Employment of First Nations people

Employment lies at the heart of socioeconomic opportunity. It provides direct economic benefit to individuals and families, including financial security, increased social mobility and access to higher standards of living. Beyond this, it is well established that working is associated with benefits to physical and mental health, social inclusion and improved developmental outcomes for the children of employed persons (Biddle 2013; Gray et al. 2014; WHO 2016).

This page provides an overview of employment for Aboriginal and Torres Strait Islander (First Nations) people over time.

For more information on the household and personal income of First Nations people (including wages and salaries from employment), see Income and finance of First Nations people.

Overview of First Nations people’s employment status

On this page, data are shown for people aged 15–64 for consistency with previous reporting and for comparability over the reporting period (2011–13 to 2022–23).

In 2022–23, of the estimated 607,500 First Nations people aged 15–64 and in scope for the National Aboriginal and Torres Strait Islander Health Survey:

• an estimated 404,000 (67%) were in the labour force, of which
  • 346,600 (57%) were employed
  • 57,700 (9.5%) were unemployed
• the remaining 203,000 (34%) were not in the labour force.

Employment

In 2022–23:

• a similar proportion of First Nations males and females aged 15–64 were employed (57%, or 170,000 males and 177,000 females)
• 36% (215,000) of First Nations people were employed full time, and 21% (125,000) were employed part time
• females were almost twice as likely as males to be employed part time (27% compared with 14%)
• the proportion of First Nations people who were employed varied markedly by state and territory, being highest in New South Wales and the Australian Capital Territory combined (63%) and lowest in the Northern Territory (38%). This pattern has remained roughly the same for the past 20 years.

Main occupations and industries of employment

This section provides 2 types of information about employed First Nations people:

• their occupation (in high-level groupings); the type of job they do
• their industry of employment; the main type of activity their employer undertakes.

For example, a person who works as an accounts clerk for a major clothing store would have ‘clerical and administrative workers‘ as their occupation group and ‘retail trade’ as their industry of employment. Examples of occupations and industries within the 5 most common groups reported by First Nations employees are provided below.

Main occupation groups

The 5 most common occupation groups of working age First Nations people in 2022–23 were:

• community and personal service workers, for example aged care workers, child care workers, Aboriginal and Torres Strait Islander health workers, sports coaches and hospitality workers (61,200 people or 18% of those who were employed)
• professionals, for example teachers, people working in media and the arts, park rangers, allied health professionals and midwives (57,800 people; 17%)
• labourers, for example cleaners, kitchenhands, factory workers and builders’ labourers (49,300 people; 14%)
• clerical and administrative workers, for example receptionists, bookkeepers, personal assistants and call centre workers (47,900 people; 14%)
• technicians and trades workers, for example gardeners, mechanics, bricklayers, electricians and carpenters (47,800 people; 14%) (Figure 1; ABS 2024).

Overall, 3 in 4 (76%) First Nations employees worked in these 5 occupation groups.

Main industries of employment

The 5 most common industries of employment for working age First Nations people in 2022–23 were:

• health care and social assistance, for example in hospitals, medical services and residential care facilities (54,100 people or 16% of those who were employed)
• public administration and safety, for example in governments, defence and emergency services (34,700 people; 10%)
• retail trade, for example in supermarkets, department stores and service stations (34,600 people; 10%)
• construction, for example by builders and related trades, earthmovers and in road construction (31,300 people; 9.0%)
• education and training, for example in public and private schools, preschools, universities, and arts and music classes (29,300 people; 8.5%) (Figure 1; ABS 2024).

Half (53%) of all First Nations employees were engaged in these 5 industries.

Figure 1: Most common occupations and industries of employment, First Nations people aged 15–64, 2022–23

Unemployment

In 2022–23, 9.5% (57,700) of First Nations people aged 15–64 were unemployed. This has decreased from 11% (56,000) in 2018–19. Unemployment varies between males and females, with males being around twice as likely as females to be unemployed (13% and 6.3%, respectively, or 37,900 males and 19,800 females).

Queensland had the highest proportion of First Nations people unemployed in 2022–23, at 14%. New South Wales and the Australian Capital Territory combined had the lowest proportion of First Nations people unemployed, at 5.9%.

Not in the labour force

In 2022–23, 34% (203,000) of First Nations people of working age (15–64) were not in the labour force. This means they were neither employed nor actively looking for work during the data collection period. The proportion of First Nations people not in the labour force ranged from 29% in Queensland to 50% in the Northern Territory. A lower proportion of males than females were not in the labour force (30% compared with 37%, or 88,100 males and 115,000 females).

