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This report draws on data from the 1986, 1991 and 1996 Censuses in order to analyse the probability of employment and labour force participation for indigenous and non-indigenous Australians. It finds that the factors related to the probability of employment and labour force participation are different for each population. When calculating employment ratios, the research does not count employment in the Community Development Employment Projects (CDEP) scheme, which accounts for nearly 25% of indigenous employment. Some of the main findings of the research include: that increased educational attainment by non-indigenous Australians in the period of 1986 to 1996 has resulted in improved employment levels, yet increased educational attainment by indigenous Australians has seen little change in employment levels; region of residence is not significant to the probability of employment for indigenous Australians, yet is an important determinant for the non-indigenous; an increase in the proportion of the cohort with a university degree plays an important role in increasing the probability of employment for indigenous males and females, yet is not significant for non-indigenous Australians; and that for indigenous females, marital status is found to be a significant determinant for the probability of participating in the labour force. The paper concludes that indigenous employment disadvantage can be attributed to more than a lack of educational attainment and low levels of labour demand in certain regions, but is also due to other differences like schooling quality, assimilation, and discrimination.