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Australia's Labor Market Remains Tight as Wage Growth Holds Steady, CBA Says

MT Newswires Live01-13 14:35

Australia's employment and wage growth showed resilience in December 2025, with employers continuing to add jobs and wages maintaining strength across most states, according to a Tuesday report by the Commonwealth Bank of Australia (ASX:CBA).

Wage growth in Australia remained steady in December 2025, with annual growth easing slightly to 3.1% and Western Australia leading at 3.6% despite a slowdown from the previous month, per the report.

Employment growth eased in December 2025, with around 23,000 jobs added, slightly less than the previous month, while the unemployment rate remained at 4.3%, reflecting a still-tight labor market, the report said.

"The labor market remains tight, with limited spare capacity contributing to inflation that is still too high," said Belinda Allen, CBA's Head of Australian Economics.

The labor market continues to show resilience, with early indicators pointing to possible shifts in employment and wage trends amid ongoing economic challenges, the report added.

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