NATIONAL NEWS; Ethnicity pay gaps, UK: 2012 to 2022

Earnings statistics for different ethnic groups, using regression analysis to provide more insight into factors that affect pay, using data from the Annual Population Survey over the time period 2012 to 2022. The 5-category ethnicity breakdown provides comparable estimates across the UK, while the more granular 18-category ethnicity breakdown is only available for England and Wales.

1.Main points

In the UK in 2022:

• Black, African, Caribbean or Black British employees earned less (£13.53) median gross hourly pay than White employees (£14.35), which has been consistent since 2012.

• Country of birth had an impact on how much employees earned: UK-born Black, African, Caribbean or Black British employees earned more (£15.18), while non-UK-born Black British employees earned less (£12.95) when compared with UK-born White employees (£14.26).

• After holding personal and work characteristics constant, to provide an adjusted pay gap based on a like-for-like comparison, we find that UK-born White employees earn more on average than most ethnic minority employees.

• When adjusting for pay-determining characteristics, we see the pay gap narrow and in some instances reverse: for example UK-born Black, African, Caribbean or Black British employees, move from earning 6.5% more to earning 5.6% less compared with White employees.

• When looking at the cumulative effect of pay-determining characteristics, the factors that had the greatest impact were occupation, qualifications, geography, age and sex.

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