A longitudinal analysis of economic inactivity among Indigenous youth

Census and survey data show a high prevalence of youth inactivity among Indigenous Australians. The new Closing the Gap Agreement between the Coalition of Aboriginal and Torres Strait Islander Peak Organisations and the Australian governments at the federal, state and territory level aims to increase the proportion of Indigenous youth (aged 15-24 years) in full-time employment, education or training to 67 per cent by 2031. Understanding the factors that put young people at risk of disengagement from school or the labour market is a requisite for identifying the type and level of support required to increase the engagement of Indigenous Australians with the labour market and education system. However, there is a limited empirical evidence base to guide policy actions. Using data from the Australian Census of Longitudinal Dataset, this study provides extensive profiling of the characteristics of Indigenous youth not in employment, education or training. It also identifies the factors underlying individual-level changes in economic inactivity. The findings suggest that providing well-targeted supports to those who live in disadvantaged circumstances is paramount for mitigating economic inactivity among Indigenous youth.