Indigenous Employment: Aboriginal Job Market Crisis

As Australia’s job market faces a significant downturn, the situation is particularly dire for Indigenous Australians, who already contend with substantial employment challenges.

And recent data from the Australian Bureau of Statistics (ABS) and SEEK underscores the precarious state of employment, with broader implications for Indigenous communities.

Fore example, Yarra Capital’s chief economist Tim Toohey has highlighted the mismatch between job creation and the influx of migrant workers, resulting in a rising unemployment rate.

And according to Toohey “net migration is currently supplying 1.4 people for every new job created” worsening job scarcity for non-migrant and Aboriginal workers.

Additionally, the latest SEEK employment data corroborates these concerns:

• National job ads fell by 1.5% in June and 17.1% year-on-year.
• Applications per job ad increased by 3.0%, reflecting heightened competition for fewer job opportunities.

Aboriginal Job Trends

Indigenous Australians, who already experience lower employment rates compared to their non-Indigenous counterparts, are particularly vulnerable in this contracting job market. According to the Australian Institute of Health and Welfare (AIHW) the employment rate for Indigenous Australians aged 15-64 was 52% in 2021, significantly lower than the 75% rate for non-Indigenous Australians​.

“In 2021, the proportion of First Nations people who were employed decreased consistently with increasing remoteness, from 58% in Major cities to 30% in Very remote areas.” – AIHW

The AIHW reports that the primary industries employing Indigenous Australians include:

• Health care and social assistance (16%)
• Public administration and safety (10%)
• Construction (10%)
• Retail trade (9%)
• Education and training (9%)​​

Despite representation in these sectors, Indigenous Australians face a higher unemployment rate, with 7.4% of the working-age population unemployed in 2021 compared to the national average​​ and this disparity is even more pronounced in very remote areas, where the unemployment rate climbs to 8.9%.

Several factors contribute to the employment gap for Indigenous Australians:

• Opportunities: Many job opportunities (and funding) from Indigenous Government departments are full of non-Indigenous people and there’s a lack a pathways for Indigenous people to get these jobs. (note: obviously we want the best person for the job in the position (to have a bigger impact for community) but there should be pathways for Indigenous people to upskill and fill the positions in the future.)
• Cultural Competency: A lack of culturally safe workplaces impacts job retention and satisfaction among Indigenous employees, further hindering employment progress​.
• Education: Lower levels of educational attainment limit employment opportunities, as those with higher education levels tend to have better job prospects​.

The National Agreement on Closing the Gap aims to improve employment outcomes for Indigenous Australians, with targets to increase the employment rate for Indigenous youth and adults by 2031​ but achieving these goals requires a comprehensive approach that includes:

• Tailored Employment Programs: Culturally appropriate job training and employment programs are essential to support Indigenous job seekers.
• Inclusive Work Environments: Workplaces must foster cultural competency and inclusivity to retain Indigenous employees.
• Education and Training: Enhancing access to education and vocational training for Indigenous Australians can improve job prospects and employment rates.

So as Australia grapples with a broader job market crisis, the impact on Indigenous Australians is a critical concern.

Because policymakers and employers must work together to address these disparities, ensuring that Indigenous Australians have equitable access to employment opportunities and supportive work environments.

And the commitment to Closing the Gap is crucial not only as a policy goal but also as an imperative for achieving social justice and economic inclusion…. but much remains to be done, and government officials must move beyond accepting the status quo because we need results and real progress.