacks, and according to the Labour Market Review discussed earlier, are way behind in terms of economic opportunity compared to their more affluent inner-city areas. This compartmentalisation and marginalising over a long period of time, is the primary factor that can fail the most desirable reform in towards promoting racial equality at workplace and other areas. Immigration reform is also a necessary prerequisite to achieving stable performance at the workplace of blacks who along with other ethnic groups, face greater difficulty in securing work permits and social security insigne compared to say, Eastern Europeans. Any prejudiced motive towards immigration creates a widening gulf in relation to trust and rapprochement, and can affectedly, hamper psychology of workers at their workplace, thereby leading to declined productivity. The rules are clear: if a person feels unwanted in any environment, it is natural to expect poor results. This is not to say that all British institutions engage in unfair conduct but, still a lot is desirable in terms of developing a warm, genial and friendly atmosphere for workers to thrive, and prosper without fear or favour. A list of measures to be implemented as put by Trade Union Congress for the government in relation to racial problems can help expedite matters (TUC website): "The government mandatorily take extra measures to address race discrimination in all sectors of the labour market, central to it should be the extension of the positive duties mentioned in the Race Relations Act", which bear upon public and private agencies to take a more proactive stance against any forms of racial discrimination existing in the workplace, in effect providing for a more warm, affable, conducive and just climate to foster equality in all senses: opportunity, educational fulfilment and a climate for growth. "The government must use public procurement as a lever to improve the employment of black workers by explicitly including the promotion of race equality in the promotion of contract criteria and ensuring that promotion of race equality forms part of the value for money criteria in the awarding of contracts." Such measures often help in putting disadvantaged communities on a more even platform vis--vis more affluent communities. The United States is a case in point; ever since the institution of minority reservation in educational institutions, the SAT scores (a scholastic criteria for university education in the US) for underprivileged communities has seen a sharp rise. These are what we can call as positive, proactive measures. "The establishment of workplace equality representatives on a statutory footing to facilitate the independent collective representation of workers on issues of equality and discrimination in the workplace". This essentially means laying down a broader framework of solid principles, to institute practical reform at each stage of discussion of bettering minority rights in the workplace. Blacks must be able to negotiate their rights of equality from a more sound footing, once the constitution upholds their power to do so, at each step required. More engagement must be sought with agencies like the Commission for Racial Equality to obliterate prejudice at the workplace. "Employers and trade unions through the use of collective bargaining develop clear action plans to tackle institutional racism and to establish targets, with clear time limits to achieve fair representation of black workers at all levels in the workplace." It is one thing to talk about reform at the workplace, it is quite the other to work on removal of social prejudices. The ultimate aim should be to achieve a fair and congenial environment to achieve dynamic growth for an organisation, by developing a climate of acceptability by one and all, for all. References Bosworth, D., Dawkins, P., Stromback, T. (1996). The Economies of the Labour Market (Modern Economics), Prentice-Hall, NJ Black Information link (1990 Trust) (2004). Retrieved 14 May 2006 from http://www.blink.org.uk/pdescription.aspkey=3192&grp=62&cat=214 Commission for Racial Equality (CRE) (2006). Statistics: Labour market. Retrieved 14 May 2006 from http://www.cre.gov.uk/research/statistics_labour.html Commission for Racial Equality (CRE) (2006). Race Relations Act. Retrieved 14 May 2006 from http://www.cre.gov.uk/legal/rra.html National Statistics. (2006). Labour Market Review. Journal of National Statistics, UK Trade Unions Congress (1999). Black and excluded. Retrieved 14 May 2006 from http://www.tuc.org.uk/em_research/tuc-365-f0.cfm Trade Unions Congress (2004). Black workers, jobs and poverty. Retrieved 14 May 2006 from www.tuc.org.uk/welfare/tuc-10172-f0.pdf Read More