Media Releases
Indigenous Australians Denied Employment by Inept Polices
Indigenous unemployment is stuck at 15% while unemployment in the rest of Australia is back to 5.3%.
Yet in their paper Indigenous Employment, Unemployment and Labour Force Participation: Facts for Evidence Based Policies Professor Helen Hughes, Senior Research Fellow and Mark Hughes highlight that 80% of Indigenous Australians live in capital cities and regional towns, close to jobs.
The problem is not a lack of jobs, but government policies that have made many Aborigines unemployable.
‘Governments spin does not mention that Indigenous non participation in the labour force – those not even looking for work – is three times larger than unemployment’ says Professor Hughes.
Newstart allowances at least imply that people are looking for work. Those not in the labour force receive other welfare benefits without any obligation to seek jobs.
Jobs are plentiful in remote locations, where employers are desperate for qualified and skilled workers. These jobs are filled by non-Indigenous workers because Indigenous people in remote areas lack literacy and numeracy, let alone trade or professional skills.
In remote areas, the lack of education is the primary constraint for Indigenous employees, while in capital cities and regional towns it is welfare dependence that creates high unemployment.
‘Education and welfare policies have made many Indigenous Australians unemployable.’
Transition from welfare to work will never be achieved unless the repackaging of welfare which has allowed Aborigines to avoid mutual obligation rules ends. Additional welfare benefits for Indigenous people act as a disincentive for people to look for work because welfare payments often end up higher than entry level wages. Remote schools must also start applying mainstream education standards so remote Aborigines have the skills to work.
‘Improvements in living standards won’t occur until Indigenous people get jobs.’
The news is not all bad - over 300,000 Indigenous people are in the labour force; owning, buying or commercially renting their houses and living like most other Australians. There is no ‘gap’ between these Indigenous people and other Australians
Professor Hughes is a Senior Research Fellow at the Centre for Independent Studies and Mark Hughes is an independent researcher. They are available for comment. The report is available at: http://www.cis.org.au/policy_monographs/pm107.pdf
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