There are many reasons why a First Nations person may not be in the labour force, including:

• lack of available and appropriate employment options
• cost associated with job searching
• need for further education or training for employment
• health concerns
• disability
• family responsibilities, including caregiving duties
• community responsibilities (Dinku and Hunt 2019; Hunter and Gray 2001; Kalb et al. 2014; Savvas et al. 2011).

Employment for First Nations people varies by remoteness

In 2022–23, the proportion of First Nations people who were employed decreased consistently with increasing remoteness, from 68% in Major cities to 38% in Very remote areas (Figure 2). This pattern has remained consistent since 2012–13.

The proportion of First Nations people who are unemployed and the proportion not in the labour force both tend to increase with remoteness.

How has First Nations employment status changed over time?

The proportion of First Nations people aged 15–64 who are employed has increased over the past decade, from 46% in 2012–13 to 57% in 2022–23. The growth in employment for females was greater than that for males, with the proportion of First Nations females who were employed rising from 41% to 57% over that period, compared with an increase from 50% to 57% for males. For both sexes, most of the change was due to a decrease in the proportion not in the labour force, with the proportion who were unemployed changing by only a relatively small amount (Figure 3).

Employment by education level and sex

The employment rate for First Nations people has consistently shown an increase with higher levels of education. In 2022–23, the observed employment rate pattern relative to the highest level of education completed was:

• 94% for those with a Bachelor degree or higher
• 78% for those with an advanced diploma or diploma
• 68% for those with secondary year 12, or Certificates III/IV
• 37% for those with secondary year 10 or 11, or Certificates I/II
• 25% for those with secondary year 9 and below (Figure 4).

Across almost all educational attainment levels, part-time employment rates for First Nations people were higher among females than males, and full-time employment rates were higher among males than females (Figure 4).

The higher employment rate in males than females was consistent across all levels of educational attainment except for Bachelor degree or higher, where the rates were similar (92% for males and 94% for females).

Comparisons with non-Indigenous Australians

Overall employment rates

In 2022–23, First Nations people aged 15–64 were less likely than non-Indigenous people of this age to be employed (57% compared with 79%), and more likely to be unemployed (9.5% compared with 3.0%). First Nations people were also almost twice as likely as non-Indigenous Australians to not be in the labour force (34% compared with 18%).

Occupations and industries of employment

In 2022–23, First Nations people were more likely to work in labouring and community and personal service occupations, and less likely to work as professionals and managers, relative to the working age non-Indigenous population. First Nations people were more likely than non-Indigenous people to be employed in the public administration and safety sector, and less likely to be employed in the professional, scientific and technical services sector (AIHW analysis of ABS 2024).

Employment and education

The gap in employment rates between First Nations people and non-Indigenous Australians narrows with higher levels of education. In 2022–23, there was an overall gap in employment rate of 21 percentage points between First Nations people and non-Indigenous Australians (57% compared with 79%). However, separating this by level of education, the gaps were:

• 23.0 percentage points (37.1% compared with 60.1%) for those with Year 10 or 11 or Certificate level I or II
• 12.7 percentage points (68.2% compared with 80.9%) for those with Year 12 or Certificate III or IV
• 4.6 percentage points (78.3% compared with 82.9%) for those with a diploma or advanced diploma
• –5.6 percentage points (93.5% compared with 87.9%) for those with a Bachelors degree or higher.

This pattern of a decreasing gap in employment status with increasing level of education has been observed over several years, is seen for both males and females and is reasonably consistent across age groups.

For more information on this topic see Education of First Nations people.

Closing the Gap targets

In 2020, all Australian governments and the Coalition of Aboriginal and Torres Strait Islander Peak Organisations worked in partnership to develop the National Agreement on Closing the Gap (the National Agreement), built around 4 Priority Reforms. The National Agreement also identifies 19 targets across 17 socioeconomic outcome areas. Two of these targets directly relate to employment.

Prior to establishment of the National Agreement, there were 7 Closing the Gap targets set by the Council of Australian Governments (COAG) under the National Indigenous Reform Agreement, one of which was to halve the gap in employment rates between First Nations and non-Indigenous Australians between 2008 and 2018. The Closing the Gap Report 2020 found that this target expired unmet.

Where do I go for more information?

For more information on employment among First Nations people, see:

• NIAA Closing the Gap Report 2020
• Productivity Commission Performance Reporting Dashboard on the National Indigenous Reform Agreement
• ABS National Aboriginal and Torres Strait Islander Health Survey, 2022-23
• National Agreement on Closing the Gap
• Productivity Commission Overcoming Indigenous disadvantage: key indicators 2020.
• Australian Human Rights Commission, Wiyi Yani U Thangani Report and Royal Commission into Violence, Abuse, Neglect and Exploitation of people with Disability, 2020