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Issues

Gainful employment and the income it provides, is integral to the well-being of many working age Australians and their families. It is important in establishing financial independence and security. The employment and economic life of Indigenous people compares poorly with that of other Australians. Since the time of European settlement the economic life of Indigenous Australians has been affected by the alienation of their lands and resources and by policies of exclusion and marginalisation. Today the Indigenous economy is made up of three sectors;
1. private sector
2. public sector including welfare and Community Development Employment projects (CDEP)
3. Customary sector including harvesting of fish, wildlife and plants and production of art and artefacts for sale.
The following resource provides a detailed description of Indigenous economic life.
Source: Altman, J. & Hunter, B. (2005). Economic Life. In Macquarie Atlas of Indigenous Australia. Arthur, B. & Morphy, F. (Eds). Macquarie Library Pty Ltd; Macquarie University. pg 182-193.

Financial Stress
Household income provides an indication of the economic resources available to members of a household. Larger households generally require a greater level of income to maintain a similar standard of living to smaller households. Housing statistics from the ABS indicate that Indigenous households are larger on average to non-Indigenous households. Despite this, Indigenous households had a lower median weekly income than other households. In 2001, the mean household income of Indigenous persons was $364 per week compared to $585 per week for non-Indigenous persons.

The 1301.0 - Year Book Australia, 2004 (ABS, 2004) reports on the Income of Aboriginal and Torres Strait Islander peoples.

It includes a section on: Incomes of Aboriginal and Torres Strait Islander peoples
Below are some extracts.

Included is the graph below (Graph 7.10), illustrating the difference in income distribution between Indigenous and non-Indigenous persons. Income levels peak at between $250 and $300, which is the average rate of government benefits.

The mean household income increased for both Indigenous and non-Indigenous persons from 1996 to 2001, at a rate of11% versus 13%. Indigenous persons also had an increase in the number of household incomes in the bottom quintile (Graph 7.10) from 42% to 45%, with a decrease in all other quintiles.

Lower levels of household incomes can result in financial stress. The 2002 census data (ABS 2004) reported that 54% of Indigenous people aged 15 years and over, were living in households where the household spokesperson would be unable to raise $2,000 within a week in a time of crisis. This increased to 73% in remote areas. In comparison to non-Indigenous people, Indigenous adults are almost four times more likely to be living in a household that reports financial stress. The table below (Table 2.13) illustrates the types of strategies that Indigenous people use in managing their financial difficulties.

Employment Status
Indigenous people experience lower levels of labour force participation and employment and higher levels of unemployment than non-Indigenous people. In 2002, 64% of Indigenous adults aged 18-64 years were in the labour force, including 38% in mainstream employment. In comparison, 79% of non-Indigenous adults were in the labour force, including 74% who were employed. Indigenous adults were about two and a half times as likely as non-Indigenous adults to be unemployed (13% compared with 5%).

4704.0 - The Health and Welfare of Australia's Aboriginal and Torres Strait Islander Peoples, 2005

2.10 LABOUR FORCE STATUS, by Indigenous status - 1994 and 2002

Limited Employment Opportunities
Aboriginal and Torres Strait Islander employees are over-represented in low skilled jobs, with nearly a quarter employed as labourers or other unskilled occupations (compared to less than 10% of other Australians). Higher unemployment rates mean that some Aboriginal and Torres Strait Islander people have limited work experience - in 2001, 20.0% of Indigenous Australians were unemployed, compared to 7.2% of other Australians.

The main occupation groups for employed Indigenous persons were Labourers and related workers (24%) and Intermediate clerical, sales and service workers (18%), while the main occupation groups for non-Indigenous persons were Professionals (18%) and Intermediate clerical, sales and service workers (16%) (See Graph S6.4 below).

Educational participation and attainment for Indigenous people is significantly below that of non-Indigenous people. This may result in Indigenous people not having the appropriate knowledge and skills for the jobs they seek.

1301.0 - Year Book Australia, 2004
Labour force status of Aboriginal and Torres Strait Islander peoples

Family Issues and Responsibilities
Family issues and responsibilities are a significant barrier to attaining and maintaining employment for many Indigenous people. The types of issues experienced by Indigenous people include child care, aged parents, health of oneself and family, housing, deaths in custody, drugs and alcohol, legal issues, stolen generation and custody of children.
Useful Reading - Family and social factors, Labour focce status

Community Development Employment Projects
The Department of Employment and Workplace Relations manages the CDEP. This scheme enables Aboriginal and Torres Strait Islander peoples to work and train in activities managed by local Aboriginal and Torres Strait Islander community organisations. It is a significant part of the labour force in remote areas where the labour market may offer very limited employment opportunities. By providing Indigenous community organisations with funds to pay participants working on community projects, the scheme provides jobs and training for people who agree to forego an unemployment allowance. The CDEP supports participants to create job and business opportunities, build skills and encourage economic independence.

The Australian Bureau of Statistics measures CDEP participation in discrete Aboriginal and Torres Strait Islander communities. It is not identified on the standard census form. In the 2001 census, 17,800 Indigenous persons were identified as CDEP participants, which is equivalent to about 60% of the total number of participants (32,000) recorded Australia-wide for administrative purposes at that time. The majority (69%) of these people were living in Very Remote areas and a further 10% were in Remote areas.

Comparisons between Indigenous CDEP participants and Indigenous persons who were employed indicated that CDEP participants were;

• twice as likely to report part-time hours (74% compared with 38%)
• more likely to report working in a low skill occupation (79% compared with 60%)
• one-third as likely to report a non-school qualification (9% compared with 29%).

CDEP Program description

CDEP Guidelines