They were three times more likely to be unemployed and looking for a job than women generally and more than twice as likely to be economically inactive, the BBC on Thursday cited the report as saying.
Ministers must introduce a plan to tackle the inequalities before the end of the year, the MPs urged.
According to the report, evidence suggested that the biggest cause of the "acute" disadvantage felt by Muslim women was their religion.
"The impact of Islamophobia on Muslim women should not be underestimated," it said.
"They are 71 per cent more likely than white Christian women to be unemployed, even when they have the same educational level and language skills."
They faced particular issues of discrimination when applying for jobs because of the clothes some of them wear.
The MPs called on ministers to roll out "name-blind recruitment" to all employers so that recruiters do not see applicants' names.
This follows evidence that job applicants with white-sounding names are more likely to get an interview.
While 69 per cent of British working-age women were in employment, among Muslim women it was 35 per cent, official figures showed.
Among women, last year 27 per cent were economically inactive. However, among Muslim women the figure was 58 per cent, BBC added.
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