Education & employment

About this topic

Mental health is affected by a complex combination of health risk factors, access to and use of health services, environmental factors, and an individual’s own health capabilities. Systemic differences in these factors are associated with socioeconomic position—both for individuals and groups—including differences in education, employment and income (AIHW 2020). Access to appropriate education and employment is fundamental to strengthening the wellbeing of individuals, families and communities (Dudgeon et al. 2017) and to good mental health (Shepherd et al. 2012).

Connection to mind, emotions and community

Connection to mind and emotions, and connection to community, are 2 of the 7 domains of social and emotional wellbeing for Aboriginal and Torres Strait Islander (First Nations) people.

Social and emotional wellbeing is a holistic way of looking at relationships between individuals, family, kin and community in the context of land, culture, spirituality and ancestry. Cultural groups and individuals each have their own interpretation of social and emotional wellbeing (Gee et al. 2014).

Education and employment opportunities can enhance a person’s connection to mind and emotions, as well as their connection to community (PM&C 2017).

Education

Education can provide a foundation that enables knowledge of health behaviours and determinants, stable employment, financial security, and social connections (ABS 2011; Biddle & Cameron 2012; Hart et al. 2017). First Nations people who complete Year 12 or higher are more likely to be employed (Shirodkar et al. 2018; Venn 2018), which is consistent with the general Australian population (ABS 2019a).

Mainstream formal education can be challenging for First Nations families. First Nations families can feel alienated by culturally inappropriate practices. For example, the mainstream education system may not recognise child autonomy in the same way as First Nations caregivers, nor recognise the cultural competence that First Nations children bring to school (Walker et al. 2014). Experiences of discrimination, racism and harassment at school can lead to marginalisation and social exclusion (Dudgeon et al. 2014). Absenteeism may be used as a protective mechanism against feelings of shame or anxiety. Infrequent school attendance can impact on learning, as well as the delivery of prevention programs aiming to support children through behavioural and emotional problems (Walker et al. 2014). Creating opportunities for participation, social connection and a sense of belonging can encourage school attendance and address behavioural and emotional problems (Walker et al. 2014).

Education outcomes for First Nations people are affected by access and participation in education, family and community engagement, home learning environments, the availability of mentors and culturally inclusive support strategies (Productivity Commission 2016).

Employment

Jobs provide opportunities for financial security, self-determination, stable housing and improved social and emotional wellbeing (PM&C 2019). Employment satisfaction and stress can have substantial impact on a person’s wellbeing (Wilkins & Lass 2018). Stressors such as job insecurity and job loss have been linked to psychological distress (ABS 2011). These factors may also be linked to other stressors such as serious illness, disability, inadequate housing, inaccessibility of reliable utilities, overcrowding, exposure to violence including family and domestic violence, substance misuse, incarceration, and interpersonal and institutional racism (AIHW & NIAA 2020).

Institutional racism and historical exclusion of First Nations people can reduce participation in education, training and the national economy. These factors are associated with a range of adverse health conditions, such as stress, mental health problems and attempted suicide (Nguyen & Cairney 2013).

Employment for First Nations people may be increased by:

increasing skill levels
pre-employment assessment and training
intensive assistance for jobseekers
non-standard recruitment strategies
support for retention
wage subsidies
employment goals for First Nations people in government programs
policies that support First Nations people to develop skills required for available jobs (Gray & Hunter 2016; Gray et al. 2012).

Although increasing employment can address economic disadvantage, conventional measures of employment ignore the positive wellbeing aspects of cultural engagement. Reporting frameworks should recognise that different cultures may have different constructs of employment and work (Carson et al. 2007; Dockery 2010).

In 2020, all Australian governments and the Coalition of Aboriginal and Torres Strait Islander Peak Organisations worked in partnership to develop the National Agreement on Closing the Gap- external site opens in new window (the National Agreement), built around 4 Priority Reforms. The National Agreement also identifies 19 targets across 17 socioeconomic outcome areas. Six of these targets directly relate to education and one to employment, monitored annually by the Productivity Commission.

