Unemployment on Native American Reservations

povertyinequality

May 30

Written By Belle Haslam

By Belle Haslam

Published Summer 2024

Special thanks to Mason Scholes for editing and research contributions.

Summary+

Unemployment has long been a persistent issue plaguing Native American communities residing on reservations across the United States, dating back to the establishment of these reservations in the early 19th century. With the average unemployment rate reaching 10.5%, Native Americans face some of the highest rates of joblessness among racial and ethnic minority groups. This disparity in employment is reflected in per capita income figures, which show a staggering $9,000 difference between Native American reservations and adjacent counties, underscoring the economic challenges faced within reservation boundaries. The root causes of unemployment on reservations are multifaceted, including factors such as limited access to education, the persistence of traditional tribal economic structures, and ongoing racial discrimination. This unemployment not only exacerbates economic hardship but also contributes to broader social issues such as inadequate housing, food insecurity, and health disparities within Native American communities. However, amidst these challenges, there is hope as various government and nonprofit organizations dedicate their efforts to improving employment opportunities and overall quality of life for Native Americans. Concerted efforts aimed at addressing these root causes offer potential pathways toward economic empowerment and improved well-being for Native Americans living on reservations.

Key Takeaways+

Unemployment has been an issue affecting Native Americans living on reservations in the United States since the creation of reservations in the early nineteenth century.
Native Americans have the highest unemployment rates of any racial or ethnic minority group, with an average unemployment rate of 10.5%.
Per capita incomes between Native American reservations and adjacent counties average around $9,000 lower on reservations than surrounding counties.
There are many government and nonprofit organizations working to improve employment opportunities and many other areas of life for Native Americans.

Key Terms+

Food Insecurity—Food insecurity is the limited or uncertain availability of nutritionally adequate and safe foods, or the limited or uncertain ability to acquire acceptable foods in socially acceptable ways.¹

Health Disparities—Health disparities are preventable differences in the burden of disease, injury, violence, or opportunities to achieve optimal health that are experienced by socially disadvantaged populations.² Housing Overcrowding—A household is considered as living in overcrowded conditions if less than one room is available in each household: for each couple in the household; for each single person aged 18 or more; for each pair of people of the same gender between 12 and 17; for each single person between 12 and 17 not included in the previous category; and for each pair of children under age 12.³

Native American Reservation—A Native American reservation is a designated area of land owned by the government but set aside specifically for Native American tribes or individuals under treaties, executive orders, federal statutes, or administrative actions.⁴

Unemployment—The condition where individuals who are considered employable and actively seeking employment are unable to secure a job.⁵

Context

Q: What does unemployment look like on a Native American reservation?

A: Unemployment, though a nationwide problem, has been experienced on Native American reservations at significantly higher rates for many years. Unemployment refers to the condition where individuals who are considered employable and actively seeking employment are unable to secure a job.⁶ This phenomenon is typically measured by the unemployment rate which is calculated by dividing the number of unemployed individuals by the total number of people in the workforce.⁷ High unemployment often arises during economic recessions when companies reduce production due to a decline in demand for their products or services, resulting in workforce layoffs.⁸ Unemployment affects over 200 million people worldwide.⁹ One population that is disproportionately impacted by unemployment is those who live on the Native American reservations in the United States. A Native American reservation is a designated area of land owned by the government but set aside specifically for Native American tribes or individuals under treaties, executive orders, federal statutes, or administrative actions.¹⁰ There are approximately 326 federally recognized Native American lands covering 56.2 million acres in the United States, known as reservations, pueblos, rancherias, missions, villages, and communities; these designations depend on the size or where it is located.¹¹ Some reservations are remnants of tribes’ original land bases, while others were created through forced relocations.¹²

Unemployment on Native American reservations is notably high, with reservations averaging 10.5% unemployment and some experiencing rates close to 80%, a stark contrast to the national average which is around 5%.,¹³^,¹⁴ The historical context of the US government's policies, which isolated and concentrated Native Americans in areas with limited natural resources and underdeveloped infrastructure, contributes to the lack of jobs and other economic challenges faced by these communities.¹⁵The remoteness of many reservations from major population centers and economic hubs increases the difficulties in accessing job opportunities.¹⁶ Native American revelation in America include only two urban centers with 50,000 people or more; Flagstaff, Arizona and Farmington, New Mexico.¹⁷ Additionally, the decline of certain industries, loss of jobs in construction and manufacturing, and the reduction of the minimum wage have further contributed to unemployment challenges on reservations.¹⁸

Q: Who on the reservations are most affected by high unemployment?

