Welsh Government Lived Experience of Racism Repository

Ethnicity, poverty, and in-work inequalities in the UK

Published on 6 February, 2026.

Although there have been encouraging signs of progress, achieving true workplace equity for ethnic minority communities remains a persistent challenge. There is stark evidence of persistent disparities in the UK labour market, with certain ethnic communities consistently experiencing worse outcomes. Also clear is that in the context of deepening poverty in the UK, paid work offers less protection to adults and children in Bangladeshi, Black African and Pakistani households, who currently experience unacceptably high poverty rates (JRF, 2025).

Drawing on a range of studies, this review examines how labour market structures and institutions play a role in the disproportionate poverty levels experienced by Bangladeshi, Black African and Pakistani communities. With a particular focus on in-work inequalities, it discusses job quality, barriers to better paid work and the role of visa status. The review presents a complex picture of labour market-related factors that contribute to poverty risk and work outcomes. It also explores labour market-related levers for fostering more equitable experiences of work and improving livelihoods.

Attached files