A new briefing highlights shocking inequalities faced by people in minority ethnic communities in Scotland, with unequal access to secure, well-paid work, affordable housing and social security contributing to significantly higher poverty rates for this group.
Its key findings include:
- Almost half of children in minority ethnic communities in Scotland are growing up in poverty (48%). This is double the rate for all children (24%)
- Workers from minority ethnic communities earn on average £2,300 less per year than white workers
- These workers are more than twice as likely (11%) to be on insecure work contracts compared to white workers (5%)
- 30% of minority ethnic households rent their homes privately which is generally the most expensive type of housing, compared to 13% of white households
The analysis by the Joseph Rowntree Foundation (JRF) shows two in five people in minority ethnic communities in Scotland live in poverty, which is twice the national average.
While poverty rates for white people have remained relatively stable over the last 20 years, for people in minority ethnic communities poverty has increased.
Shockingly, almost 1 in 2 children in minority ethnic communities grow up in poverty. In 2017 the Scottish Parliament unanimously agreed ambitious targets to reduce child poverty to under 18% by 2023/24, and to under 10% by 2030. In doing so they identified several ‘priority groups’ including minority ethnic families.
Worryingly, Scotland is not on track to meet these targets, and in this ‘priority group’ poverty levels have been steadily increasing.
The analysis paints a stark picture of the labour market for minority ethnic people in Scotland, one of comparatively low pay, high underemployment and high job insecurity compared to white people, as well as high in-work poverty. A worrying 3 in 10 minority ethnic people are in poverty despite at least one person in the family working, compared to 1 in 10 white people.
As well as a significant pay gap of £1.26 per hour compared to white workers, workers in minority ethnic communities are also more likely to be ‘underemployed’, which is not being able to work as many hours as desired, and to be employed on insecure contracts.
15% of minority ethnic workers were underemployed in 2019, compared to 9% of white workers. Insecure contracts such as zero hours, temporary and seasonal contracts are characterized by a lack of predictability as to when and how many hours will be worked and are a driver of in-work poverty.
These are more than twice as common among minority ethnic workers (11%) compared to white workers (5%).
The report also highlights that minority ethnic women are significantly more likely to be economically inactive (45% compared to population average of 22%) but a lack of data prevents detailed analysis of the drivers behind this.
Existing research suggests that caring responsibilities, a lack of suitable, affordable childcare, and discrimination based on ethnicity, gender and religion all play a part.
As well as these constraints on ability to earn, the report also finds that it costs more to be from a minority ethnic community in Scotland. You are more likely to live in unaffordable housing, and more likely to live in the private rented sector which is generally the most expensive tenure and one that has fewer rights and a higher chance of having to move compared to other tenures.
Only 4% of people from minority ethnic communities are homeowners in Scotland, with only 1% of this group enjoying the security of owning their home outright without a mortgage.
JRF is urging far greater urgency from the UK and Scottish Governments, along with employers and trade unions, to create a labour market that offers equal opportunities for minority ethnic workers and offers a route out of poverty.
A key frustration in compiling the report was the lack of data available for people from minority ethnic communities in Scotland, which lags behind what is available for the white population. It creates a deeply concerning inequality in Scotland’s ability to understand the high poverty rate for this group, let alone tackle it.
Chris Birt, Associate Director for Scotland at JRF said: “While it is wrong that any child in Scotland is growing up in poverty, it is appalling that children from minority ethnic communities are so much more likely to have their childhoods blighted by hardship than their white peers.
“The clock is ticking on our child poverty targets, and it is deeply concerning that things are actually getting worse, not better, for children in minority ethnic communities despite them being a priority group for the Scottish Government. But this is not just about meeting targets. It is about stamping out the appalling racial inequalities that are holding back children across our country.
“Higher poverty rates for people in these groups are frightening but they are not inevitable. Our analysis suggests that minority ethnic communities face barriers at every turn, from employment to housing to social security support. The UK and Scottish governments, and employers, must work with urgency to remove these barriers.
“If the Scottish Government wants to reduce racial inequalities in Scotland it must start collecting the appropriate data. Children in minority ethnic communities have been named a priority, but until we can accurately measure the problem, how much of a priority can they really be?”
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