A: Unemployment does not discriminate against those it affects, taking its toll on Native Americans across the United States. There are over 5 million Native Americans in the United States, making up almost 2% of the population.¹⁹ According to the US government, a Native American is any “person having origins in any of the original peoples of North and South America (including Central America) and who maintains tribal affiliation or community attachment.”²⁰ There are over 500 tribes recognized by the government with the Navajo Nation making up the largest share of the native population with almost 400,000 tribal members (14.6%), followed by the Cherokee (10.0%), Choctaw (3.2%), and the Lumbee Tribe of North Carolina (2.5%).²¹ Of the many Native American tribes, the Sokaogon Chippewa Community, Pechanga Band of Luiseno Indians, Oglala Sioux Tribe of Pine Ridge, Cheyenne River Sioux Tribe, and the Apache Tribe of Oklahoma have some of the highest unemployment rates, reaching up to 93%.²² In the 1950s, approximately 50% of Native Americans lived on government-owned reservations. Since then, there has been a steady decline in the number of natives living on the reservation as they leave the rural, underdeveloped land in search of greater opportunities.²³ As of 2020, 13% of Native Americans live on reservation lands in the United States.²⁴ When comparing all Native Americans living on the reservations, Native American men with high levels of education who are born outside the reservations make up the demographic with the highest employment rates.²⁵ Additionally, in the poorest reservation communities, where educational attainment is much less common, only one in three men have full-time, year-round employment.²⁶ The Native American employment rate among 25 to 54-year-olds, the age range with the highest levels of employment, was still 13.4 percentage points lower than the white rate.²⁷ Native families are also significantly affected by Unemployment, with 35% of native families containing an unemployed person compared to the national family unemployment rate of 4.7%.²⁸^,²⁹ Outside of the reservations, Native American unemployment rates are lower but still much higher than the national average.³⁰

Q: How long has unemployment been an issue on the Native American reservations?

A: The historical context and government policies surrounding the creation of reservations, along with traditional tribal views on modern economics, have caused unemployment to be a longstanding issue on Native American reservations. The establishment of reservations for Native Americans began in the 19th century with the Indian Removal Act of 1830. This legislation, justifying the relocation of Native Americans east of the Mississippi River to areas west of the river, marked the start of the isolation and concentration of American Indians.³¹ The Indian Appropriations Act of 1851 further authorized the creation of Indian areas, leading to the establishment of smaller parcels known as reservations.³² Reservations have therefore been a part of US history for over a century, with their structure and purpose evolving over time.

Unemployment has been a longstanding issue in these Native American Reservations, dating back to the late 19th and early 20th centuries. Strong tradition on reservations has caused Native Americans to struggle to join the rest of the United States in the career world.³³ For example, traditional tribal law, often still in use today, does not follow standard, uniform rules or have well-developed commercial codes and precedents. These traditions lead many outside companies and investors to be reluctant to work with Native American tribes, limiting job opportunities and economic growth.³⁴ The economic challenges on Native American reservations are also deeply rooted in historical policies and geographical factors such as constant government intervention and living on rural lands lacking resources. The isolation and concentration of Native Americans, justified by early legislation like the Indian Removal Act of 1830, contributed to persistent joblessness over generations by forcing Native Americans onto low-quality land with insufficient resources, leading to a historical reliance on government aid.³⁵ The General Allotment Act of 1887, or the Dawes Act, divided reservation land into plots to be given to individual Native Americans in an effort to strengthen native property rights but also contributed to economic challenges.³⁶ The lands given to each native continued to be far from urban centers and did not give natives enough space to farm, severely limiting their economic opportunities.³⁷ Despite subsequent policy changes like the Indian Reorganization Act of 1934, which aimed to reverse the damage of the previous policies, unemployment has persisted, impacting generations of Native Americans living on the reservations.³⁸^,³⁹

Q: Where in the Native American reservations is unemployment worse?

