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Studies have shown that although migrants in general fare worse in the labour market, some migrant groups perform better than others (McAllister 1986; Evans and Kelley 1986; Kelly and McAllister 1984). Studies from the US have also shown that migrant workers working in the ethnic enclaves attain higher socioeconomic rewards compared to the immigrants employed in the secondary sector (Wilson and Portes 1980; Portes and Jensen 1989). Using data collected from the Survey of Issues in Multicultural Australia (1988), this paper reports that ethnic enclaves as a separate economy do not exist in the Australian labour market where migrants can obtain higher status or higher earnings. The paper concludes that the formation of ethnic enclaves as a separate economy needs much more than the establishment of ethnic owned enterprises. [ABSTRACT FROM AUTHOR]