The ONS recently released updated Ethnicity Pay Gap Data, which showed that 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.
Ethnicity pay gaps are the percentage difference between the median gross hourly earnings of the reference group (White or White British employees) and the comparative ethnic groups.
