Issue Brief 5 / 1996

Under the Community Development Employment Projects (CDEP) scheme Indigenous people give up their social security benefits (Jobsearch and Newstart) but work (usually part-time) for much the same money. Under the scheme people can do extra work and can make more money than when they are on social security benefits.

The effectiveness of the CDEP scheme

CAEPR research asks three questions about the CDEP scheme's effectiveness:

1. What effect is the scheme having on jobs in communities?
2. Do Aboriginal and Torres Strait Islander people in communities with CDEP have more jobs and, if they do, what sorts of jobs are they?
3. Do people in CDEP communities make more money than those people in communities without CDEP?

Method

CAEPR research seeks to answer these questions by comparing jobs and incomes in ten Northern Territory communities participating in the CDEP scheme with nine nearby communities that are not CDEP communities. This is done by using data on Indigenous people from the 1991 Census. The CDEP scheme communities were Beswick (Wugularr), Gapuwiyak (Lake Evella), Lajamanu, Milikapiti, Nugukurr, Pularumpi, Pine Creek (Kybrook Farm), Santa Teresa, Umbakumba and Willowra. In 1991 there were 1,381 CDEP scheme participants at the ten communities. The nine communities not on CDEP were Amoonguna, Angurugu, Borroloola, Bulman, Katherine township, Nguiu, Ramingining, Ti Tree and Yuendumu (see map).

Research Findings

1. Employment

The study found that:

• At the CDEP communities, 56.3 per cent of the population were employed, whereas only 19.9 per cent were employed at the non-CDEP communities.
• Eight-hundred-and-thirty-four extra people at the CDEP communities appear to be 'employed' because of the scheme.
• Labour force participation was higher at CDEP communities (59 per cent) than at non-CDEP communities (34 per cent).
• The CDEP communities had far higher levels of part-time employment than the non-CDEP communities - 31.5 per cent as compared to 7.6 per cent of the adult population. This is to be expected given the nature of the scheme.
• Full-time employment at CDEP communities was also higher - 23 per cent compared 9.8 per cent of the adult population. This was a surprising finding which suggests that some people on CDEP work full-time by mixing CDEP part-time work with work funded from other sources.

2. Type of work

• At the CDEP communities 87 per cent of employment was in community services and public administration, compared to forty-seven per cent in the non-CDEP communities. The CAEPR research paper suggests that this may overstate industry concentration in CDEP communities because of a tendency to classify all employees of community councils with CDEP in these two industries, rather than looking at exactly what work they do.
• The study showed a higher proportion of labouring jobs at CDEP communities, 43.9 per cent compared to 18.2 per cent in the non-CDEP communities. This supports the view that the CDEP scheme generates low-skilled employment without providing training to help people to leave the scheme for better paid jobs.
• However, the research also showed that the numbers in higher skilled occupations was greater in CDEP communities, indicating that the scheme provides some other opportunities.

3. Do people in CDEP communities make more money?

• In the CDEP communities people's reported average adult incomes were not much different than those at the communities that did not have CDEP, in fact they were a little lower ($8,900 for CDEP communities compared with $9,357 for other communities). This is a surprising finding because although the CDEP scheme only pays wages at the level of social security benefits, people can earn more money than when they are on social security benefits.
• The study also showed that people were doing more paid work at CDEP communities than the part-time work available through the scheme. The higher average incomes earned at non-CDEP communities are mostly because a higher proportion of people here are earning over $16,000 per year.

Conclusion

The results of this study make the CDEP scheme potentially vulnerable to criticism as the CDEP scheme is more expensive than social security benefits. It is thus important, according to the authors of this study, for the Aboriginal and Torres Strait Islander Commission and participating communities to demonstrate the CDEP scheme's non-financial benefits by publishing statistical and other information showing how it helps communities. A clearer outline of the scheme's goals is also needed. If a goal is for people to gain work experience and move out into other employment, then regular evaluation is needed to assess this. If evaluations show that people are leaving the scheme to get better paid employment the scheme will be seen as successful. If people are merely moving from unemployment to CDEP employment, its value will be questioned unless other benefits of the scheme can be clearly demonstrated.

J.C. Altman and B. Hunter.

This Issue Brief summarised CAEPR Discussion Paper No. 107, 'The comparative economic status of CDEP and non-CDEP community residents in the Northern Territory in 1991', by J.C. Altman and B. Hunter published in May 1996. It was prepared by Linda Roach, assisted by Melissa Lucashenko and edited by Maureen MacKenzie-Taylor.