A: Native American reservations are located across various states in the United States. The 14 states with the highest Native American or Alaska Native populations and reservations include California, Oklahoma, Arizona, Texas, New Mexico, Washington, New York, North Carolina, Florida, Alaska, Michigan, Oregon, Colorado, and Minnesota.⁴⁰ Alaska has the highest proportion of the population identifying as Native American with 19.6%.⁴¹ Reservations can vary in size, with one of the largest: the 16 million-acre Navajo Nation Reservation, spanning multiple states including Arizona, New Mexico, and Utah, and smaller ones, like the 1.32-acre parcel in California housing the Pit River Tribe's cemetery, and exist throughout these states.⁴²

Unemployment on Native American reservations is notably severe in states such as South Dakota, Mississippi, Arizona, and New Mexico.⁴³ The Pine Ridge and Rosebud Sioux reservations in South Dakota face challenges such as elevated school dropout rates, government corruption, and underdevelopment, contributing to elevated unemployment and underemployment.⁴⁴ On reservations in Mississippi, Native Americans experience high unemployment, particularly among the Choctaw Indians, and 33.49% live in poverty. Arizona and New Mexico also face extreme unemployment issues along with resource scarcity, corruption, and insecurity in certain areas.⁴⁵

Given the widespread nature of high Native American unemployment rates across the United States, it is evident that Native American unemployment rates do not discriminate by geographical location. Three of the four states with the worst Native American unemployment have incomes in the bottom 30%, suggesting that the wealth and resources of the state may impact the unemployment of the reservations.⁴⁶ However, the correlation between state-level unemployment and reservation-specific unemployment varies, highlighting the unique challenges faced by Native American communities within these states.

Contributing Factors

Lack of Education

A significant obstacle hindering employment advancement for Native Americans is the absence of formal educational qualifications.⁴⁷ The Bureau of Labor Statistics has consistently found that “earnings increase and unemployment decreases as educational attainment rises.”⁴⁸ Generally, those with a bachelor’s degree face unemployment rates of around 2.8% and a median weekly income of $1,137 while those with less than a high school diploma have unemployment rates of nearly 8% and a median weekly income of $493.⁴⁹ Historically, Native groups have had the lowest high school graduation rates of any ethnic category, with a 75% completion rate in 2016 compared to the national high school completion rate of 88%.⁵⁰

Participation of Native Americans in higher education remains similarly low. In regards to Native Americans pursuing postsecondary education, the first-year retention rate is approximately 50%, contrasting with nearly 70% for the general population at major colleges and universities.⁵¹ The Institute for Higher Education Policy indicates that out of those with at least a bachelor's degree, Native Americans living on reservations make up the smallest percentage.⁵² Moreover, Native American students have the lowest attendance rates of any ethnicity. Research done on eighth-grade students shows that 10% of the Native American students studied missed five or more days of school. In comparison, less than 5% of their white counterparts missed similar amounts of school.⁵³ Chronic absenteeism has been shown to lead to a lower grade point average, inability to form healthy peer relationships, decreased likelihood of graduation and attending higher education, and overall underperformance.⁵⁴

Several reasons contribute to Native American youth leaving school, including value conflicts with the educational system, lack of perceived relevance of education, doubts about the utility of education given high tribal unemployment, lack of confidence in intellectual ability, learning disabilities, bias, and conflicts between pursuing education and maintaining family and tribal connections.⁵⁵ Additionally, the majority of reservation schools are in remote areas that lack quality places of employment, further discouraging educational pursuits among tribal members because they fail to see education’s importance and effectiveness in helping them find employment.⁵⁶ Even those who do attend school face disadvantages as the education offered at public schools on reservations is often taught at a lower level leading to lower standardized test scores.⁵⁷ In 2007, the National Center for Educational Statistics found that Native Americans scored 40 points lower than their white counterparts in both the critical reading and mathematics sections of the SAT.⁵⁸ Lower standardized achievement test scores increase the difficulty of enrolling into and attaining higher education, which is the highest predictor of receiving employment.⁵⁹

Individuals who graduate high school have more options available to them such as opportunities to receive higher education, more connections to and trust with employers, and subsequently are more likely to secure employment.⁶⁰ High educational attainment significantly increases the odds of employment among Native Americans. American Indians with advanced degrees have seven times the odds of employment compared to those with less than a high school education. GED holders have 50% greater odds of being employed than those without a high school education.⁶¹