National Agreement on Closing the Gap: education and employment-related targets

Outcome area 3: Aboriginal and Torres Strait Islander children are engaged in high quality, culturally appropriate early childhood education in their early years

Target: By 2025, increase the proportion of Aboriginal and Torres Strait Islander children enrolled in Year Before Full time Schooling (YBFS) early childhood education to 95% (from 76.7% in 2016).
Status: In 2022, the proportion was 99.2%. This is higher than the target trajectory of 88.9%.

Outcome area 4: Aboriginal and Torres Strait Islander children thrive in their early years

Target: By 2031, increase the proportion of Aboriginal and Torres Strait Islander children assessed as developmentally on track in all five domains of the Australian Early Development Census (AEDC) to 55% (from 35.2% in 2018).
Status: In 2021, the proportion was 34.3%. This is lower than the target trajectory of 39.8%.

Outcome area 5: Aboriginal and Torres Strait Islander students achieve their full learning potential

Target: By 2031, increase the proportion of Aboriginal and Torres Strait Islander people (age 20-24) attaining year 12 or equivalent qualification to 96% (from 63.2% in 2016).
Status: In 2021, the proportion was 68.1%. This is lower than the target trajectory of 74.1%.

Outcome area 6: Aboriginal and Torres Strait Islander students reach their full potential through further education pathways

Target: By 2031, increase the proportion of Aboriginal and Torres Strait Islander people aged 25-34 years who have completed a tertiary qualification (Certificate III and above) to 70% (from 42.3% in 2016).
Status: In 2021, the proportion was 47%. This is lower than the target trajectory of 51.5%.

Outcome area 7: Aboriginal and Torres Strait Islander youth are engaged in employment or education

Target: By 2031, increase the proportion of Aboriginal and Torres Strait Islander youth (15-24 years) who are in employment, education or training to 67% (from 57.2% in 2016).
Status: In 2021, the proportion was 58%. This is slightly lower than the target trajectory of 60.5%.

Outcome area 8: Strong economic participation and development of Aboriginal and Torres Strait Islander people and communities

Target: By 2031, increase the proportion of Aboriginal and Torres Strait Islander people aged 25-64 who are employed to 62% (from 51% in 2016).
Status: In 2021, the proportion was 55.7%. This was slightly higher than the target trajectory of 54.7%.

Source: Closing the Gap information repository

Key statistics

Education, employment and health are interconnected. Education is well recognised as a key social determinant of health and continued learning for adults is regarded as a powerful factor in achieving better health, education and economic outcomes (Chandola & Jenkins 2014). Employment is beneficial for individual and community health as it boosts financial security, social status, personal development, social relations, self-esteem and emotional wellbeing (Lowry & Moskos 2007; Marmot et al. 2008).

The Indigenous Mental Health and Suicide Prevention Clearinghouse (the Clearinghouse) has used 3 social and emotional wellbeing measures – psychological distress, level of mastery and perceived social support – from the National Aboriginal and Torres Strait Islander Health Survey (NATSIHS) 2018–19 to identify relationships between factors like educational attainment, employment status, income and financial stress, and education or employment restriction, and mental health conditions and SEWB. For more information about these scales, see the topic page on Social and emotional wellbeing.

Early childhood development

The early childhood years are a time when children begin to learn to communicate and get along with others, as well as adapt their behaviour, emotions, and attention (CDCHU 2011). These developmental skills play an important role when a child transitions to primary school and establish the foundations for academic and life success (Pascoe and Brennan 2017).

The Australians Early Development Census (AEDC 2019a) measures 5 important domains of early childhood development:

physical health and wellbeing
social competence
emotional maturity
language and cognitive skills (school-based).

In 2018, First Nations children were more likely than non-Indigenous children (41% compared with 20%, respectively) to report developmental vulnerability for 1 or more of these domains (AEDC 2019b).

