As the South Asian Heritage Month (SAHM) draws to a close, not only it is marked as a celebration of success stories but also a moment of reflection for the community. The month honours the journeys of our communities, celebrates resilience, and recognises the countless ways South Asians have shaped life in the UK, from cultural achievements, like rising star Ambika Mod’s impact in film and theatre, to political milestones such as Rishi Sunak becoming the UK’s first British Asian Prime Minister.
Yet, alongside these triumphs, the month also sparks vital conversations about the challenges that remain. Baroness Debonaire’s call for the removal of Lord Clive’s statue outside the Foreign Office has reignited debates about Britain’s colonial legacy, while many British-born South Asians still grapple with identity, racism, and feeling like outsiders in their own country.
Economic pressures add another layer of difficulty. Rising taxes and perceived hostility from policymakers are driving more Asian entrepreneurs abroad, fuelling concerns of a “brain drain” and slowing job creation, a trend hitting ethnic minorities hardest. The number of Londoners on company payroll dropped by 42,667 in July, compared to the same month in 2024, latest figures show.
The latest ONS data shows London employment at 4,349,064, down 42,667 (-0.97%) from last year. Meanwhile, median monthly wages rose 4.65% to £2,971. UK-wide payrolls totaled 30,285,820, a decrease of 169,987 (-0.49%).
City Hall research shared with Asian Voice shows that Bangladeshi and Pakistani women, communities who together represent about 4% of the UK population, face some of the highest unemployment rates, despite educational gains in their communities.
While South Asian Heritage Month shines a spotlight on our achievements, the real challenge is to carry its spirit forward year-round, working harder to break barriers and build a fairer future for all.
For example with rising costs and taxes on the rich levied by the Labour Party, trends show UK employment is slowing, with more and more entrepreneurs as employers and company directors are moving abroad. This trend is worsening job hiring prospects for Britons, more so for ethnic minorities, who already face significant barriers in recruitment.
‘Brain drain’ of Asian entrepreneurs and barriers for Pakistani and Bangladeshi women
Speaking to Asian Voice, Jaideep Prabhu, Professor and Marketing subject group at Cambridge Judge Business School said, “When UK employers slow recruitment in response to tax pressures, already underrepresented groups are very likely to feel a sharp impact. These communities, already facing systemic barriers, may find it even harder to secure opportunities. Having worked closely with Indian enterprises, I’ve seen the power of frugal innovation, creating more with less, to generate opportunity even under constraints. The UK should look to community-driven, resourceful strategies embraced in India to counteract the effects of cutbacks, ensuring that diverse talent doesn’t slip through the cracks.”
“Significant tax burdens and an adversarial climate can prompt talented Asian entrepreneurs and directors to relocate, risking a ‘brain drain.’ The knock-on effect of this is likely to be severe for marginalised groups, who lose potential mentors, representation, and investment in their local networks. India’s experience has shown that frugal innovators thrive best in ecosystems that welcome enterprise. For the UK, a competitive, supportive tax regime is essential, not just for headline business success, but for fostering opportunity and ambition in every community.”
At a same time, a new report by London’s City Hall Workforce Integration Network (WIN) and the National Institute of Economic and Social Research (NIESR) urges urgent action to support Bangladeshi and Pakistani women into the capital’s workforce.
In 2022, nearly half (48.1%) were economically inactive, with unemployment more than three times higher than men in their communities (16.9% vs 5.5%). The gender pay gap is stark, 60% for Pakistani women and 50% for Bangladeshi women, the highest of any ethnic group. Many face barriers such as unrecognised qualifications, limited digital skills, visa restrictions, and even pressure to change their names for interviews. The report calls for inclusive outreach, flexible working, recognition of overseas qualifications, and clear pathways for career progression.
Sunder Katwala, Director of race and identity thinktank British Future said, “There is an ever more complex pattern of opportunity and disadvantage in an increasingly diverse British society. The experience of Pakistani and Bangladeshi women illustrates this, with significant advances in educational outcomes. Bangladeshi pupils outperform the white British in GCSE results. Young women from both groups now have higher education participation rates than the national average too. It is not certain if that educational progress will narrow gaps in employment rates, in income inequality, child and family poverty, and wealth gaps at the rate it should. That this educational progress coincided with a period of low growth since the 2008 crisis and the Covid pandemic can increase hurdles for out-groups. The most impactful single policy change the government could make would be to lift the two-child benefit cap. This would dramatically reduce child and family poverty, disproportionately among minority groups.”
"Policy-makers also need a more granular understanding of how hurdles and barriers may now differ – by generation, by geography, or by recent migration history compared to the UK-born – in order to shape effective future interventions. Understanding the contribution of personal choice, family expectations and community pressures in decisions about family size and work patterns could help give women the support that they need in making their own choices. More transparent, real-time monitoring of where and why ethnic penalties persist in recruitment and retention, compared to peers with similar education levels, can inform interventions to tackle unconscious bias among employers,” he added.
Deputy Mayor for Communities and Social Justice, Dr Debbie Weekes-Bernard, said: “London is one of the most diverse cities in the world but shockingly too many Londoners experience huge barriers when trying to find secure, well-paid jobs. This research highlights the obstacles facing Bangladeshi and Pakistani women, and outlines how prejudice, discrimination and a lack of support severely limits their chances to succeed. We all have a role to play if we are to reduce this inequality, and from City Hall we’re working with communities, businesses and local leaders to help remove everyday barriers…”
South Asian Heritage Month is no longer just a cultural symbolism. It’s a reminder that representations must be matched by opportunities, and that the legacies we honour today must inspire urgent action to dismantle the inequalities that persist.
