Britain’s non-white workers earn £3.2bn less than their white peers every year for same work
The Resolution Foundation has reported that Britain’s 1.9 million Black, Asian, and minority ethnic (BAME) workers face a “pay penalty,” earning considerably less than their white counterparts for the same work.According to the BBC, the research group interviewed a total of 100,000 people over a decade and concluded that British BAME workers collectively earned £3.2bn less than their white colleagues every year. The study weighted for outside factors such as education levels, degrees, contracts, gender, and occupation.
In April 2018, the government passed laws requiring companies with over 250 employees to report their gender pay gaps to reduce gender disparity. The Foundation hopes their report will prompt similar legislation for racial pay gaps.
The most significant conclusion was the effect on Black male college graduates. On average, they were paid 17% less than their white counterparts, while Pakistani and Bangladeshi men graduates were paid 12% less.
When it came to non-graduates, Black men were paid 9% less than their white peers, while Pakistani and Bangladeshi men were paid 14% less. The study noted that among female graduates, Black women had the largest “pay penalty” at 9%.
Kathleen Henehan, research and policy analyst with the Resolution Foundation, told the Guardian, “Black, Asian and minority ethnic workers have made important gains in the labour market in recent years… However, despite this welcome progress, many of Britain’s 1.6 million black, Asian and ethnic minority workers face significant disadvantages in the workplace.”
Henehan adds, “After the successful steps taken to expose and tackle the gender pay gap in 2018, we now need greater accountability on the ethnic pay gap in 2019.”