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Aboriginal and Torres Strait Islander Health Performance Framework - Summary report

Employment

COVID-19 and employment data

The COVID-19 pandemic has had a substantial impact on employment (see also Australia's Welfare: employment and unemployment).

In 2021, the Census was held on August 10, during which most states and territories in Australia were under restrictions due to the COVID-19 pandemic. COVID-19 restrictions affected people’s labour force status, working hours, and attendance at their usual workplace (AIHW 2022f). For example, in 2021, 6.5% of employed people worked 0 hours, the highest ever recorded (with 4.1% in the 2011 Census being the second highest).

There were instructions on the Census website and online form to guide people in how to respond to questions on employment while in lockdown (AIHW 2022d). If the person was employed in the last four weeks prior to lockdown but was unable to work in the last week due to lockdown, they were instructed to select 'Yes, but absent on holidays, on paid leave, on strike or temporarily stood down'. However, complexities in interpretation of employment during lockdown may have affected how people responded to questions about their labour force status.

The employment rate – the number of employed people as a proportion of the population – remains much lower among First Nations people than non-Indigenous Australians. Education attainment is associated with employment outcomes, with people who have completed tertiary level education generally having better employment opportunities than those who have not completed further education after leaving school (National Skills Commission 2021). Two of the Closing the Gap targets relate to employment:

  • Target 7: By 2031, increase the proportion of Aboriginal and Torres Strait Islander youth (15–24 years) who are in employment, education or training to 67 per cent
  • Target 8: By 2031, increase the proportion of Aboriginal and Torres Strait Islander people aged 25–64 who are employed to 62 per cent

See Targets 7 and 8 in the Closing the Gap Information Repository.

In 2021, 52% (253,600) of First Nations people aged 15–64 (working age) were employed. The employment rate for First Nations people at working age was highest in Major cities at 58% and the lowest in Very remote areas at 32%. The employment rate was lower for First Nations people in remote areas (Remote and Very remote areas combined) and decreased from less remote areas to more remote areas (Figure 5.4).

First Nations people aged 15–64 had a lower employment rate than non-Indigenous Australians (52% compared with 75%), and this was true across all age groups (Figure 5.4). The gap in employment rates between First Nations people and non-Indigenous Australians aged 15–64 was higher in more remote areas, ranging from 17% in Major cities to 47% in Remote and very remote areas (Figure 5.4).

Figure 5.4: Employment rate (people aged 15–64), by Indigenous status and age group, and by Indigenous status and remoteness, 2021

The first column chart shows that among people aged 15 to 64, the employment rate for First Nations people was lower than that for non-Indigenous Australians across all age groups. The employment rate among those aged 25–34, 35–44 and 45–54, was around 57%–58% for First Nations people and 81%–82% for non-Indigenous Australians. The employment rate was lowest for those aged 15–24 and 55–64, among First Nations people and non-Indigenous Australians. The second column chart shows that the employment rate for First Nations people decreased with increasing remoteness, from 58% in Major cities to 36% in Remote and Very remote areas combined. For non-Indigenous Australians, the rate was higher than that for First Nations people across all remoteness categories.

Source: Measure 2.07, Table D2.07.3 and Table D2.07.6. AIHW analysis of ABS Census of Population and Housing 2021 (AIHW 2022c).

For First Nations people aged 25–64 (the target age group for the employment Closing the Gap target), the employment rate increased from 51% in 2016 to 56% in 2021. Between 2016 and 2021, the gap in the employment rates between First Nations people and non-Indigenous Australians aged 25–64 narrowed from 24.7 to 22.0 percentage points.

The employment rate for First Nations people aged 25–64 increased with each level of educational attainment. From 24% of those with no educational attainment or a Year 9 or below qualification combined, 45% of those with a secondary education at a Year 10 to 12 level, 72% of those with a Certificate III or IV level qualification, and 85% of those with a bachelor’s degree as their highest level of education were employed in 2021 (Table 5.1).

Table 5.1: Employment rate (%) for First Nations people aged 25–64, by highest level of educational attainment and remoteness, 2021

 

Bachelor Degree Level or higher

Advanced Diploma and Diploma Level

Certificate III and IV Level

Year 10 to 12

Certificate I & II Level

Year 9 or below/no education attainment

Total

Major cities

86

76

72

52

30

28

62

Inner regional

84

76

73

48

32

28

58

Outer regional

84

76

73

45

34

25

54

Remote

85

80

75

37

46

20

46

Very Remote

82

78

64

30

48

17

35

Australia

85

76

72

45

34

24

56

Note: Total includes people for whom educational attainment was inadequately described or not stated.
Source: Measure 2.07, Table D2.07.22. AIHW analysis of ABS Census of Population and Housing 2021 (AIHW 2022c).

First Nations people aged 25–64 with one or more long-term health conditions and who needed assistance with core activities had lower employment rates than those with no long-term condition, and those who did not need assistance. The employment rate:

  • ranged from 17% to 53% for those with one or more long-term health conditions, compared with 65% for those with no long-term condition
  • was 14% for those who needed assistance with core activities, compared with 62% for those who did not need assistance.

Many First Nations people face conflicts between their family responsibilities and the challenges of finding and maintaining employment (Venn & Biddle 2018). A recent study found that education, disability, and having spent time in prison were the most important factors underlying labour force participation (Dinku & Hunt 2021).

A lack of available jobs or not having a driver’s licence, among others, were reported as barriers in finding work. Among First Nations people aged 15–64 who were unemployed in 2014–15:

  • Nearly 2 in 5 (38%) in remote areas reported a lack of any jobs as a barrier to finding work, compared with 1 in 5 (22%) unemployed First Nations people in non-remote areas.
  • Nearly 1 in 5 (19%) in remote areas reported not having a driver’s licence as a barrier to finding work, compared with 1 in 3 (33%) unemployed First Nations people in non-remote areas (Table 5.2).
Table 5.2: Top 5 difficulties finding work, unemployed First Nations people aged 15–64, 2014–15

Remote

Non-remote

No jobs in local area or line of work 44% (5,700)

No jobs in local area or line of work 38% (15,500)

No jobs at all 38% (4,900)

Don't have driver's licence 33% (13,500)

Transport problems/distance 27% (3,500)

Transport problems/distance 33% (13,300)

Insufficient education, training, skills 22% (2,800)

Insufficient education, training, skills 32% (13,000)

Don't have driver's licence 19% (2,400)

No jobs at all 22% (8,800)

Source: Measure 2.07, Table D2.07.10 – AIHW and ABS analysis of National Aboriginal and Torres Strait Islander Social Survey 2014–15.

Transport access is closely associated with job opportunities. Lack of transport access can limit job options within a confined geographical area, create difficulties in committing to jobs with non-standard working hours, and negatively impact job performance and reliability due to long and unpredictable commute times (Rosier & McDonald 2011). In 2021, among 342,600 First Nations households, 88% owned or used at least one vehicle, while 12% did not have a motor vehicle (excluding households where the number of vehicles was not reported). The proportion of First Nations households with one or more vehicles was higher in non-remote areas (90%) compared to remote areas (68%) (AIHW analysis of ABS 2023a).

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