Black and Asian people are two and a half times more likely to suffer unemployment than their white counterparts, the TUC has said.
The government's New Deal is little help, the TUC says.
Second-generation black and Asian workers - British born descendants of immigrants - are among the worst hit.
The TUC said the government's New Deal scheme had a worse record in finding jobs for black workers in London and the Midlands than elsewhere in the UK.
The union body called on government to act to ensure an end to racism at work.
"Black and Asian workers have not gained equally from Britain's expanding economy compared to the white workers," said Brendan Barber, TUC general secretary.
The government's New Deal for Young People scheme came in for criticism, for failing some black and Asian jobseekers.
The report, launched on the opening day of the TUC Black Workers' Conference, said the New Deal provides far fewer permanent jobs for black and Asian people than for white people.