In: Economics
approximately 400 words:
Describe the influence of historical colonisation practices, policies and legislation relating to Indigenous Australian peoples, particularly in relation to employment and economic independence. This section requires at least 2 historical stages or policies (how do these examples show the impact on employment and economic independence?)
HISTORICAL COLONISATION RELATED TO AUSTRALIA :-
European colonisation created a new dominant society in Australia in place of the pre-existing population of Aboriginal Australians.
ECONOMIC INDEPENDANCE IN AUSTRALIA :-
… the new spirit of freedom that is hopefully growing in the Aboriginal community at large – freedom from dependence on government handouts; freedom from a century of oppression; freedom from the cycle of poverty. We are proud of what we have accomplished.
INDIGENOUS EMPLOYEEMENT :-
"Engaging the unique skills and knowledge of Indigenous people can have a positive impact in all organisations. It plays a key role in assisting organisations to develop mutually beneficial Indigenous employment strategies. Indigenous employees bring different perspectives, experiences and knowledge, which can create long-term value for organisations and individuals. These positive economic and social outcomes provide a workplace of choice for Indigenous people and the wider community."
EXAMPLE :-
The mining industry currently employs 6,599 Indigenous Australians in 2016 (or 3.9 per cent of Indigenous employees), two-and-a-half times the number employed in 2006 (when it comprised 2.2 per cent of Indigenous employment). For comparison, non‑Indigenous mining employment grew by one-and-a-half times over the past decade.
The decline in Indigenous employment rates in mining states also partly reflects the transition from CDEP to CDP: the majority of the CDEP participants in 2006 were in Western Australia, the Northern Territory and Queensland.
For example, Census data shows that the Northern Territory’s Indigenous employment rate fell by 7.7 percentage points to 31.2 per cent in the ten years to 2016. However, excluding CDEP participants from the 2006 employment data indicates that the employment rate actually improved by at least 9.9 percentage points over the same period. This result is not surprising, especially as 21 per cent of the Northern Territory Indigenous working age population were CDEP participants in August 2006.
INDIGENOUS RATE AND UNEMPLOYEMENT RATE :-
Modelling the impact of increased employment participation :-
The discussion in this chapter focuses on the methodology and findings of the general equilibrium modelling used to estimate the impact on output if a higher proportion of people with a disability entered the workforce. The modelling does not address the policy measures needed to achieve these outcomes or the costs associated with doing so. Rather, the aim of the modelling is to present the potential economic benefits associated with increasing employment participation for people with disability and provide a reference point for future discussion on the issue.
Employment assumptions
There are separate employment assumptions for each of the two scenarios:
Scenario 1: The first scenario assumes that the unemployment rate for people with disability is unchanged at 7.8%. This implies that, of the additional 207,000 people entering the labour force, 191,000 people will secure employment.
Scenario 2: Scenario 2 assumes that the unemployment rate for people with disability is lowered from 7.8% to 6.9%. The reduction in the unemployment rate implies that, of the 1.4 million people with disability in the labour force under this scenario (including the 207,000 new entrants), an additional 20,000 people would secure employment. Overall, this implies that employment would increase by 203,000 people under this scenario.
Part-time and full-time employment
For both scenarios we conservatively assume that the proportion of new people entering the workforce that will work part-time is 64%, which is the same as the percentage of people with restricted hours that are currently working part-time. This assumption reflects that the people moving into employment are more likely to have a disability that restricts the number of hours that they are able to work than people who are already employed.
In figure, Scenario 1 assumes an increase in employment of 191,000 people over and above the baseline over a 10 year period, and an increase in FTE employment of 129,000 people. This represents a 1.0% increase in FTE employment relative to the baseline over the next 10 years.
ANNUAL IMPACT OF SCENARIO 1 AND SCENARIO 2 AND EMPLOYMENT :-
SOLUTION FOR EMPLOYEMENT AND ECONOMIC INDEPENDANCE :-
Improving employment opportunities for people with disability is a critical element for enhancing the quality of life for individuals with disability, their families and carers, but there are also substantial gains for the broader economy. The modelling in this report shows that if the gap between the participation rate and unemployment rate for people with and without disability could be reduced by just onethird, phased in over the next decade, the cumulative impact on GDP over the next decade would be $43 billion. The modelling also suggests that GDP will be around 0.85% higher over the longer term, which is equivalent to an increase in GDP in 2011 of $12 billion. This is only the direct impact on GDP, and does not include the indirect impact of improved government fiscal balances. Nor does it include the broader welfare gains for the individuals that secure employment, and their families and carers. Foreshadowing the likely policies and programs required to achieve these outcomes was outside the scope of this report. However, the modelling results demonstrate that the economic payoffs are large, and there are clear benefits in government taking steps to alleviate the labour force disadvantages faced by people with disability. The Australian Government has announced some changes to the disability support pension that should help to increase labour force participation for people with disability, including an increase in the number of hours that can be worked while receiving the DSP and some subsidies for some employers who hire people with disability.