Educational attainment

As the level of educational attainment increases, the employment gap between First Nations people and non-Indigenous Australians declines. A university education will not suit the aspirations of everyone, but pursuing post-school qualifications will increase opportunities for socioeconomic advancement. First Nations Australians with a post-school qualification have improved likelihood of employment (Boyd 1996).

The data presented here are sourced from the NATSIHS 2018–19 and are for persons aged 18 and over. Estimates are calculated using a sample selected from a population rather than all members of that population. See the data tables in the Download data section for notes related to these data.

Psychological distress was generally lower among people with higher educational attainment. The proportion of people who reported Low/Moderate psychological distress was greater among people with a Diploma/Advanced diploma (78%) or a Bachelor degree or higher (76%), compared with around two thirds of people with a Certificate III/IV, Year 12 or Year 11 or below (68%, 67% and 67%, respectively) (Figure 1; Table EE.1).

Among people in non-remote areas, the proportion of First Nations people reporting High mastery and High perceived social support were greatest among people with a Bachelor degree or higher (80% and 66%, respectively), Diploma/Advanced diploma (77% and 64%, respectively) or Year 12 (75% and 67%, respectively). For people with Year 11 or below, the proportion was closer to half (57% and 56%, respectively) (Table EE.1).

Employment status

Workforce participation rates are considerably higher for people with better health, particularly better mental health. Employment and financial security are key drivers of better mental health outcomes with employed First Nations people half as likely to have high or very high levels of mental distress than those who are unemployed (Hunter et al. 2022).

In 2018–19, according NATSIHS data, around half (48%) of First Nations people aged 18 and over were employed. This proportion was lower for people with a current, diagnosed mental health condition (40%), than for people without a mental health condition (52%) (Table EE.2).

The proportion of males in employment was higher than for females (53% and 43%, respectively). However, among First Nations people with a current, diagnosed mental health condition, the proportion of males and females in employment was about the same (42% and 39%, respectively) (Table EE.2).

Among people in full-time employment, 82% (118,200 out of 143,800) reported Low/Moderate psychological distress (Figure 2). For those in non-remote areas, 81% of people employed full-time reported High mastery and 72% reported High perceived social support (Table EE.3).

Among people who were Unemployed, looking for work and people Not in the labour force, 42% and 41% reported High/Very high psychological distress, respectively (Figure 2; Table EE.3). In non-remote areas, around half of people who were Unemployed, looking for work or Not in the labour force reported Low mastery (47% and 48%, respectively) (Table EE.3).

Income and financial stress

Adequate and reliable income allows a person to support themselves, their family and their community (AIHW 2019). Income inequality is associated with poor health and social dysfunction, such as psychological distress, poor education performance, substance misuse, crime and violence (Isaacs et al. 2018; Kessels et al. 2020; Wilkinson & Pickett 2009). Low income can limit choices and opportunities for improving health outcomes and may influence other health-related factors, such as dietary choices and access to health care (AIHW 2015).

Household income and financial stress

In 2018–19, around two thirds (63%) of First Nations people had a household income of less than $723 per week (Quintile 1/2). However, among people with a current, diagnosed mental health condition, the proportion rose to 69%. This compared with 59% for people without a mental health condition (Table EE.4).

Almost half (49% or 86,700 persons) of First Nations people with a current, diagnosed mental health condition reported living in a household that had days without money for basic living expenses. This compared with one third (33% or 101,900 persons) for people without a mental health condition (Table EE.4).

The proportion of people with a current, diagnosed mental health condition who reported that household members could raise $2000 in an emergency was smaller than those without a mental health condition (41% and 47%, respectively) (Table EE.4).

Social and emotional wellbeing and household income and financial stress

In 2018–19, First Nations people with a household income of $1118 or more (Quintile 4/5) had the greatest proportion of Low/Moderate psychological distress (83%). This proportion decreased with less household income, dropping to around half (56%) among people with a household income of less than $456 (Table EE.5).

