The observation was made in an inspection report published this week on Oldham Youth Service. The report commended the service for leading the way on tackling the area's well-documented racial tensions.
Thanks to research by youth workers to build programmes and opening times around community needs, participation rose to 20.3 per cent of the 13 to 19 population this year from 16.3 per cent last year, said Ofsted.
But provision is underdeveloped for young Asian women and young people with disabilities, added the inspectors.
Paul Makin, acting director for education and cultural services at Oldham, said: "We're particularly proud of Ofsted's judgment that the service excels at bringing young people from all communities together."
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