3. The regional labour market

Abstract

Economic outcomes for Aboriginal people in the Thamarrurr region are far below optimal. There is very limited Aboriginal engagement with mainstream work, with the bulk of the adult population dependent on welfare payments for their income.

The author looks at the regional labour force status, dependency ratios, industry and occupation, CDEP activities and estimates of future job needs against select employment targets.

As with most Aboriginal settlements in north Australia, Port Keats (now Wadeye), was not established with an economic base, nor has it subsequently acquired one, at least not in a manner that is currently sustainable beyond the provisions of the welfare state and associated social services. While the regional labour market has grown in both size and complexity in recent decades―as the mission influence has receded and government and market forces have encroached―it can be argued that Aboriginal labour force participation has declined. In effect, the past 30 years in this region have witnessed a shift in Aboriginal employment from some historical association with the private sector, as represented by the pastoral industry, to an almost total reliance on the government sector in the form of CDEP. Beyond the latter, there is very limited Aboriginal engagement with mainstream work, with the bulk of the adult population dependent on welfare payments for their income. This is quite distinct from the non-Aboriginal population of Wadeye that is resident in the region solely for the purposes of employment—a structural gap that has significant consequences for relative economic status as well as for consideration of future outcomes in regard to Aboriginal economic participation.

There are three reasons for this. First of all, regardless of whatever targets might be set by the partners to the Thamarrurr agreement in respect of local employment, the major regional impacts on Aboriginal people in terms of raising overall labour force and economic status are likely to depend more on administrative and funding decisions regarding CDEP than anything else. CDEP is by far the main employer and is likely to continue as such given the lack of formal skills among most of the adult population. Future growth of the scheme is dependent on ever-expanding resources from government, while the welfare basis for such funding leaves little scope for advancing employment beyond part-time hours with corresponding low-income return.

Second, CDEP will inevitably form part of any comprehensive planning for regional economic development focused around future activities in Wadeye and surrounding areas. This is because much of the locally based potential workforce for non-CDEP activities would in all likelihood be currently engaged by the scheme and building the necessary skills and experience for alternate work via such employment.

Finally, the extent of reliance on CDEP for generating employment opportunities in the region places a premium on seeking other opportunities for creating and sustaining employment. The essential background to this need is the projected high growth in the Aboriginal working age population and the certainty that CDEP expansion will be insufficient to cater for labour supply.

Regional labour force status

Rates of labour force status drawn from the 2001 Census are shown for Aboriginal and non-Aboriginal residents of the Thamarrurr region in Table 3.1 and these are applied to the 2003 usual resident population count of adults to derive implied labour force status characteristics for 2003 as shown in Table 3.2. Three standard indicators of labour force status are presented, although these are modified here as simple proportions of the population aged 15 years and over:

  • employment/population ratio, representing the percentage of persons aged 15 years and over who indicated in the census that they were in employment (either in CDEP or mainstream work) during the week prior to enumeration;

  • unemployment rate, expressed as those who indicated that they were not in employment but had actively looked for work during the four weeks prior to enumeration, as a percentage of those aged 15 years and over;

  • labour force participation rate, representing persons in the labour force (employed and unemployed) as a percentage of those of working age—shown here in its converse form as a rate of those not in the labour force (NILF).

Table 3.1. Labour force status for residents of the Thamarrurr region: 2001 rates

Employment/ population ratio

Unemployment rate

Not in the labour force (NILF) rate

Total 15+

CDEP

Other

Aboriginal

8.0

5.8

2.0

84.2

100.0

Non-Aboriginal

0.0

95.0

0.0

5.0

100.0

Source: ABS 2001 Census of Population and Housing

Table 3.2. Implied 2003 levels of labour force status for residents of the Thamarrurr region

Employed CDEP

Employed Other

Unemployed

NILF

Total 15+

Aboriginal

88

64

22

930

1104a

Non-Aboriginal

0

63

0

3

66

  1. From Table 2.3

Source: Author's own calculations

There are several difficulties involved in using these census labour force data. First, as they are based on the usual residence count, they exclude any persons missed by the census. Second, they appear to conflict substantially with indications of labour force status from administrative sources. For example, the census indicates that there were 63 individuals employed in CDEP in 2001, whereas ATSIC records show a total of 125 CDEP participants at the time of the census. More striking is the difference between the census count of 16 unemployed persons, compared to the fact that Centrelink recorded 325 Newstart and 129 Youth Allowance customers at the same time, although these were exempt from the work test and so may have been regarded as not in the labour force for census purposes.[1]

Because of these discrepancies, a basic count of regional employment was conducted in Wadeye in November 2003. This revealed a total of 178 Aboriginal people in the Thamarrurr region with jobs—133 funded by CDEP, and 45 funded from other sources. Using these figures, together with Centrelink data on Newstart and Youth Allowance payments for April 2003, a revised set of labour force status levels and associated rates are provided for 2003 in Table 3.3.

