The Race Inequality in the Workforce report was introduced in Parliament today as its authors called on the Government, mental health services and employers to tackle racial inequalities in access to good work.
Their findings showed that BAME millennials are 47 per cent more likely to be on a zero-hours contract, and have 10 per cent greater chance of working a second job.
They are also five per cent more likely to be doing shift work and are four per cent less likely to have a permanent contract than white workers.
Millennials in unstable employment also suffered poorer mental health, the study by the UCL Centre for Longitudinal Studies, Carnegie UK trust and Operation Black Vote.
The study draws on information from a nationally-representative group of more than 7,700 people living in England who were born in 1989-90.
It shows that although BAME workers on the whole had more trouble finding stable employment than their white counterparts, experiences in the job market varied for different ethnic groups.
Pakistani millennials, for instance, were more likely to be on a zero-hours contract or be working shifts, and less likely to have a permanent job than their white peers.
Meanwhile, Indian and Black Caribbean workers were no more likely than their white counterparts to be in these types of employment.
Black African 25-year-olds had lower odds of being in a permanent role and were more likely to be doing shift work than white workers of the same age.
But, Mixed-race, Indian and Black Caribbean millennials had similar chances of being in these types of jobs.
Only Black Caribbean 25-year-olds were more likely than their white peers to be working a second job.
The findings held even when other factors that could affect labour market success were taken into account, including gender, family background and educational attainment.
The research also showed that, on the whole, millennials from BAME backgrounds were 58 per cent more likely to be unemployed than their white counterparts.
But, it showed that even though ethnic minority groups faced more challenges in the labour market, the overwhelming majority of millennials were in permanent employment at age 25.
Lord Simon Woolley of Operation Black Vote said: “This report must be a serious wake up call for the Government, industry and our mental health practitioners.
“The race penalty in the workspace is further exacerbated by mental health issues. It’s a double hit if you’re from a BAME community. We can, however, turn this around, but we need collective leadership.”