Led by the kilted members of the Illawarra Pipe Band, with fire trucks bringing up the rear, about 150 people marched from Lowden Square to the city's arts precinct to mark May Day.

This year's event produced speeches targeting government policies in health, higher education, community services and - with the South Coast Aboriginal Advancement League particularly well represented - the planned cuts to services in remote Aboriginal communities.

League member Veronica Bird said the issue had a place on a day traditionally reserved for causes of the labour movement.

"The movement has supported Aboriginal people in this country and supported their rights and struggles as far back as I can remember," she said.

"Today is about fighting for the rights of all Australians and, as an Aboriginal person, to recognise that sometimes we're all fighting for the same things."

Sharon Callaghan, speaking for the Australian Services Union, told the crowd areas including mental health needed more funding, not less.

"Many decision-makers think community services workers ... are going to be way too polite to speak up when they slash our funding programs, but guess what? We're not."