New report also reveals a 'firm but not excessive' wage growth
Australia's labour market remained under pressure in January, with an estimated 21,000 jobs added across the economy, according to new figures from Commonwealth Bank's (CBA) Wage and Labour Insights.
The bank's internal Labour Insights data suggest employment growth is still solid but gradually moderating.
"The December official labour force survey was very strong and showed unemployment falling sharply, but that survey can be volatile," said Harry Ottley, an economist at Commonwealth Bank.
"Our internal indicators do not suggest a material re-tightening in the labour market at this stage."
Wage growth in January
On the pay side, CBA's wage data show quarterly wages up 0.8% in January, with annual growth holding at 3.1%.
Overall wage growth has been moving broadly sideways, although quarterly outcomes have edged higher since the middle of 2025.
"While wage growth is firm but not excessive, weak productivity growth means businesses continue to face elevated labour cost pressures," Ottley said. "This underpins our assessment that labour market conditions remain tight and are still contributing to inflation."
Western Australia again recorded the strongest gains in wage growth with 4.1% annually in January, according to the report. Other states and territories recorded:
- ACT (3.5%)
- South Australia (3.5%)
- Queensland (3.3%)
- New South Wales (3.2%)
- Victoria (3.1%)
- Tasmania (3.0%)
- Northern Territory (2.6%)
Ottley said both the bank's internal indicators and official statistics would be closely monitored over coming months for signs of any shift.
"Taken together, the January data point to a labour market that is still tight and on a solid footing, but not one that is materially strengthening," he said.
CBA's Wage and Labour Insights report draws on de-identified salary flows from around 400,000 CBA accounts. It provides an early read on wages and employment trends ahead of the Australian Bureau of Statistics' official labour force release.
