Racial discrimination is still so rife that firms are missing out on key talent, according to a new report.

The study, published by the Chartered Management Institute, Department for Work and Pensions and the Institute for Employment Studies, examined the career aspirations and job-search methods of a range of diverse groups.

It found discrimination and prejudice remains a key issue, with one in three Asian managers citing ‘racial discrimination’ as a barrier to career progression. The data also showed that Asian and black managers feel more let down than white managers.

In addition, although 77% of those surveyed accepted their current role because of ‘development opportunities’, only 45% say this has happened. And while 76% look for jobs online, their skills are being missed with only 11% claiming to find suitable jobs via the internet

“This study shows that it is vital that employers take a close look at the methods they use to attract new recruits and to appeal to all groups, not just a limited band of potential employees,” said Stephen Timms, minister of state for Employment and Welfare Reform. “Understanding the aspirations of the whole workforce is key to recruiting and retaining the best employees.”