Economic participation refers to engagement in work or other activity that provides access to economic resources (AIHW 2015). Economic development denotes improvements in wellbeing derived from those resources (McDonald et al. 2019). For tens of thousands of years, Aboriginal and Torres Strait Islander people have participated in economic activity according to their Lore/Law to sustainably fulfill the needs of their communities (Langton and Corn 2023). Traditional economic activity included hunting, fishing, foraging, storing and cultivating plants, managing the landscape and waterways for harvesting, and sharing resources between community members (Koungoulos et al. 2024; Pascoe and Gammage 2021; Rose et al. 2016). Long-distance trading was central to traditional economies, with Aboriginal and Torres Strait Islander people crossing the continent along trade-routes and Songlines and exchanging resources with seafaring traders from Asia (Crabtree et al 2021; Langton 2006; Neale and Kelly 2020).

Today, Indigenous peoples have internationally recognised rights to be fully included in economic development efforts. Colonisation, however, has inhibited the ability of Aboriginal and Torres Strait Islander people to fully realise these rights (Coalition of Peaks 2025; Tauli-Corpuz 2014; UN 2007). Government policies have disrupted traditional economies by forcibly dispossessing Aboriginal and Torres Strait Islander people of their lands and restricting their movement (Langton 2011). Systemic and interpersonal discrimination, exploitative working conditions and government control over employment and income have prevented Aboriginal and Torres Strait Islander people from fully and freely engaging in the Western economic system (Coalition of Peaks 2025; Pearson 2021). These restrictions hinder wealth formation, limit access to resources and entrench economic inequality (Senate Standing Committee on Legal and Constitutional Affairs 2006; Liddle 2018).

Despite these historical and ongoing challenges, the Aboriginal and Torres Strait Islander economy is flourishing. Research, conducted by the Dilin Duwa Centre at the University of Melbourne, shows there has been a 74% increase in the number of businesses operating in the Indigenous business sector between 2006 and 2018, a more than doubling of sector-wide gross income (Evans et al. 2024). The contribution of the Indigenous ecosystem to the Australian economy and community is far greater than the sum of its economic activities. These broader contributions include opportunities for Indigenous employment and self-determination, intergenerational wealth generation, sharing of Indigenous knowledge, provision of culturally sensitive services to communities and trust-building within the community (Evans et al. 2024). Research also shows that Indigenous businesses are up to 100 times more likely to hire an Indigenous employees compared to non‑Indigenous businesses (Supply Nation and First Australians Capital 2018).

Meaningful economic participation promotes and supports improved physical health and emotional wellbeing by expanding access to health services, overcoming financial barriers to housing and breaking cycles of poverty (AIHW 2024; Hunter et al. 2022). A consistent income stream, whether through secure employment or entrepreneurial activity, can provide Aboriginal and Torres Strait Islander people with greater certainty and economic agency (AIHW 2024; Collins and Norman 2018; Eva et al. 2024). Benefits from these forms of economic participation can also flow to individuals’ families and communities through employment opportunities, communal social networks and intergenerational wealth accumulation (Norman 2021; Eva et al. 2023). Aboriginal and Torres Strait Islander people have continuously pursued equitable economic participation through efforts like organising job walk-offs, protesting for equality and seeking restitution and remedy through the legal system (Liddle 2018; Norman 2021; Street v State of Western Australia [2024] FCA 1368).

Many Aboriginal and Torres Strait Islander people still face ongoing structural barriers to economic participation and development, such as institutionalised racism, intergenerational disadvantage and systematic undervaluation of traditional activity (Liddle 2018; Manero et al. 2022; QAHIC 2023). Geographic constraints, higher rates of disability, inappropriate education and training, lack of capital and investment, and limited access to culturally safe opportunities can also act as barriers (Commonwealth of Australia 2023; Dodson 2009; Evans et al. 2024; House of Representatives Standing Committee on Indigenous Affairs 2021). Aboriginal and Torres Strait Islander people have continued to strengthen their engagement in the economy despite these difficulties, with Aboriginal and Torres Strait Islander business activity and employment expanding significantly and materially benefiting communities (Evans et al. 2024).

In addition to the growth of employment and Indigenous‑owned businesses, Aboriginal and Torres Strait Islander people have established opportunities to participate in the Western economy by performing traditional economic and cultural activity (Langton 2011). Aboriginal and Torres Strait Islander communities can earn incomes while strengthening culture and protecting their connections to Country (ATNS nd; Norman 2024; Quiggin and Quiggin 2007; Spencer et al. 2016). The contributions of Australia’s Aboriginal and Torres Strait Islander economic ecosystem extend beyond the economy to the preservation and sharing of Indigenous knowledges and traditions, the provision of trusted and culturally safe services, and the reinforcement of independence and autonomy (Evans et al. 2024).

