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The Indigenous Employment Policy (IEP), announced in the 1999-2000 Commonwealth Budget, is the Government's response to the continuing high unemployment rates among Indigenous Australians. It was implemented progressively from 1 July 1999 through a comprehensive set of strategies which include a new suite of programs offered under the umbrella of the Indigenous Employment Programme, support for small business development and refinements to Job Network Services for Indigenous people. This report examines the Policy's operation up until June 2001. Main findings include: approximately 12,000 Indigenous people commenced training or employment opportunities under the Indigenous Employment Programme between July 1999 to June 2001, indicating good progress was made in increasing opportunities for Indigenous job seekers; compared to previous Indigenous programs, there has been a strong shift towards private sector companies' participation; outcomes achieved three months after participation in Wage Assistance or Structured Training and Employment Projects (STEP) compare favourably with those achieved under previous labour market assistance arrangements for Indigenous people; in spite of recent improvements in Job Network performance, Indigenous job seekers face more barriers to mainstream participation than any other group. The report also highlights a number of challenges for consideration in the context of its future operations relating to wage assistance, structured training and employment projects and the Corporate Leaders for Indigenous Employment Project.