Traditional Tribal Economic Structure

The traditional economic structure on Native American reservations presents significant barriers to employment and economic development for Native Americans.⁶² For example, one key challenge is the lack of individual property rights, which hinders entrepreneurship and wealth accumulation.⁶³ Property is often used as collateral for loans, and without the ability to own and leverage property for funds, many small businesses on reservations struggle to get started, perpetuating a cycle of economic stagnation.⁶⁴ Lenders are also often reluctant to enter into financing agreements with tribes and tribal corporations due to concerns over tribal sovereignty and political systems.⁶⁵ Because each tribe is its own entity with its own legal and political systems, they lack standardized regulations and protocols.⁶⁶ This lack of standardization causes investors to be wary when providing financing for new companies under tribal jurisdiction.⁶⁷ Without easy access to financing, it becomes difficult to start and develop new businesses, which generate 44% of the United State’s economy and as such, are crucial for job creation and economic growth.⁶⁸

Furthermore, companies and investors are often hesitant to engage in business ventures on reservations due to the uncertainties surrounding the enforcement of contracts under tribal law.⁶⁹ Because tribal law does not follow standard, uniform rules or have well-developed commercial codes and precedents, many outside companies and investors have concerns about the legal procedure in case of disputes.⁷⁰ This reluctance of external businesses to operate on reservations further limits job opportunities and economic growth. Some reservations have adopted the judicial systems of the states where they are located by implementing standard state procedures and legal practices. Studies have shown that these reservations experience faster per capita income growth by nearly 30% compared to those that have not.⁷¹ Despite the potential for small businesses to drive job growth, Native Americans have struggled to establish significant entrepreneurial ventures. Reports indicate that Native American-owned businesses are among the fewest of all minority groups in the United States, highlighting the systemic barriers they face in accessing financing, navigating legal complexities, and overcoming cultural resistance to economic empowerment.⁷²

Native American views on capitalism have played a significant role in prolonging the use of traditional economic and legal systems, perpetuating unemployment and economic disparity on reservations.⁷³ The culture of the reservations along with a long history of reliance on government intervention often fosters a mindset of dependency and resistance to capitalism.⁷⁴ Entrepreneurial success may be viewed negatively, and individuals who strive for self-sufficiency may face ostracism.⁷⁵ Bill Yellowtail, a former Crow leader says “Capitalism is considered threatening to [their] identity, [their] traditions. Successful entrepreneurs are considered sell-outs.”⁷⁶ Additionally, many Native Americans promote communalism, where individuals prefer to rely on the tribe and traditional, native economic methods to provide for their families rather than pursuing individual economic opportunities, keeping the traditional tribal structures in place despite continuing unemployment.⁷⁷

Racial Discrimination

Racism and discrimination have deeply affected American society, and their detrimental effects are prominently reflected in the employment disparities experienced by Native Americans.⁷⁸ Despite strides towards equality, Native Americans continue to face systemic barriers that hinder their access to employment opportunities, resulting in persistently high levels of unemployment across all Native American reservations.⁷⁹ Furthermore, the historical legacy of discrimination and oppression, including colonization, forced relocation, and assimilation efforts, has created enduring challenges for Native communities in accessing employment opportunities.⁸⁰

One stark indicator of this disparity is the substantial difference in per capita incomes between Native American reservations and adjacent counties, which averages around $9,000 lower on reservations.⁸¹ Additionally, Native Americans are often characterized as being "last hired and first fired," reflecting a pattern of discriminatory employment practices that perpetuate economic marginalization.⁸² Statistics further highlight the extent of this inequality. Even when factors such as age, sex, education level, marital status, and state of residence are similar between Native Americans and whites, the odds of Native Americans being employed are 31% lower than those of their white counterparts.⁸³ This disparity is particularly pronounced in regions where the proportion of Native Americans is relatively high, such as Alaska, the Northern Plains, and the Southwest.⁸⁴ Some sociologists theorize that this disparity exists because the larger the minority group, the more they pose a challenge to the dominant group’s control over resources, which can increase prejudice and discrimination against the minority group.⁸⁵ Therefore, the fact that Native Americans are doing worse in the markets where they make up a larger percentage of the population suggests racial discrimination is prevalent.⁸⁶

