Employment growth slows, wage growth moderates in December
Australia's labour market remains "slightly tight" as employment growth slows and wage growth moderates in December, according to the latest data from the Commonwealth Bank of Australia.
The CBA's latest Wage and Labour Insights revealed that 23,000 jobs were added in the Australian economy in December 2025.
Belinda Allen, CBA head of Australian economics, said this was a slight tick down compared to November but a similar amount to the two months prior.
"Our Labour Insights series shows continued solid jobs growth, even as hiring slows from earlier peaks. We judge the labour market to be slightly tight and expect the unemployment rate to stay near current levels through 2026," Allen said.
Wage growth eases
Meanwhile, annual wage growth also eased slightly to 3.1%, down from 3.2% in November, according to the report.
Western Australia recorded the fastest pace of wage growth at 3.6% annually, while the Northern Territory logged the slowest with 2.5% annually. Other states and territories registered:
- ACT (3.6%)
- Tasmania (3.4%)
- South Australia (3.4%)
- New South Wales (3.2%)
- Queensland (3.2%)
- Victoria (3.0%)
"While wages growth moderated slightly compared to November, we still judge the labour market remains on the tighter side, reflecting signs of limited spare capacity in the economy," Allen said in the report.
"This is also contributing to inflation that is too high. Limited spare capacity, an economy performing well, and a RBA on edge should see the cash rate move higher in 2026."
Allen said Australia's labour market remains resilient, but they are closely watching for any shifts in wage momentum or hiring activity in 2026.
"Our data gives us an early read on the labour market, and right now it's clear that resilience remains a defining feature, even as economic conditions evolve," she said.
