An Australian government minister has launched new proposals aimed at increasing labor market participation among the indigenous population.

Minister for indigenous affairs Jenny Macklin unveiled the development strategy for 2011 to 2018 with the Minerals Council of Australia, explaining that the government is committed to enhancing economic opportunities in order "to close the gap on indigenous disadvantage".

She pointed to the work done by the council in developing private sector partnerships with indigenous communities and governments.

The program will focus on areas such as skills development, education and job creation.

In related news, a new report recently predicted that skills gaps in Australia will become more acute in the future.

The study by KPMG forecast that the nation will see talent shortages worsen, having increased by ten per cent in the past year.

A total of 61 per cent of organizations questioned said they were struggling to find the right people to fill roles, with sectors such as natural resources, IT, finance and accounting particularly affected.