Black and Asian workers are twice as likely to be unemployed as the UK's overall population, new figures show.
Th first annual report from the government's Ethnic Minority Employment Taskforce has revealed that the employment rate among ethnic minorities stands at 59.4% compared to 74.9% for the general population.
The figures also show that minority employees earn less than their white counterparts. Average weekly earnings for white workers were £376, compared to £347 for ethnic minorities.
Bangladeshi staff were the worst off receiving an average £235 a week, while Indians took home £373.
Although minority employment has risen by 1.4% over the past year, mainly due to more ethnic minority women securing jobs, ministers said the pay gap was not closing fast enough.
Jane Kennedy, Minister for Work, said: "These statistics are shocking, and that is why this cross-government task force has been created and is committed to bringing about change.
"All government departments and employers need to forge ahead and work together to ensure nobody is disadvantaged in their career prospects because of their ethnicity."
Brendan Barber, TUC general secretary, criticised the pay gap as making poor business sense.
He said, "Companies that only recruit from a narrow base are missing out on the wide range of experiences on offer in our many different communities
"We'e got to make it harder for discriminating employers to continue to get away with their prejudices."