A new study reveals that BAME graduates still face major job gaps when trying to seek employment. Despite an increase in ethnic minorities gaining degrees in recent years, it shows an imbalance between universities and companies.

The findings, conducted by Resolution Foundation, suggest that this demographic face “employment and pay penalties” due to these gaps. However, it did show positive statistics regarding higher education.

It reported that the percentage of working-class people from ethnic backgrounds with degrees had risen. Between 1996-99, the percentage stood at just 12%. But now, between 2014-17, it witnessed an increase, rising up to 30%.

The proportion of working-class Indians, Pakistanis and Bangladeshis with degrees also experienced an increase. Their figures now stand at 50%, 30% and 25% respectively. Resolution Foundation also found a strong growth of employment in recent years.

However, this wasn’t reflected in the employment of minorities. The think-tank revealed 12% of Pakistani and Bangladeshi graduates found themselves less likely to be working. Indians and Black Caribbeans also faced a jobs gap of around 5%.

The study also reported Bangladeshi and Black African graduates twice as likely to work in low-paying jobs. Despite their degree and its intended career prospects.

With these worrying findings, it shows no correlation between ethnic minorities gaining a degree and entering a prosperous career. Resolution Foundation suggested that more progress is required for the labour market to match with educational attainment.

An Imbalance for Graduates

Resolution Foundation’s policy analyst Kathleen Henehan explained:

“The rising share of people going to university is a well-known British success story of recent decades. The progress made by black and ethnic minority groups is astounding, with the share of Indian, Pakistani and Bangladeshi graduates trebling in less than 20 years.”

She added: “But despite this success, graduates from a black and ethnic minority background still face significant employment and pay penalties in the workforce.

“These labour market disadvantages are a big living standards concern and mean we risk failing to make the most of the investment made in their education.”

Some believe that university institutions play a role in these significant job gaps. For example, National Student Union’s Amatey Doku suggests that Russell Group and Oxbridge universities are not taking enough action in bridging these gaps.

He also explained how universities upgraded from poly-technics in 1992 mostly awarded BAME degrees. Doku said:

“They are obviously giving graduates the skills and the good degrees that are required by the jobs market and society as a whole but they aren’t seen in the same regard or esteem as the more research-intensive universities, like those in the Russell Group and Oxbridge.

“What that means, and as the report has shown, is that you do get this disparity. Universities are meant to be this great leveller and are simply not doing the job required.”

These findings add to the large realisation of how racial inequality still plagues workplaces. Published before the UK’s first racial audit, it follows similar conclusions to this government-led project. In the audit, it found a higher likelihood of BAME candidates facing unemployment.

As a result, the government plan to launch a series of programmes, tackling “hot spot” areas in the UK. They aim to tackle the issues presented by the audit. But many will hope they also address this concern surrounding BAME graduates.

These job gaps in the labour market show an imbalance of prospects for BAME and white graduates. But companies can also aid in tackling this issue. By placing diversity as a key priority and employing candidates on their merits rather than race.

Some companies may soon begin this process. A government-backed report has urged FTSE 100 businesses to implement new measures to improve their diversity. Targets that hopefully other companies will pursue in their own workplaces.

Perhaps then, in time, all graduates will face an equal level of prospects. With employers focusing on their degree and skills instead of ethnicity.