Table 3.3. Actual levels and rates of labour force status for Aboriginal residents of the Thamarrurr region, 2003

Employed

Unemployed

NILF

Total 15+

CDEP

Other

Levels

133

45

449

477

1104a

Rates

12.0

4.1

40.7

43.2

100.0

  1. From Table 2.2

Sources: Thamarrurr community census, Thamarrurr employment survey, and Centrelink, Darwin

This suggests an Aboriginal labour force of around 630 which is much greater than that indicated by the census. Of course, much here depends on semantics—are those exempt from the activity test outside of the labour force? Are CDEP participants necessarily in employment according to census definitions? Should a distinction be drawn between CDEP and other jobs given that many CDEP jobs effectively substitute for ‘real’ jobs in many areas such as education, health, and council services? Indeed, given the administratively determined nature of much Aboriginal economic activity in the region, the boundaries between officially recorded employment, unemployment, and consequent labour force participation, are sufficiently blurred to approach all these data with some caution. They are best seen as rough estimates rather than as robust indicators.

To arrive at a meaningful measure of labour force status, such issues require careful scrutiny on the ground and this provides a useful vehicle for engaging ICCP partners in a dialogue with local working groups concerning the real nature of work, its source funding, and its appropriate measurement. One aspect of this exercise would extend the analysis to consider aspects of economic activity that the census and administrative data sources tend to overlook, namely those customary activities associated with land management, ceremony, and the manufacture of arts and crafts. Just as an example, the 2001 Census recorded only 110 Indigenous visual artists in the whole of the Northern Territory, despite evidence from other sources that those participating (admittedly to varying degrees) in the industry through community art centres number in the thousands (Altman 1989; 1999: 83–5; Wright 1999: 25). In Wadeye, the census counted no such occupations, even though the Dirrmu Ngakumarl Gallery in Wadeye and the Wadeye Art and Craft Gallery in Darwin currently support the activities of 10 local artists and have dealt with as many as 126 since 1997. To underscore the local economic importance of activities that are likely to be overlooked by the census, it has been claimed that, by Australian standards, Aboriginal people on some Aboriginal lands are fully employed in the informal sector (Altman & Allen 1992: 142; Altman & Taylor 1989).

Given their labour-intensive nature and widespread occurrence, it is important to consider ways of strengthening these elements of customary economic activity as part of the broad strategy of raising employment levels. A good local example of this is provided by the Thamarrurr Rangers supported by the Northern Land Council’s Caring for Country program and by CDEP. This employs 15 local people in land and sea management activities such as mimosa and feral animal eradication, marine species survey, sacred site protection, and in ensuring continuity in local environmental knowledge (Thamarrurr Rangers 2003). Against the background of population projections, the scale of the challenge ahead clearly requires some broadening of the definition and composition of officially sanctioned work to encompass potentially labour-intensive activities associated with land management and cultural heritage, as well as the arts industry. With regard to the latter, it is significant to note that as many as 126 local artists, weavers and carvers have sold products via the Dirrmu Ngakumarl Gallery in Wadeye and the Wadeye Art and Craft Gallery in Darwin since 1997, pointing to substantial potential for economic participation. Presently, however, only 10 individuals are associated regularly with this enterprise—four women and six men—suggesting a need to review options for revitalising the arts industry in the region.

Of particular interest for development planning is the distribution of employment and related labour force status rates by age. As this information was not gathered in the basic 2003 employment survey, these data are drawn from the 2001 Census as well as from CDEP participant records for August 2001. In combining census and CDEP administrative data in this way, the assumption is that CDEP employment figures drawn from administrative data directly affect the numbers shown by the census as not in the labour force. Using these combined data, Figure 3.1 shows the labour force status of broad age groups and reveals that labour force participation (the mirror of those shown here as NILF) peaks in the 35–45 year age group, but even here it is still only 40 per cent. At younger ages, and especially among those in the transition years between school and work, participation in the workforce is very low with barely two per cent of 15–24 year olds engaged in non-CDEP work, and only 15 per cent in CDEP. The vast majority (80%) of these young adults are not in the labour force and are therefore dependent for their income on welfare payments (assuming that these are accessed). The other feature is that participation in non-CDEP work peaks in the older working age group of 45–54 years.

Figure 3.1. Labour force status of each age group: Aboriginal residents of the Thamarrurr region, 2001

Labour force status of each age group: Aboriginal residents of the Thamarrurr region, 2001

If the distribution of different labour force states across age groups is examined as in Figure 3.2, it is apparent that this lack of participation among young adults occurs despite the fact that, overall, CDEP participants tend to be young people with 39 per cent of participants in the 15–24 age group, and with the share of CDEP workers declining with age. The opposite is true, though, in regard to non-CDEP employment with 40 per cent of non-CDEP workers in the 35–44 age range and 25 per cent in the 45–54 age range. Almost half (43 %) of all those who are NILF are in the 15–24 age group.

Figure 3.2. Distribution of labour force status by age group: Aboriginal residents of the Thamarrurr region, 2001

Distribution of labour force status by age group: Aboriginal residents of the Thamarrurr region, 2001

Whether there is any transition from CDEP participation at younger ages to mainstream work later on with the former acting as a preparatory skilling phase is not discernable from these data. This is something that could usefully be explored by the Thamarrurr ICCP working groups. As expected, though, labour force participation is positively correlated with age up to 44 years, but recedes rapidly thereafter indicating a distinctly shortened working-life span. One prospect is that this reflects increased morbidity with advancing age, a proposition that will be tested with hospital separations data.