Work and Indigenous Wellbeing: Developing a Research Agenda

Kirrily JordanCentre for Aboriginal Economic Policy Research

Unemployment rate by Indigenous status, 1971 - 2006

Note: Time series comparisons are problematic and should be taken as indicative onlySource: ABS Census of Population and Housing 1971, 1981, 1991, 1996, 2001 and 2006.

0

5

10

15

20

25

30

35

1971 1981 1991 1996 2001 2006

% o

f la

bo

ur

forc

e

Indigenous

Non-Indigenous

Labour force status of Indigenous Australians aged 15-64 years, 2006

Employed Unemployed Total labour force

Not in labour force

Labour forceparticipation

rate%

2006 122,000 23,000 144,000 109,000 57

Note: Based on usual place of residence.Source: Census data, SCRGSP 2009.

Paid work as both a right and a responsibility

• Paid work as central to wellbeing:“There is nothing more important in managing the Australian

economy than to ensure that every Australian has the opportunity to work. A job provides more than just a pay packet—it gives dignity and purpose, provides security for the future and connects people to their community” (ALP 2010).

• And for those who can work, it’s not just a right but also an obligation:

“Federal Labor believes all Australians on income support should have the opportunity of work—but with greater opportunity comes greater responsibility” (ALP 2010)

Is there theory/evidence behind this approach?

• It fits very comfortably with Pearson’s approach:• points to the corrosiveness of welfare dependency• identifies the solution as increased participation in the ‘real

economy’

• Supported by empirical studies of unemployment• poorer mental and physical health• higher rates of crime and substance abuse• particular problems for the long term unemployed

• And by studies of employment• increased income, economic independence• improved self-esteem and self-confidence• skills development• expanded social networks

But does this always hold true?

• Some types of work may undermine wellbeing• ‘inadequate’ work (intermittent, poorly paid or insecure) • excessive work• unsatisfying work

• ‘Australian Work and Life Index’ July 2010• long work hours increase risks to mental and physical health

• Lifeline Newspoll Survey July 2010• 72% of Australian workers feel stressed and blame their jobs

• Wellbeing and happiness studies• most people rate intrinsic factors, like the quality of social

relationships, as more important to their wellbeing

The cultural value of paid work

• The value we attach to work is a cultural / social construct • eg. the ill-effects of unemployment are more pronounced among

people with a greater psychological investment in paid work • work as paid employment is a relatively new idea• Weber and the Protestant ethic

• Indigenous cultures and the value of paid work• Nugget Coombs: Market employment may involve a trade-off

between earning cash and other forms of ‘work’• Maintaining cultural and family obligations might be the ‘real’ work

that confers social status and self esteem• These arguments are supported by more recent research• But information about Indigenous attitudes and aspirations to paid

work is still inadequate, particularly for urban areas

North East Arnhem Land

• A fairly unique colonial history • colonial incursions came relatively late (mid to late 1800s) • Methodist missionaries did not seek to eradicate Yolngu culture

or force people off the land• the result is a strong and proud Yolngu culture and some

resistance to the notion they have ever ceded sovereignty

• Homelands movement of the 1970s• many Yolngu opposed the bauxite mine and perceived threats to

their social fabric• they actively sought to reclaim their lands by re-establishing

settlements on clan estates • these homelands remain fundamental to Yolngu identities and

cultures today

‘Work’ in North East Arnhem Land

• Many Yolngu embraced CDEP • the scheme was devised to prevent welfare dependence while

facilitating local employment and community development• block grants to local Aboriginal organisations created part-time

jobs, with the possibility of additional ‘top up’ payments• at its peak, CDEP employed more than 35,000 people

• But CDEP has been very contentious• CDEP as a disincentive to mainstream work, or a form of ‘pseudo

welfare’• there is evidence that some CDEP projects have paid participants

regardless of their work effort• CDEP has been used as cost-shifting

• In North East Arnhem Land ‘no work no pay’

Current changes in employment policy • The ALP has committed to radical reform of CDEP

• by July 2011 all participants will be transitioned off CDEP wages onto the new ‘CDEP income support’.

• new participants must first sign up for Newstart Allowance, then be referred to a Job Services Australia provider, then be referred to a CDEP program.

• the new CDEP is ostensibly a pre-employment program to transition participants into mainstream work

• Simultaneous reform of employment services• Job Services Australia

• The vision is to restore ‘positive social norms’ around work • ‘the old ways of doing things have comprehensively failed

generations of Indigenous Australians’ (Commonwealth of Australia 2010)

What do the policy changes mean in practice? • Without CDEP there are few alternative jobs

• Working on Country is a promising development, but still a small employer

• most Yolngu either don’t want to work in the mine, or have limited capacity to do so

• some micro-enterprises are developing but significant sustainable employment is a long way off

• in practice, most people are still referred to CDEP (but now on Newstart)

• moving away for work is no guarantee of improved outcomes

• Is a ‘job services’ approach appropriate?• it may not fit with the reality of the labour market, or with peoples’

current capacities and values

Conclusions: Work and Indigenous wellbeing • Unemployment (and CDEP) can be barriers to wellbeing

• eg. lack of financial freedom

• Many Indigenous people do want paid work

• But we should be cautious about narrow definitions• eg. when it’s very narrowly defined, ‘work’ can undermine other

productive activity• differences in cultural values may mean the trade-offs are greater

for some Indigenous people

• Future research: We need to know • what are the costs?• what are the alternatives?• what do Indigenous people want?