40 Percent of Bangladeshis and Pakistanis Unemployed in London

For the first time in the past decade, the highest number of children in Britain are growing up in families where no adult member is employed. Meanwhile, statistics show that nearly 39.5 percent of working-age Pakistani and Bangladeshi residents living in London are currently unemployed. This is the highest rate among all ethnic groups in the capital.

According to the latest data from the country’s Office for National Statistics (ONS), around 1.52 million children spent Christmas this year in households without any earned income—an increase of nearly 150,000 compared to last year. This is the highest figure in 11 years and reflects the fragile condition of Britain’s domestic labour market.

An analysis of government data reveals a stark ethnic disparity in Britain’s employment landscape. While the national unemployment rate stands at 5.1 percent, there are wide variations across ethnic groups. Unemployment among white people is only 4.3 percent, whereas among Black and Asian communities the rate is nearly double, at around 8.8 percent. Within this, the Pakistani and Bangladeshi communities are the most vulnerable.

In London, this disparity is even more pronounced. While 20.7 percent of white residents are unemployed, nearly 40 percent of South Asian residents are living without any source of income.

Geographically, London has now become the epicentre of the unemployment crisis. By the final quarter of 2025, London’s unemployment rate has reached 6.8 percent, significantly higher than the national average. The city’s heavy reliance on the hospitality and retail sectors has made it particularly vulnerable. The government’s newly announced increase in National Insurance contributions and the rise in the minimum wage have led many businesses to freeze hiring or carry out layoffs.

The implications for Britain’s economy are far-reaching. The number of households without earned income in the country has now exceeded 3 million. One of the key reasons behind this is long-term illness or physical disability. Statistics show that nearly 40 percent of members of workless households have exited the labour market due to illness since the pandemic. Economists have warned that this is pushing Britain into a “welfare trap,” where dependence on benefits is increasing instead of bringing working-age people back into employment.

The outlook for 2026 is also not very encouraging. Due to high interest rates and weak consumer confidence, Britain’s economic growth is expected to fall to 1 percent. There are concerns that the unemployment rate could rise to 5.2 percent by mid-2026.