The impact of racism and discrimination on Native American employment is further compounded by the lack of attention given to Native American unemployment data.⁸⁷ The year 2020 was the first time the Bureau of Labor Statistics released monthly data on Native American unemployment. Until recently, Native Americans were not independently reported in government monthly unemployment data reports like many other racial minorities are.⁸⁸ The lack of separate unemployment information for Native Americans has made it challenging for officials and policymakers to accurately assess the unique circumstances of Native Americans compared to the broader labor force.⁸⁹ Insufficient insight into the genuine economic status of Native Americans hampers the implementation of effective assistance and policies, perpetuating the enduring employment obstacles and high unemployment rates encountered on the reservations.⁹⁰

Consequences

Inadequate Housing

Unemployment on Native American reservations has led to an epidemic of inadequate housing faced by those who live there. Unemployment and the housing crisis have been a problem on Native American reservations for hundreds of years, both finding their roots in historical injustices and federal policies.⁹¹ In an effort to help Native Americans assimilate into Western life, the government forced Native Americans to abandon the traditional housing practices they had been using for hundreds of years in hopes that they would transition to using the country’s current housing practices.⁹² However, high unemployment rates and lack of resources made it almost impossible for the natives to afford anything resembling conventional market housing at that time.⁹³ Good credit, down payment funds, and stable sources of income are each required for acquiring a mortgage and housing but high unemployment rates make these requirements almost impossible to obtain, leaving natives homeless or forced to rely on government housing.⁹⁴ Ninety percent of Native American renters say that they wish they owned their own home but are unable to do so.⁹⁵ Surveys have found that the number one reason they had been denied was a low credit score or lack of a credit history, followed closely by not having a sufficient downpayment.⁹⁶

Unemployment and the resulting lack of resources available to purchase a home have led to extreme cases of overcrowding. It is found that Native American families in tribal areas who do have housing tend to take in family members and others who do not have a place to stay causing overcrowding to be much more common on reservations than homelessness.⁹⁷ According to household surveys, 19% of Native American households said they had more household members than could live in their unit comfortably and 17% said they had household members that were there only because they had no other place to stay.⁹⁸ Of the 213 largest tribal areas, the top quarter of the most overcrowded areas, all exceeding an overcrowding rate of 18%, were primarily located in the most impoverished regions such as the Plains, Arizona, New Mexico, and Alaska.⁹⁹ In contrast, the bottom quarter of the most overcrowded areas, with overcrowding rates below 4.5%, generally corresponded to areas boasting the highest levels of private-sector employment, showing the magnifying effect that unemployment and lack of income have on the lack of adequate housing.¹⁰⁰

Those fortunate enough to secure housing still encounter challenges. Native American households earning less than 80% of the local median income experience nearly 40% more physical housing issues, like insufficient insulation and lack of indoor plumbing, compared to the tribal area average for Native Americans.¹⁰¹ Forty percent of housing on reservations is considered to be substandard in quality compared to 6% throughout the rest of the country.¹⁰² Less than 50% of native homes are connected to a public sewer system and of the homes that are connected to public sewer systems, 16% lack indoor plumbing.¹⁰³ Despite poor conditions, 23% of Native households pay 30% or more of their household income to housing alone.¹⁰⁴ The government has promised increased and improved government housing for natives for years but efforts have been minimal and the demand still far outweighs the supply.¹⁰⁵

Food Insecurity

Unemployment further affects Native Americans living on reservations by severely augmenting food insecurity. Food insecurity is defined as “the limited and uncertain availability of healthy foods” and is experienced consistently by 25% of Native Americans.¹⁰⁶ Economic factors, including inadequate income, limited wealth, excessive debt, and high living expenses, often underlie the issue of food insecurity within families;¹⁰⁷ issues which are all exacerbated by high unemployment rates on reservations. Approximately 14.4% of native households lack parental employment and the average per capita income of Native Americans is 40% less than the population average of the United States.,¹⁰⁸^,¹⁰⁹ Research has consistently revealed that food insecurity disproportionately affects households with lower total income and those lacking parental employment.¹¹⁰ In fact, 28% of Native American households with children experience food insecurity, compared with 16% of non–Native American households with children.¹¹¹ Native Americans are twice as likely to be food insecure than whites.¹¹² Furthermore, 38.7% of Native Americans with incomes below the federal poverty level were food insecure, with the same study consistently finding a positive association between the lack of income and food insecurity.¹¹³

