MOVING ON UP Improving employment outcomes for young black men in London

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MOVING ON UP Improving employment outcomes for young black men in London BRIEFING PAPER No 8 JUNE 2017 Moving on Up is an employment initiative helping young black men to find jobs and careers in London s competitive labour market. The Moving on Up ambition is to increase the employment rate for economically active young black men in London from 64% in 2014 to 84% by 2020. Within the Moving on Up programme, and in this Briefing Paper, young means age 16 to 24 and black includes people from black British, black African, black Caribbean, other black and mixed black ethnic groups 1. ONE: DATA HEADLINES Population More than 80,000 young men in London are from black and mixed black ethnic groups. Young black men make up almost 20%, or 1 in 5, of all young men in London. Employment In the period January to December 2016, the employment rate for young black men in London was 74%; that is, 74% of the young black men in London available for work were in employment. The employment rate for young white men in the same period was 89%. Economic activity In the period January to December 2016, the economic activity rate for young black men in London was 53%; that is, 53% of young black men in London were either in employment or available for and actively seeing employment. The economic activity rate for young white men in the same period was 67%. 1 There are some variations in the age range and ethnic groups within the data presented in the following sections. Please refer to the notes on page 6 for further information about definitions and sources of data. 1

Unemployment In the period January to December 2016, the unemployment rate for young black men in London was 26%, indicating that around 9,000 young black men were available for and actively seeking work. The unemployment rate for young white men in the same period was 11%. Graduate under-employment Research published by JRF shows that graduates from all ethnic minority groups are more likely than white graduates to be overqualified for their job. This is most acute for black African graduates. Source: www.jrf.org.uk/report/effect-occupation-poverty-among-ethnic-minority-groups 2

TWO: JOBSEEKERS ALLOWANCE CLAIMANTS Briefing Paper 7 reported on JSA claimant rates for December 2016.The most recent figures available are for April 2017. Between December 2016 and April 2017, there was a small decrease in the number of young black male JSA claimants in London, from 1,335 to 1,325. Across London, the percentage of young male JSA claimants who are black has remained unchanged since mid-2016 at around 35%. That is, 35% of all male JSA claimants age 16 to 24 in London are black. This proportion has increased since the MoU programme started; in March 2015 around 28% of all young male JSA claimants in London were black. Between December 2016 and April 2017: The number of young black male JSA claimants decreased in most MoU target boroughs but increased in Brent and Ealing. The percentage of all young male JSA claimants who are black increased in Brent and Ealing. Table I: Young black male JSA claimants in London and selected London boroughs Borough Number of YBM claimants Dec 2016 April 2017 Percentage increase % of young male claimants who are Percentage point change black BRENT Number 70 80 +14% Percentage 41% 43% +2 CROYDON Number 30 20-33% Percentage 46% 36% -10 EALING Number 60 70 +17% Percentage 34% 36% +2 HACKNEY Number 100 90-10% Percentage 54% 50% -4 HARINGEY Number 105 100-5% Percentage 54% 50% -4 LAMBETH Number 125 115-8% Percentage 63% 64% +1 LEWISHAM Number 95 95 0 Percentage 45% 45% 0 NEWHAM Number 65 60-8% Percentage 37% 34% -3 SOUTHWARK Number 40 20-50% Percentage 40% 36% -4 LONDON Number 1,335 1,325-1% Percentage 35% 36% +1 3

Table II: Number of young black men who need to come off JSA to reduce the YBM claimant rate to the YWM claimant rate, April 2017 YOUNG BLACK MEN YOUNG WHITE MEN No of YBM No of YBM % of claimants if who need % of Number Number pop rate was to come off Pop pop on Pop on JSA on JSA on same as for JSA to get JSA JSA YWM to this Brent 4,710 80 1.7 6,030 25 0.4 20 60 Croydon 6,220 20 0.3 8,710 20 0.2 14 6 Ealing 3,260 70 2.1 8,680 50 0.6 19 51 Hackney 3,630 90 2.5 7,780 45 0.6 21 69 Haringey 3,750 100 2.7 8,060 50 0.6 23 77 Lambeth 4,920 115 2.3 10,410 35 0.3 17 98 Lewisham 4,980 95 1.9 7,570 65 0.9 43 52 Newham 4,380 60 1.4 6,680 40 0.6 26 34 Southwark 5,120 20 0.4 10,180 20 0.2 10 10 London 86,530 1,325 1.5 252,900 1,315 0.5 450 875 Chart I: Proportion of young men on JSA in selected London boroughs, April 2017 Chart II shows how many times greater the YBM claimant rate is than the YWM claimant rate in each borough. The chart shows, for example, that in Brent the JSA claimant rate for YBM is 4.1 times greater than the rate for YWM. Chart II: Ratio of YWM to YBM claimant rates, April 2017 4

