Closing the Gap targets: key findings and implications

Target

The target associated with Outcome 7 of the 2020 National Agreement is to increase the proportion of Aboriginal and Torres Strait Islander youth (aged 15–24) who are in employment, education or training to 67% by 2031 from a 2016 baseline of 57%.

Background

Participation in employment, education and training is vital to improving health, social and economic outcomes for Aboriginal and Torres Strait Islander (First Nations) people.

Transition to adulthood is a crucial time for young people’s development and wellbeing, offering the prospect of social and economic independence. However, young First Nations people may face extra challenges when doing so including intergenerational trauma; racism and discrimination; experience of being in out-of-home care; caring responsibilities; and, for those living in more remote areas, poorer access to educational and employment opportunities.

There have been improvements in a range of indicators relating to the education of young First Nations people, including participation in early childhood education, attainment of year 12 or an equivalent qualification, and completion of a tertiary qualification at Certificate III level or higher. The proportion of First Nations people aged 25–64 who were employed has also showed good improvement and is on track to meet the target by 2031.

Current status

Nationally, the proportion of First Nations youth fully engaged in employment, education or training (EET) has increased steadily, from 48% in 2001 to 58% in 2021. However, the rate in 2021 was below the required trajectory for 2021 to meet the 2031 target.

The largest increases between 2006 and 2021 were in New South Wales (7 pp), Western Australia (7 pp) and South Australia (5 pp).

In 2021, the proportion of First Nations youth fully engaged in EET was highest in Major cities at 64% – it fell with increasing remoteness to 30% in Very remote areas.

The proportion of First Nations youth fully engaged in EET was the highest (82%) among those living in the least disadvantaged areas, and the lowest (39%) among those living in the most disadvantaged areas.

Rates of full engagement in EET for First Nations females and First Nations males diverge from the age of 19, with rates for men gradually increasing and rates for women generally remaining relatively flat. This gender gap emerges around the time that many First Nations women begin having children.

Key findings

The results of the logistic regression predicting the odds of full engagement in EET suggest that statistically significant factors include:

• for 15–24-year-olds: remoteness, area-based level of relative socioeconomic disadvantage, tenure type, age and parental status
• for 18–24-year-olds: experience of financial stress, in addition to the factors listed for 15–24-year-olds.

The results of random forest analysis indicate that highly important factors among these were:

• for 15–24-year-olds: age and parental status
• for 18–24-year-olds: experience of financial stress and area-based level of socioeconomic disadvantage.

Strategies for improvement

Coordinated strategies within and beyond schools that could support increased school attendance among First Nations youth include:

• increasing recruitment and professional development of First Nations teachers and school leaders
• fostering culturally responsive teaching
• expanding options for young people to stay engaged with school education through vocational education and training programs.

To close the gender gap, First Nations female students who are caring for children need improved access to affordable, culturally competent child care. Many women may prefer to work or study part time while they care for their children. Others may prefer to be fully engaged in EET but are unable to access high-quality, culturally competent child care due to a lack of availability, unaffordability, or other barriers. Students with children may experience financial pressures and difficulties in accessing child care and student accommodation.

Some initiatives and programs that support successful transitions to university for First Nations youth include mentoring, university-school-community engagement, outreach programs, ‘Elders in residence’ programs, preparation and pre-orientation courses to help students with the transition, and university-wide cultural competency programs. Regional study hubs may provide more options for First Nations students to access university study while retaining their connection to their community.

Culturally relevant driver licensing programs may promote access to employment and foster social inclusion more broadly among young unemployed First Nations people.

Other strategies identified with potential to increase employment rates among First Nations people more generally include:

• increasing skill and education levels
• providing pre-employment assessment and training
• changing recruitment strategies to increase job opportunities for First Nations people
• providing cross-cultural training in workplaces aimed at reducing racism and discrimination against First Nations Australians
• offering flexible work arrangements to enable First Nations employees to meet family, community or cultural obligations
• providing intensive support to overcome multiple barriers, such as health issues, drug and alcohol issues, or family violence
• implementing wage subsidy programs
• setting First Nations employment goals in government programs that deliver goods or environmental or personal services.