Bangladeshi and Pakistani communities in Britain, particularly in London, are facing the highest levels of unemployment in the country, as new figures show a decade-high number of children growing up in households where no adult is in work.
Data from the UK Office for National Statistics (ONS) show that around 1.5 million children spent Christmas this year in households without any earned income, nearly 150,000 more than last year.
The figure marks the highest level in 11 years and reflects growing instability in Britain’s labour market, with ethnic minority communities bearing a disproportionate burden.
Among working-age populations, Bangladeshi and Pakistani citizens are the worst affected.
In London, around 39.5% of working-age Bangladeshi and Pakistani residents are unemployed, the highest rate among all ethnic groups in the capital.
Nationally, the overall unemployment rate stands at 5.1%.
However, the rate among white Britons is significantly lower at 4.3%, compared with nearly 8.8% among Black and Asian communities.
Analysts say Bangladeshi and Pakistani households remain particularly vulnerable due to structural inequalities, sectoral job concentration and long-term economic pressures.
The gap is even wider in London.
While about 20.7% of white working-age residents in the capital are unemployed, nearly 40% of South Asians are without work or any source of income.
Community leaders warn that such disparities are deepening economic insecurity and social exclusion.
London has emerged as the focal point of Britain’s unemployment crisis.
In the final quarter of 2025, the capital’s unemployment rate rose to 6.8%, well above the national average.
Economists point to the city’s heavy reliance on hospitality and retail, sectors that employ large numbers of Bangladeshi and Pakistani workers, as a key factor behind the rising joblessness.
Recent government decisions to increase National Insurance contributions and raise the minimum wage have further strained employers, industry sources say.
Many businesses have frozen recruitment or initiated layoffs, worsening prospects for low-income and migrant-heavy communities.
The wider economic impact is becoming increasingly visible.
The number of workless households across Britain has now surpassed three million.
Long-term illness and physical disability are major contributors, with nearly 40% of individuals in workless households having exited the labour market due to health-related conditions since the Covid-19 pandemic.
Economists have warned that the growing concentration of unemployment among specific ethnic groups risks trapping families in long-term welfare dependency, particularly in urban areas with high living costs.
The outlook for 2026 remains bleak.
Britain’s economic growth is projected to slow to around 1% amid high interest rates and weak consumer confidence, while unemployment is expected to rise further to 5.2% by mid-2026.
Muzibur Rahman, a councillor at Newham Council in London, told Dhaka Tribune that addressing unemployment among Bangladeshi and Pakistani communities must be a priority for the government.
“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.”
