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Social Exclusion and Employment

Published: January 2000

This is one of a series of topic reports that were produced to complement the Birmingham Economic Review 1999. The focus of this report is on how social exclusion manifests itself in the labour market and the consequences for the City and residents.

The DETR 1998 Index of Local Deprivation was constructed on 12 indicators at the district level. The City ranked fifth out of 354 local authority districts in England and has 10 of the 30 worst wards in England, encompassing a quarter of the City's population.

The report explores in detail the position of Birmingham compared to the average for England with regard to the 12 indicators.

• Unemployment: Unemployment in Birmingham is more than twice the national rate, and in 9 wards, the rate is more than three times the national rate.
• Long-term Unemployment: In July 1998, 40% of unemployed males in Birmingham had been unemployed for a year, compared to 29.5% UK average.
• Income Support Recipients: In 1996, over one-third of the working age population in Birmingham received income support compared to just under a quarter in England.
• Council Tax Support Recipients: More than a quarter of households in Birmingham received council tax benefits in 1996 compared to one in five in England.
• Children Dependent on Income Support: The proportion of children in Birmingham dependent on income support is two-thirds higher than the proportion for England.
• Standardised Mortality Rates: Birmingham's score for the SMR index for 1998 was 107 (UK=100), compared to 98 for England.
• Education Participation: About 46% of school leavers in Birmingham in 1995/96 did not continue in full-time education compared to 43% average for England.
• Educational Attainment: In 1998, the percentage of GCSE entrants with no result was 10% in Birmingham and 8% in England.

Further analysis shows that ethnic minorities, women, disabled people and older people experience even worse exclusion from the labour market in terms of earnings and access to employment.

Birmingham Inner City Household Survey 1998

A strong correlation exists between deprivation and unemployment. BEIC commissioned a survey of unemployed people in nine inner-city wards in order to assess the extent of social exclusion in the labour market, identify barriers to work and examine any special problems faced by disadvantaged groups.

Barriers to Employment

The following were identified as the main barriers to employment:

• Insufficient jobs available was identified by all as a barrier and young people in particular said there were not enough jobs suitable for their qualifications and work experience.
• Lack of work experience was a problem especially for young people and some ethnic minority groups.
• Poor pay rate was identified by 1 in 6 of survey respondents as a barrier.
• Lack of qualification and lack of training together constitute the most important barrier, identified by almost a third of respondents who wanted to return to work.
• The cost and access to childcare was especially important for women aged 25 to 34.

Implications of Social Exclusion in the Labour Market

The BEIC Inner City Survey also asked a range of questions on the impact of unemployment on people's lives. The results showed that only one in nine felt that becoming unemployed had affected the things they could do, with the main effect being on the ability to socialise and engage in sporting activities.