THREE: EMPLOYMENT BY SECTOR Young black people in employment in London are under-represented in some sectors and over-represented in others. Under-representation is greatest in the construction sector, followed by manufacturing, and professional, scientific and technical. Table III: Young people (16 to 24) in employment in London, by sector (all young people, no breakdown by gender) ALL ETHNIC GROUPS BLACK Ratio of black to ALL ethnic groups 1 % within % within Number Number group group A, B, D, E Agriculture, energy and water 2,927 0.7 327 0.6 0.86 C Manufacturing 9,538 2.2 832 1.4 0.64 F Construction 26,306 5.9 1,797 3.1 0.53 G Wholesale and retail trade; repair of 111,137 25.1 18,936 32.6 1.30 motor vehicles and motor cycles H Transport and storage 10,779 2.4 1,506 2.6 1.08 I Accommodation and food service 50,174 11.3 5,276 9.1 0.81 activities J Information and communication 20,688 4.7 2,138 3.7 0.79 K Financial and insurance activities 23,750 5.4 2,444 4.2 0.78 L Real estate activities 6,935 1.6 888 1.5 0.94 M Professional, scientific and 38,715 8.7 3,237 5.6 0.64 technical activities N Administrative and support service 27,082 6.1 3,602 6.2 1.02 activities O Public administration and defence; 11,925 2.7 1,494 2.6 0.96 compulsory social security P Education 31,549 7.1 4,232 7.3 1.03 Q Human health and social work 33,323 7.5 6,319 10.9 1.45 activities R, S, T, U Other 38,421 8.7 5,036 8.7 1.00 TOTAL all industry 443,249 100 58,064 100 1 This column indicates over or under representation of black people within industry sectors. A value of 1 means the same proportion of young black people are employed in this industry as for all young people. A value below 1 indicates under-representation and a value above 1 indicates overrepresentation. 5

DATA SOURCES AND DEFINITIONS Population (section one) Source: Annual Population Survey. Office for National Statistics. Social Survey Division, Annual Population Survey, January to December2016, Colchester, Essex: UK Data Archive [distributor], Black= Black/African/Caribbean/Black British/White & Black Caribbean/White & Black African Young = age 16 to 24 Employment and unemployment rates (section one) Source: Annual Population Survey. Office for National Statistics. Social Survey Division, Annual Population Survey, January to December2016, Colchester, Essex: UK Data Archive [distributor], Black: Black African, Black Caribbean or Black Other Young = age 16 to 24 Employment rate: The employment rate is shown as the proportion of economically active people who are in employment. The economically active population comprises those in employment plus those meeting the International Labour Organisation definition of unemployed (a person who has actively sought work within the last 4 weeks and is available to start work in the next 2 weeks, or has found a job and is waiting to start in the next 2 weeks). The employment rate is calculated by: employed employed +unemployed Please note that the employment and unemployment rates are derived from survey samples and are subject to error. When the population of interest is very small (e.g. young black men in London) the margin of error increases. The statistics in this section indicate trends and are useful for comparisons between groups but should not be read as an exact measure of the unemployment or employment rates or numbers for young black men. Jobseeker s Allowance claimants (section two) Claimant count source: https://www.nomisweb.co.uk/ Population data source: Greater London Authority GLA trend based population projections for 2016 http://data.london.gov.uk/dataset/gla-population-projections-custom-age-tables Black= Black/African/Caribbean/Black British/White & Black Caribbean/White & Black African Young = age 18 to 24 Employment by sector (section three) 2011 Census data from https://www.nomisweb.co.uk/ Black= Black/African/Caribbean/Black British/White & Black Caribbean/White & Black African Young = age 16 to 24 6

FOR FURTHER INFORMATION For more information or to discuss the contents of this Briefing Paper, please contact Jeremy Crook OBE, Director, BTEG jeremy@bteg.co.uk For more information about the Moving on Up programme, please contact Sioned Churchill, Director of Special Initiatives and Evaluation, Trust for London, sioned@trustforlondon.co.uk 7

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