In non-remote areas, level of mastery and perceived social support followed the same pattern as psychological distress, with the proportion of people reporting High mastery ranging from 87% (Quintile 4/5) to 50% (Quintile 1) and High perceived social support ranging from 69% (Quintile 4/5) to 47% (Quintile 1) (Table EE.5).

Psychological distress was higher for people who lived in households that had days without money for basic living expenses and level of mastery and perceived social support were lower. However, psychological distress was lower, and level of mastery and perceived social support was higher for people who reported that household members could raise $2000 in an emergency (Figure 3; Table EE.5).

Personal income

In 2018–19, almost half (44% or 199,100 persons) of First Nations people reported earning $509 or more per week. People with a current, diagnosed mental health condition were less likely to report earnings in Quintile 4/5 ($975 or more), compared with people without a mental health condition (18% compared with 26%). Nearly 2 in 5 people (39%) with a mental health condition reported earning between $293 to $508 (Quintile 2) (Table EE.6).

Similarly, people earning an equivalised gross income of $975 or more per week were most likely to report Low/Moderate psychological distress (82%), and people earning $293 to $508 were most likely to report High/Very high psychological distress (43%) (Figure 4; Table EE.7).

In non-remote areas, level of mastery followed the same pattern. The greatest proportion of First Nations people reporting High mastery was people earning $975 or more (Quintile 4/5) and smallest among people earning $293 to $508 (Quintile 2) (Table EE.7).

Education or employment restriction due to disability

Lower levels of educational attainment, lower participation in the workforce and lower income are likely to be both the cause and consequence of disability (Biddle 2013). Although disability prevalence varies across data sources, all show a higher disability rate experienced by First Nations people than non-Indigenous Australians. The high levels of disability and earlier onset of core activity restrictions experienced by First Nations people are consistent with the higher levels of disease and injury, and lower access to health services relative to need (AIHW & NIAA 2023).

In 2018–19, 10% (49,200 persons) of First Nations people reported having an Education restriction due to disability and around one quarter (24% or 116,900 persons) reported having an Employment restriction. People with a current, diagnosed mental health condition were more likely to report an Education restriction or Employment restriction (20% and 42%, respectively). This compared with 4.1% and 14%, respectively, for people without a mental health condition (Table EE.8).

The proportion of people reporting High/Very high psychological distress was greatest among people with an Education restriction (69%). This compared with 55% for people with an Employment restriction and 18% for people without a disability. In non-remote areas, level of mastery and perceived social support were similar for people with an Education restriction and people with an Employment restriction (Table EE.9).

Key terms

In the NATSIHS, the term employed is used to describe someone if they are 15 years and over and, in the week prior to interview, either:

had a job or business, or
worked without pay in a family business for a minimum of one hour.

This also includes persons who were absent from a job or business.

See Data sources for more information about the NATSIHS.

Equivalised income: Differences in household types and compositions, and their requirements relative to income, can be taken into account by the application of equivalence scales. These scales are a set of ratios which, when applied to the income of different household or income unit types, produce standardised estimates of income which reflect the households' relative well-being. The modified Organisation for Economic Co-operation and Development (OECD) equivalence scale (1994) was used.

Equivalised income is derived by calculating an equivalence factor and then dividing income by that factor. The equivalence factor is built up by allocating points to each person in the household unit and summing those points. One point is allocated to the first adult in the unit, 0.5 points for each other person aged 15 years and over, and 0.3 points for each person aged less than 15 years. For example:

A single person household has a factor of one, so equivalised income is therefore the same as reported income
a household comprising two adults and a child aged less than 15 years would have a factor of 1.8, so equivalised income for this household is therefore the household income divided by 1.8.

Labour force: The labour force comprises all people who are either employed or unemployed, looking for work.

