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.

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).