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How might COVID-19 affect the Indigenous labour market?

Author

Listed:
  • Yonatan Dinku

    (Australian National University)

  • Boyd Hunter

    (Australian National University)

  • Francis Markham

    (Australian National University)

Abstract

Macroeconomic shocks and the policy responses to those shocks have significant effects on Australia’s economy. However, research into impacts of such shocks on the Indigenous labour force is limited. This paper explores how the COVID-19 crisis is likely to affect Indigenous labour market outcomes in future. While this paper briefly examines the immediate consequences of the COVID-19 crisis for Indigenous economic outcomes, it discusses the likely longer-run consequences for Indigenous employment at some length. The sectoral concentration of Indigenous employment, the relatively high levels of casual employment and the relatively young age profile of the Indigenous population may increase Indigenous exposure to significant economic risks. Indigenous business disproportionately employ Indigenous workers, but such businesses are concentrated in small to medium enterprises that may be sensitive to recessionary conditions, especially if economic uncertainty leads to a more generalised financial crisis involving liquidity constraints. Recent history demonstrates that Indigenous employment rates have increased only gradually in the long period of macroeconomic growth leading up to the pandemic. Historical disadvantage, discrimination and geographical constraints are important drivers of the dynamics of Indigenous labour market disadvantage that limit educational attainment and ability to find work. For those Indigenous people who secure employment, it can be difficult to retain employment. COVID-19 is likely to lead to an intense period of structural adjustment in the economy, and it is important for the Indigenous community and businesses to position themselves to take advantage of potential opportunities and minimise potential risks. The ongoing digital divide may be a particular problem for Indigenous people accessing work remotely. Poor access to the internet of a substantial number of Indigenous households may also exacerbate access to remote education. Such issues have important implications for addressing Indigenous disadvantage in future.

Suggested Citation

  • Yonatan Dinku & Boyd Hunter & Francis Markham, 2020. "How might COVID-19 affect the Indigenous labour market?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(2), pages 189-209.
  • Handle: RePEc:ozl:journl:v:23:y:2020:i:2:p:189-209
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    References listed on IDEAS

    as
    1. Michael J. Leach, 2019. "N of 1," The Mathematical Intelligencer, Springer, vol. 41(4), pages 28-28, December.
    2. Boyd Hunter & Matthew Gray, 2012. "Indigenous Labour Supply following a Period of Strong Economic Growth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(2), pages 141-159.
    3. Raymond Gani & Steve Leach, 2001. "Transmission potential of smallpox in contemporary populations," Nature, Nature, vol. 414(6865), pages 748-751, December.
    4. Boyd Hunter, 2015. "Whose business is it to employ Indigenous workers?," The Economic and Labour Relations Review, , vol. 26(4), pages 631-651, December.
    5. Boyd Hunter & Matthew Gray, 2012. "Indigenous Labour Supply following a Period of Strong Economic Growth," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(2), pages 141-159.
    6. Jon Altman & Anne Daly, 1992. "Do Fluctuations In The Australian Macroeconomy Influence Aboriginal Employment Status?," Economic Papers, The Economic Society of Australia, vol. 11(3), pages 32-48, September.
    7. Guyonne Kalb & Trinh Le & Boyd Hunter & Felix Leung, 2014. "Identifying Important Factors for Closing the Gap in Labour Force Status between Indigenous and Non-Indigenous Australians," The Economic Record, The Economic Society of Australia, vol. 90(291), pages 536-550, December.
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    Cited by:

    1. Wichmann, Bruno & Wichmann, Roberta, 2022. "COVID-19 and Indigenous health in the Brazilian Amazon," Economic Modelling, Elsevier, vol. 115(C).

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    More about this item

    Keywords

    COVID-19; discouraged workers; discrimination; social exclusion;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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