Open Society Foundations, set up by US billionaire George Soros, spent a year talking to residents of Higher Blackley, Greater Manchester for the research. It found they felt disempowered and disillusioned after years of mass immigration.
Last year Left-wing think-tank Demos, said Census data showed ethnic minorities are becoming less integrated in England and Wales.
Society cannot afford to leave communities like this behind
It found 4.6 million ethnic minority citizens – about 45 per cent of the total black and Asian population – now live in areas where whites are the minority, compared to 25 per cent 10 years ago.
The proportion of non-whites in Higher Blackley is now 15 per cent.
Locals said jobs were hard to come by, and TV shows such as Benefits Street did not help by presenting the white working class as lazy scroungers.
Amina Lone, report co-author, said: “This research reveals a complex set of influences impacting people’s lives in Higher Blackley.
“Society cannot afford to leave communities like this behind.”