Meaningful economic participation and development are central to self-determination, and Aboriginal and Torres Strait Islander people have the right to define and pursue their own self-determined economic development priorities (Coalition of Peaks nd; Eva et al. 2024). Aboriginal and Torres Strait Islander people continue to take action and collaborate with governments to help ensure greater economic participation and development opportunities occur for individuals and communities (Coalition of Peaks 2025). Further efforts that would support improved Aboriginal and Torres Strait Islander economic participation and development include:

• educational support to increase senior secondary and tertiary qualification attainments that improve meaningful employment outcomes (NCVER 2023; Venn 2018)
• local employment programs and promotion of culturally inclusive education and workplaces to increase workforce participation (Liddle 2018; Eva et al. 2023)
• commercial education programs, financial assistance, logistical support, investment incentives and trading partnerships to increase the prevalence and success of Aboriginal and Torres Strait Islander-owned enterprises at home and abroad (Brimble et al 2024; Collins and Norman 2018; ILSC 2022)
• comprehensive Indigenous Cultural and Intellectual Property and cultural rights legislation to protect communities against unethical conduct and reinforce the productive value of Aboriginal and Torres Strait Islander cultures (Janke 2021; PC 2022)
• stronger land ownership rights and legal and financial assistance to Traditional Owners when negotiating agreements to increase economic opportunities and self-determination for communities on Country (Campbell and Hunt 2013).

By sex

Nationally in 2021, a higher proportion of Aboriginal and Torres Strait Islander males aged 25–64 years were employed (57.7%) compared to females (53.8%) (figure CtG8.2). The proportions increased by around four percentage points for males and around six percentage points for females since the 2016 baseline year.

By age group

Nationally in 2021, the proportion of Aboriginal and Torres Strait Islander people who were employed was similar across the five-year age groups for people aged 25 to less than 50 years (between 57.4% to 58.8%). From 50 years of age the employment rate declined with each five-year age group, down to 41.0% for people aged 60-64 years (figure CtG8.3). This follows a similar pattern to the 2016 baseline year. From 2016 to 2021, the employment rate increased for all five-year age groups.

By remoteness area

Nationally in 2021, the proportion of Aboriginal and Torres Strait Islander people aged 25–64 years who were employed was highest in major cities (62.1%) (figure CtG8.4). The proportions declined as remoteness increased, down to 35.0% for people living in very remote areas. Since the 2016 baseline year, the employment rate increased in all areas, except for people living in very remote areas where it decreased (less than one percentage point).

By Index of Relative Socio-economic Disadvantage (IRSD) quintile

Nationally in 2021, the proportion of Aboriginal and Torres Strait Islander people aged 25–64 years who were employed was highest in the least disadvantaged socio‑economic areas of Australia (80.8%) (figure CtG8.5). The proportions declined in more disadvantaged areas, down to 41.8% for people living in the most disadvantaged socio‑economic areas of Australia. The proportions have increased in all socio‑economic areas since the 2016 baseline year.

By disability status

Nationally in 2021, 14.2% of Aboriginal and Torres Strait Islander people aged 25–64 years with a need for assistance with core activities were employed, compared to 61.7% who did not have a need for assistance (figure CtG8.6). The proportions increased by around two percentage points for people with a need for assistance with core activities and around five percentage points for persons who did not have a need for assistance, since the 2016 baseline year.

By level of highest educational attainment

Nationally in 2021, the proportion of Aboriginal and Torres Strait Islander people aged 25–64 years who were employed generally increased with higher educational attainment, ranging from 25.4% for those who had attained Secondary Education – Years nine and below to 87.2% for those who had obtained a qualification at the Postgraduate degree level (figure CtG8.7). This follows a similar pattern to the 2016 baseline year.

By type of employment

Nationally in 2021, 34.0% of Aboriginal and Torres Strait Islander people aged 25–64 years were employed full‑time (an increase of around two percentage points since the 2016 baseline), compared to 16.1% who were employed part‑time (an increase of around one percentage point since the 2016 baseline) (table CtG8A.8). A further 5.6% of Aboriginal and Torres Strait Islander people were employed and away from work (an increase of around two percentage points since the 2016 baseline).

Target 8: Increase the proportion of people who are employed

Driver

• Highest level of educational attainment
• Long term health and disability status
• Caring responsibilities