There are many reasons why unemployment leads to high levels of food insecurity. For example, without the consistent and reliable income that comes from having a secure job, Native Americans struggle to be able to purchase sufficient amounts of healthy foods, which tend to be more expensive and harder to find.¹¹⁴ As a result, they turn to low-price, low-nutrition alternatives. Children who experience food insecurity are less likely to have a diet that meets recommended guidelines for nutrition and are more likely to experience nutrition-related illnesses.¹¹⁵ For example, Native Americans claim the highest rate of diabetes and highest diabetes mortality rates in the United States.¹¹⁶ Native Americans are further disadvantaged by being unable to get to the grocery stores with cheap, healthy food options.¹¹⁷ It is found that 25.6% of the population in tribal reservations reside one mile or less from a supermarket, compared to 58.8% of the rest of the US population.¹¹⁸ The lack of public transportation and the subsequent reliance on automobiles disproportionately affects unemployed and low-income households and their ability to access food on a daily basis.¹¹⁹

Health Disparities

Unemployment is a significant factor contributing to increased health disparities among Native American communities. The lack of resources and income resulting from unemployment makes it challenging for individuals to access high-quality healthcare.¹²⁰ For example, the lack of income and health benefits like medical and dental insurance that come from having a secure job forces Native Americans to rely solely on government-funded health clinics run by organizations like Indian Health Services (IHS).¹²¹ These tend to lack the funding and staff to be effective resulting in high numbers of untreated and prolonged health problems. In fact, the funding given to IHS clinics by Congress is found to cover only 34% of the health needs of Native Americans in the United States.¹²² Additionally, the lack and remoteness of healthcare services create further barriers for low-income members of Native American communities. For example, in Colorado, where a significant portion of the Native American population resides in Denver, the closest IHS facility is located 390 miles away in the southwest corner of the state, making it practically inaccessible for many.¹²³ For those without a steady income and the economic resources needed to travel, like money for gas and a car, access to healthcare facilities is nearly impossible and results in poorer health outcomes.¹²⁴

Furthermore, unemployment itself can lead to mental health issues, which in turn can contribute to a range of physical health problems.¹²⁵ Adverse adulthood experiences such as poverty and poor economic situations, which stem from unemployment, have been found to lead to depression, anxiety, and other mental health issues.¹²⁶ Native Americans, who have an unemployment rate almost double the national average are also found to have a suicide rate 1.5 times the national average.¹²⁷ The adverse conditions due to lack of a career and means to provide for a family are also found to lead to increased levels of persistent stress.¹²⁸

Native Americans consistently report serious psychological distress, 2.5 times more often than the general population over the span of a month.¹²⁹ For years research has found that this type of chronic stress can raise blood pressure and increase the risk of heart attack or stroke.¹³⁰ These and other diseases of the heart are the leading cause of death for Native Americans and lead to mortality for Native Americans 10% more often than other races.¹³¹ Chronic stress is also shown to weaken your immune system making you more susceptible to illness and disease, partially contributing to Native Americans experiencing a higher rate of disease and mortality than any other group in the United States.¹³²^,¹³³ Moreover, poor social circumstances due to unemployment and the subsequent impaired mental health can affect the quality of parenting skills, perpetuating intergenerational health disparities.¹³⁴

Practices

Unemployment on Native American Reservations in the United States is a predicament acknowledged by many, with government agencies and nonprofit organizations alike working to improve job opportunities and remedy the subsequent consequences of the current lack thereof. Organizations' most successful and popular interventions are economic, financial, and employment training services. These programs focus on teaching Native Americans the skills necessary to start a business, increase employment opportunities, further education, and other similar helpful information. For example, the Division of Indian and Native American Program’s (DINAP) Workforce Innovation and Opportunity Act (WIOA) Section 166, the Department of Labor works to provide “quality employment and training services to tribes, tribal organizations, Alaska Native entities, Indian controlled organizations and Native Hawaiian organizations serving unemployed and low-income Native Americans, Alaska Natives, and Native Hawaiians.”¹³⁵ Section 166 includes programs such as support in finding employment, training to develop academic and vocational skills, improving the ability to compete with other job seekers, and economic development in Native American Communities.¹³⁶ The Department of Labor works to accomplish these goals through partnerships with other organizations and funding from the government and other grantees.¹³⁷ The Native American Training Council provides direction to the Secretary of Labor in order to ensure the operations of the Workforce Innovation and Opportunity Act Section 166 are successful and meet the necessary requirements.¹³⁸ This council is made up of leaders and representatives from different Native American tribes to guarantee the best interests of the natives are always kept in mind.¹³⁹

