Recent research by a thinktank has highlighted that the Black, Asian and Minority Ethnic (BAME) communities face a disproportionate risk of losing their jobs once the government’s furlough scheme ends in the Spring.
According to a report published by the Resolution Foundation ethnic minorities are more likely to work in the hospitality industry, sector that has been hit hardest by the coronavirus pandemic.
One in 12 (8 per cent) BAME people in the UK are employed in hospitality jobs – amounting to 300,000 overall - compared to just one in 20 White British workers (5 per cent). The think tank said the ability of the hospitality sector to weather the pandemic and recover quickly would be crucial to the living standards of many BAME workers and their families.
Commenting on the report, Dr Halima Begum, chief executive of the Runnymede Trust, in a statement to The Independent said, “The hospitality sector is highly reliant on ethnic minority workers, particularly in lower paid jobs within the gig economy. Efforts need to be made to support those who face long-term unemployment as a result of furlough being wound down, whether we’re talking about White or BAME staff. With the right funding, this would not only alleviate household poverty in the short to medium term, it will support longer-term national growth as we emerge out of the pandemic.”
Data from the Office for National Statistics (ONS) shows the number of jobs in hospitality in June 2020 were down by 4.2 per cent compared to December 2019, compared to a fall of 0.8 per cent in the rest of the economy. This results in a loss of 106,000 jobs in hospitality over a six-month period, which is similar to the total fall in hospitality jobs which took place following the 2008 financial crisis – although then it occurred over a two-year period.
A separate report by the Resolution Foundation in September found that one in five (21 per cent) workers from an ethnic minority background had either lost hours or pay, been furloughed or were no longer working - slightly higher than the rate among workers overall (18 per cent). BAME workers were also more likely to no longer be working than the general working population, at 11 per cent compared to 7 per cent.
