First Nations people have fallen further behind in the jobs market, according to a report released Thursday by Australia's largest not-for-profit employment services provider.

Workskil Australia's Work Watch report provides insight into the employment prospects of the country's most disadvantaged job seekers.

The new report shows that while total new hires among job seekers receiving welfare payments rose 0.9 per cent in the June 2024 quarter, for First Nations people it fell 4.6 per cent.

The drop in job placements for First Nations people was steepest within trades and services (down 14.4 per cent), hospitality and tourism (down 20.3 per cent) and agriculture, animals and conservation (down 56 per cent).

Founded over 40 years ago, Workskil Australia is the largest not-for-profit employment services provider in the country. The organisation's Work Watch report outlines the experiences of 50,000 registered job seekers.

Workskil Australia chief executive Nicole Dwyer said the results for First Nations job seekers were "extremely concerning".

"First Nations people are over-represented among job seekers and they are also falling further behind when it comes to hiring," Ms Dwyer said.

"More must be done to remove barriers for First Nations people entering employment if Australia is to achieve the Closing the Gap national targets.

"As a community we need to reduce the stigma and discrimination that act as barriers to employment for First Nations job seekers."

Ms Dwayer said targeted skills building, apprenticeship and traineeship pathways, and support to access tertiary education, can all assist narrow the gap.

Jason Taylor, Dirranbandi man who also has Maori heritage, worked with WorkSkil to gain important job skills and qualifications and is now employed as an electrical trades assistant working on major infrastructure projects in Karratha.

He said support from Workskil Australia helped him obtained working-at-heights and high-risk licenses as well as employment with a large construction and engineering company as a fly in-fly-out worker.

"With Workskil's support and my own determination to get a job – it was a perfect match. I'm loving my job," he said.

Ms Dwyer noted that WorkSkil's research also found the highest retention rates for First Nations workers are most often found in workplaces with a focus on cultural education for all staff, however there is still much to be done.

"Despite some positive initiatives being undertaken by public and private sector employers, our report shows it's really one step forward and two steps back," she said.

A federal government spokesperson told National Indigenous Times the government is "committed to working in partnership across government and with First Nations people to make the structural change required to improve outcomes for First Nations people".

"The government has outlined an ambitious program of reform for employment services that better invests in people and supports them on their pathway to work. This has been outlined in the White Paper on Jobs and Opportunities and the response to the findings of the House Select Committee on Workforce Australia Employment Services," he said.

"In the 2024–25 Budget, the Government committed $1.5 million over 3 years to support the newly established National Indigenous Employment and Training Alliance, the key First Nations employment services peak body.  

"The National Indigenous Employment and Training Alliance will play a key advisory role in reforms to employment services and will be supported to work with Aboriginal Community Controlled Organisations (ACCOs) to help build their capacity to deliver employment services."

The government spokesperson said the Commonwealth also investing in targeted programs to support First Nations people into employment.

"In the 2024–25 Budget the Government announced an investment of $76.2 million in a new employment service to support First Nations people out of the justice system," he said.

"The Reconnection, Employment and Learning (REAL) Program will deliver trauma-informed, holistic support and mentoring to help participants connect with social services, community, learning and jobs. ACCOs and First Nations organisations will be encouraged and supported to deliver this service.

"The Launch into Work program funds businesses to deliver pre-employment projects that prepare job seekers for entry level roles in their business. Over the last year, six Launch into Work projects (of 37 total) have been specifically tailored to First Nations people. The project codesign process ensures there is a culturally safe and welcoming workplace for participants to move into and First Nations suppliers are utilised to deliver culturally appropriate and tailored training and mentoring."

The spokesperson said the new Remote Jobs and Economic Development program will also "change lives" in remote communities, creating an initial 3,000 jobs, with "proper wages and decent conditions" over the next three years.