Level of mastery was determined using the Pearlin Mastery Scale, which is a set of seven statements used to measure how much a person feels in control over life events and outcomes. Higher levels of mastery can lessen the impact of stress on a person’s physical and mental wellbeing. Respondents were asked to respond to each statement by selecting one of four responses presented on a prompt card, ranging from ‘strongly agree’ to ‘strongly disagree’. Responses to the statements were combined to produce an overall score between seven and 28. The scores were then grouped to describe the level of mastery as low (7–19) or high (20–28). The Pearlin mastery scale was asked of people living in non-remote areas only (ABS 2019b).

Mental health is a key component of health and wellbeing. It refers to our collective and individual ability to think, feel and interact with each other. Mental health is a state of wellbeing in which every person realises their own potential, can cope with the normal stresses of life, and is able to contribute to their community. Mental health can affect and is affected by socioeconomic, biological and environmental factors. These can include a person’s access to services, living conditions, discrimination experienced and employment status. Mental health affects not only the individual but also their families and carers.

Perceived social support was determined using a set of six statements from the Multidimensional Scale of Perceived Social Support (MSPSS), which measure a person’s perception of the social support they receive from family and friends. Respondents were asked to respond to each statement by selecting one of seven responses presented on a prompt card, ranging from ‘very strongly disagree’ to ‘very strongly agree’. ‘Don’t know’ and refusal options were available and, if selected, a score was unable to be determined. Responses to the statements were combined to produce a family score, a friends score and an overall score. The family, friends and overall scores were grouped to describe the level of perceived social support from each dimension as low (1–2.9), moderate (3–5) or high (5.1–7). The MSPSS was asked of people living in non-remote areas only (ABS 2019b).

Psychological distress was determined using the Kessler 5 (K5), which is a measure of non-specific psychological distress, derived from a modified version of the Kessler Psychological Distress Scale (K10). It is designed for use in surveys of Aboriginal and Torres Strait Islander peoples. Respondents were asked questions about how often they had experienced negative emotional states in the previous four weeks by selecting one of five responses, ranging from ‘all of the time’ to ‘none of the time’. Responses were combined to produce an overall score between five and 25. The scores were then grouped to describe the level of psychological distress as low/moderate (5–11) or high/very high (12–25) (ABS 2019b).

Self-determination is the process by which communities control their destinies, particularly in relation to political status and economic, social and cultural development. For the people in First Nations communities, this means the freedom to live well and according to their own values and beliefs.

Where do I go for more information?

This information was compiled from the following data sources: National Aboriginal and Torres Strait Islander Health Survey (NATSIHS) 2018–19 and Australian Early Development Census (AECD). More information about these data sources and their data quality is available in Data sources.

For more information about employment and education for Indigenous Australians, see the AIHW and NIAA Aboriginal and Torres Strait Islander Health Performance Framework.

Data quality issues

Care has been taken to ensure that the results of survey data presented above are as accurate as possible. However, the following factors should be considered when interpreting these estimates.

Data collected from self-report surveys may differ from information available from other sources.
Accuracy of responses may be affected by the length of time between events experienced and participation in the survey.
Some people may have provided responses they felt were expected, rather than those that accurately reflect their own situation (ABS 2019).

See ABS NATSIHS 2018–19 Methodology for more information.

References

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Data tables

Table number and titles	Source	Reference period
Table EE.1: Social and emotional wellbeing among First Nations people, by educational attainment, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.2: Employment among First Nations people, by presence of mental health conditions and sex, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.3: Social and emotional wellbeing among First Nations people, by employment status, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.4: Household income and financial stress among First Nations people, by presence of mental health conditions, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.5: Social and emotional wellbeing among First Nations households, by household income and financial stress, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.6: Gross weekly personal income among First Nations people, by presence of mental health conditions, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.7: Social and emotional wellbeing among First Nations people, by gross weekly personal income, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.8: Education or employment restriction among First Nations people, by presence of mental health conditions, 2018–19	AIHW analysis of ABS NATSIHS	2018–19
Table EE.9: Social and emotional wellbeing among First Nations people, by education or employment restriction, 2018–19	AIHW analysis of ABS NATSIHS	2018–19