CAEPR Topical Issue 1/2014

M. Gray, B. Hunter and N. Biddle

Abstract

Relatively low rates of employment are one of the reasons for many of the poor economic and social outcomes experienced by Indigenous Australians. Increases in the rate of Indigenous employment would result in significant economic gains to the individuals who move into employment, and their families and communities, to the government who would receive higher tax revenues and have lower social security outlays, and the economy as a whole via the increases in the effective labour supply. The existing research also finds that there are health and social benefits that flow from paid employment (e.g. Biddle 2011; Hunter & Gray 2013).

This paper, using the latest available data and research, provides estimates of the likely economic and social benefits of increasing Indigenous employment to the same level as in the non-Indigenous population (i.e. closing the employment gap). It was commissioned by the Department of the Prime Minister and Cabinet to help inform the work of the Indigenous Jobs and Training Review chaired by Andrew Forrest.

Matthew Gray is Director, Boyd Hunter is a Senior Fellow and Nicholas Biddle is a Fellow, at the Centre for Aboriginal Economic Policy Research, The Australian National University.

Contact:

Denise Steele
Centre Manager
Centre for Aboriginal Economic Policy Research
denise.steele@anu.edu.au
T: + 61 2 6125 2053