Other non-government organizations, like The National Center for American Indian Enterprise Development (NCAIED), provide similar training to do their part to help with the unemployment epidemic faced by Native American reservations. NCAIED is dedicated to helping Native American tribes and businesses with economic growth and opportunity by expanding the “American Indian private sector which employs Indian labor, increases the number of viable tribal and individual Indian businesses, and positively impacts and involves reservation communities by establishing business relationships between Indian enterprises and private industry.”¹⁴⁰ NCAIED completes its mission by providing training and resources to Native entrepreneurs, supplying management and technical assistance to Native American businesses, and hosting produce conferences, trade fairs, and fundraising events that advance economic development across reservations.¹⁴¹ Together these organizations work to improve the economic well-being of Native Americans while simultaneously acknowledging and respecting the tradition, culture, values, and beliefs of those they are trying to help.¹⁴²

Impact

Government and nonprofit employment training programs have made a substantial impact on the employment and economic opportunities of Native Americans. For example, on average, 59% of Native tribe members enrolled in the WIOA Section 166 programs secured employment, boasting a retention rate of 74.4% in 2021. In addition, the youth program helped 85.5% of its participants complete a summer job.¹⁴³ Government programs have been found to help Native Americans not only in their efforts to secure employment but also in their overall appeal to employers.¹⁴⁴ Improvement in areas such as education and internship attainment, and occupational and leadership skills have also been found.¹⁴⁵ Similar results have been found when Native Americans participate in The National Center for American Indian Enterprise Development programs. In 2022, NCAIED helped 3,764 clients secure contracts worth over $4 billion.¹⁴⁶ NCAIED trained 176 new, Native American-run businesses and provided nearly $500,000 in capital for participants.¹⁴⁷ They have produced long-term impact through growing Native-owned businesses, building strong relationships with and receiving support from political leaders in Washington D.C., and increasing the ability for Native Americans to secure financing and become entrepreneurs.¹⁴⁸

Gaps

Despite the positive impact of the government and nonprofit organization training programs around the country, there is still room for improvement in order to create a more sustainable and lasting impact. Government programs have historically had a lack of resources and inefficient program delivery.¹⁴⁹ Furthermore, while Federal agencies are required by law to provide programs and services to Native American tribes on reservations and report their outcomes, they have yet to implement a formal process to regularly provide feedback from federal agencies and stakeholders or from tribe members themselves to make suggestions for improvement.¹⁵⁰ The application process to apply to programs can also be complex and has been hard for natives to navigate and use effectively to help improve their situation.¹⁵¹ More communication between different programs and agencies could help increase the ability to help more natives.¹⁵²

Moreover, nonprofit organizations like NCAIED often focus on one specific group. For example, NCAIED focuses mainly on helping Native Americans who have already started or are currently trying to start a business, which is a very small percentage of natives.¹⁵³^,¹⁵⁴ Programs focused on unemployment also tend to measure the effect that they have on improving employment and economic factors and do not tend to measure the impact that they make on the negative consequences of such.¹⁵⁵ Little is known about the impact that organizations like (WIOA) Section 166 and NCAIED have on problems such as inadequate housing, food insecurity, and health disparities.

Preferred Citation: Haslam, Belle. “Unemployment on Native American Reservations.” Ballard Brief. May 2024. www.ballardbrief.byu.edu.

Viewpoints published by Ballard Brief are not necessarily endorsed by BYU or The Church of Jesus Christ of Latter-day Saints

Footnotes

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Belle Haslam

Belle, originally from Boston, is currently pursuing a major in finance and a minor in global and community impact at Brigham Young University (BYU). Her passion for social impact ignited during her high school years when her mother founded a nonprofit organization, sparking Belle's interest in making a difference. Since then, she has actively engaged in various nonprofit and social impact endeavors, including valuable experiences at the Ballard Center for Social Impact at BYU. Following her mission service in Arizona, where she worked near Native American communities near reservations, Belle became committed to advocating for the well-being of Native Americans and exploring ways to support their communities.