Employment minister Michaelia Cash launched the new Aboriginal and Torres Strait Islander employment strategy on Wednesday with a goal to make representation targets "robust" and "achievable".

Ms Cash said the new plan, launched alongside Minister for Indigenous Affairs Nigel Scullion, would aim for three per cent representation across the bureaucracy by 2018.

"We need to find an extra 188,000 jobs just to reach parity with non-Indigenous Australians - and the government is leading by example by committing to the Indigenous employment target across the Commonwealth," Mr Scullion said.

But almost all federal departments have missed representation targets in previous years with only 0.3 per cent of Department of Treasury employees from Aboriginal or Torres Strait Island backgrounds.

Indigenous employees represent just 0.4 per cent of the Department of Treasury with only three staffers on the books, while Finance (20 employees), Industry and Science (17 employees) have less than one per cent.

Indigenous public servants make up between 2.4 and 2.6 per cent of the workforce, but retention is a major problem, with Aboriginal and Torres Strait Islander employees much more likely to quit their jobs or be fired than their non-Indigenous colleagues.

The Department of Prime Minister and Cabinet, which is responsible for the Indigenous affairs portfolio, is the best performing agency at 15.6 per cent representation.

The department welcomed another 15 Indigenous employees in 2014-15, with eight placed in Canberra and seven based in the PM&C regional network.

But the department's annual report found indigenous employment and participation rates across the country were failing, despite some improvements.

"The proportion of Aboriginal and Torres Strait Islander people aged 15–64 in the labour force was 60.1 per cent in 2012–13, down from 64.5 per cent in 2008," the report said.

"However, over the longer term from 1994 to 2012–13, both employment and labour force participation improved."

The strategy will require all departments to post progress updates on the Public Service Commission's website each year.

"We need to offer Indigenous Australians a range of entry pathways into the public service and better career development opportunities for existing Indigenous employees," the strategy said.

"We must also increase the representation of Indigenous Australians in senior leadership positions."

The strategy calls on departments to develop mentors at a senior management level for Indigenous employees and nominate staff talent management programs.

"Agencies should foster workplaces that respect and support the cultural needs of their Indigenous employees," the strategy said.

"Most importantly, deeper understanding and respect for Indigenous culture and heritage will contribute to an improved employment experience for Indigenous employees and this, in turn, will drive improved retention and attraction outcomes."