Unemployment Surges Among Bangladeshi and Pakistani Communities in the UK
New data reveals that Bangladeshi and Pakistani communities in Britain, particularly in London, face the highest unemployment levels in the country. A decade-high number of children are now growing up in households without any adult at work, highlighting the widening economic inequality.
Rising Child Poverty in Workless Households
According to the UK Office for National Statistics (ONS), around 1.5 million children spent Christmas this year in households with no earned income—nearly 150,000 more than last year. This marks the highest level in 11 years and underscores growing instability in Britain’s labour market, with ethnic minority communities disproportionately affected.
Among working-age populations, Bangladeshi and Pakistani citizens are hardest hit. In London, approximately 39.5% of working-age Bangladeshi and Pakistani residents are unemployed, the highest rate among all ethnic groups in the capital. By comparison, white Britons face a 4.3% unemployment rate, while unemployment among Black and Asian communities nationwide is nearly 8.8%.
London: Epicentre of the Crisis
London has become the focal point of Britain’s unemployment crisis. In the final quarter of 2025, the city’s unemployment rate rose to 6.8%, well above the national average of 5.1%. Analysts cite London’s heavy reliance on hospitality and retail, sectors employing large numbers of Bangladeshi and Pakistani workers, as a major factor in rising joblessness.
Government measures, including increases in National Insurance contributions and the minimum wage, have also strained employers. Many businesses have frozen recruitment or initiated layoffs, further limiting opportunities for low-income and migrant-heavy communities.
Structural Challenges and Economic Pressures
Analysts note that Bangladeshi and Pakistani households remain particularly vulnerable due to structural inequalities, sectoral job concentration, and long-term economic pressures. In London, roughly 40% of South Asian working-age residents cannot find work or earn income, compared with 20.7% of white residents. Community leaders warn that these disparities deepen economic insecurity and social exclusion.
Long-term illness and disability also drive the problem, as nearly 40% of individuals in workless households have left the labour market due to health-related conditions since the Covid-19 pandemic.
Growing Welfare Dependency and Future Outlook
Economists warn that concentrated unemployment among specific ethnic groups risks trapping families in long-term welfare dependency, especially in urban areas with high living costs. The outlook for 2026 remains concerning. Economists project that Britain’s economic growth will slow to around 1% due to high interest rates and weak consumer confidence, while unemployment will rise further to 5.2% by mid-2026.
Calls for Targeted Action
Muzibur Rahman, a councillor at Newham Council in London, emphasized the urgent need for government intervention. “The biggest challenge in the coming year will be bringing people, especially those on long-term benefits, back into work,” he said. “Without targeted support and job creation, inequality in communities like ours will only deepen.”
