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Midlands: The 21st century workforce

Author: Ruth Armstrong

Published: 10/05/2007 01:02

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Birmingham is a diverse city. But there is a high price to pay for diversity, if the statistics are to be believed.

The statistics tell us that Birmingham is the leader in multiculturalism, and it can boast that by the year 2010, it will be the first city in the UK and northern Europe that will have a greater black and ethnic minority population than the indigenous white population.

Statistically speaking, the broad statement ‘white ethnic minority population’ comes as part and parcel of a number of interesting figures according to Birmingham Professional DiverCity and, of course, the 2001 census:

- by 2010 the white population of Birmingham is predicted to reduce by 60,000 and the black and ethnic minority population is predicted to rise by the same number;

- in September 2000, seven years ago, the majority of children entering Birmingham’s primary school system were from ethnic minority groups;

- the population is ageing. By 2003 a quarter of the population was over 40 and this trend is set to increase; and

- Birmingham’s adult population has a worryingly low employment rate with only 64% of men and 55% of women aged 16 to 64 in work. The national average is over 74% for men and 64% for women.

Unemployment statistics by ethnicity

Unemployment statistics for Birmingham show that more than 6% of the adult population are unemployed, compared with almost 3% in cities such as Leeds, Sheffield, Bristol, Newcastle and 4% in Manchester. When you break down those figures by gender and ethnicity from the 2001 census, there are some stark realities.

- More than 20% of Pakistani, Bangladeshi, black African, black Caribbean or mixed-race men are unemployed compared with roughly half that percentage of white or Indian men unemployed.

- More than 21% of Pakistani and Bangladeshi women are unemployed, compared with roughly half that percentage of black African or black Caribbean women, falling further to 8.2% of Indian women and only 5.2% of white women.

Employee relations issues

So what do the numbers actually mean for employers in Birmingham in the 21st century? Does the change in ethnic make-up mean there are likely to be better employee relations? Fewer race discrimination claims?

Unfortunately, the correct answer is that it depends on who you ask. Employers with good employee relations are those who talk to their employees and engage in active dialogue. Those who have meaningful communication, and who engage their workforce in the goals and strategic direction of the business have good employee relations and reduced conflict. Employers who plan for change, who adopt flexible arrangements and value human capital are the ones that are geared up for the employment challenges of the 21st century. Good employers come in all shapes, sizes and ethnic backgrounds. Sadly, so do bad ones.

As uncomfortable as it will be to say it, employers in Birmingham will find themselves facing serious recruitment, skills and retention issues. Nothing new there, of course, but the cause of the issues in Birmingham will be different because of the multicultural mix. The very diversity that makes Birmingham what it is will cause some of its biggest challenges in the future. Birmingham Strategic Partnership identifies some serious inequalities across the city in terms of housing, poverty, access to education and social exclusion as the root cause of some of the employment challenges facing the city.

The ethnic make-up of the emerging workforce in the city will bring with it challenges of its own. For example, in the wake of 9/11, we were told that young Muslim men find it the hardest to obtain employment in this country. When they do succeed in obtaining employment, it is most likely to be in the lower paid, less skilled jobs. The accuracy of this statement is reflected in the statistics above. If this ethnic group is going to be an engaged, productive and contributing proportion of the workforce in the 21st century, the disaffection must be addressed. Vocational skills will have to be improved through education, training and engagement in order to train this pool of potential employees.

Actually there is a lot of debate on the issue at the moment and plenty of food for thought. Birmingham Strategic Partnership has set its economic strategy for the city for 2005-15 and the vision and key actions contain some acknowledgement of the problems facing the city in the coming years as it talks of “accessible employment opportunities for all” and a desire to create “a city which has made significant steps to address the inequalities between its diverse communities”.

Birmingham Strategic Partnership estimates that 32% of unemployed people in the region lack the basic skills needed to access and maintain employment. Educating young people is seen to be key to the longer-term future, with steps needed to tackle the poor qualification levels which are concentrated in some ethnic groups. There is an acceptance that education needs to be flexible to engage the excluded and disaffected groups, and that it must run alongside steps to improve access to employment opportunities for these communities.

What the future holds

As Birmingham continues its transition from a traditional manufacturing environment to a leading 21st-century city, the employment opportunities are wide reaching. At one end of the spectrum are the professionals and it is predicted that there will be more than 50,000 new jobs created in this sector by 2010, according to Birmingham Professional DiverCity.

Currently, less than 20% of the professional community are from black and ethnic minority groups, despite the fact that these groups currently make up 30% of Birmingham’s population and this is set to rise to 50% by 2010. Equipping this sector of the community with the skills they need will take time and there are obvious shortfalls in the meantime.

The skills gap is being addressed in some way by the fact that 26% of black or ethnic minority people aged 18-24 are studying for a degree, compared with 14% of the white population, but this does not necessarily mean that those graduating will have the vocational skills and experience needed to plug the gap.

At a recent HRXchange conference in Birmingham, David Taylor, head of regeneration at University Hospital, Birmingham, predicted tough times ahead for one of Birmingham’s biggest employers. He predicted a serious skills shortage at all levels of the labour market. One of the biggest issues facing employers will be the basic skills shortage at the bottom end of the labour market where English is not the first language and where there are basic literacy and numeracy shortcomings among the lowest paid members of the workforce.

David Taylor is not the only one to spot the issues for the future, with many industry and professional graduate recruitment programmes being run as far afield as eastern Europe because of the shortage of the local supply.

The construction industry is already feeling the brunt of the labour market shortfall across the country in terms of shortage of skilled craftsmen, tradesmen and labourers. Many of the traditional roles are being filled from eastern Europe, and this is causing headaches at site level across the region, with language barriers being a main cause for concern.

It is easy to see why Birmingham will face challenges in the employment arena in the 21st century, and why the rest of the country is watching carefully to see how the second city tackles the issues. The academic solutions are also easy to see and acknowledged by politicians and business leaders alike. Whether there will be sufficient funding and resources to tackle the size of the problem is another matter.

In the meantime, employers will just have to continue to compete for talent in a diminishing pool of skilled workers and utilise their own resources to train the workforce, at least for the time being.

Ruth Armstrong is a partner and head of the employment and health and safety practice at HBJ Gateley Wareing in Birmingham.

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