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Community Development Employment Projects (CDEPs) are community-run programs designed to provide employment for indigenous Australians. Participation is voluntary and benefits include skills development and increased confidence and self-esteem. It is expected that the increased skill and training provided through a CDEP job will prepare indigenous Australians to compete for mainstream employment. Drawing on data collected by the Office of Evaluation and Audit, Aboriginal and Torres Strait Islander Commission (ATSIC), Canberra, the author uses the logistic regression technique to analyse the employment outcome of CDEP participants during the survey week. The specific focus of the paper is on the effect of education and training on the employment outcome of indigenous Australians who participated in a CDEP scheme. The results reveal that the employment outcome was not associated with the level of education or training the participants possessed. The only variables that were significant predictors of employment outcome among CDEP participants were their age and previous experience with a non-CDEP job. It is concluded that training and education acquired during the CDEP participation does not increase the employment outcome of indigenous people. It is recommended that if the CDEP scheme is to increase the employment outcome of its participants, a more focused service-oriented training is needed.