British black, Asian and minority-ethnic (BAME) graduates are less likely to be employed than their white peers, despite increasing numbers obtaining degree, a new study has found.

According to a report by thinktank The Resolution Foundation, Indian and Caribbean graduates are 5% less likely to be employed than white graduates, while Bangladeshi and Pakistani graduates are 12% less likely.

This is despite the fact that the number of all working-age BAME people with degrees increased from 12% to 30% between 1996-1999 and 2014-2017, compared to an increase in the proportion of white British graduates from 12%  to 28% over the same period.

Kathleen Henehan, policy analyst at the Resolution Foundation, said: “The rising share of people going to university is a well-known British success story of recent decades.The progress made by black and ethnic minority groups is astounding, with the share of Indian, Pakistani and Bangladeshi graduates trebling in less than 20 years.

“But despite this success, graduates from a black and ethnic minority background still face significant employment and pay penalties in the workforce.”These labour market disadvantages are a big living standards concern and mean we risk failing to make the most of the investment made in their education.”