Mr Howard said retention rates for Aboriginal school children had increased by 55 per cent in the last 10 years.
"This is practical reconciliation at its best because unless Aboriginal children have education their employment opportunities are going to be limited, and unless they can get jobs they can't be fully enjoying the benefits of Australian society," Mr Howard told Southern Cross Radio.
"I am really cheered by the fact that there has been a 55 per cent lift over the last 10 years in the retention rate of full time Aboriginal students at schools - now that is a terrific result.
"We've still got a long way to go, it is still well below the community average."
Mr Howard was responding to questions about school participation rates released on Thursday.