Australia’s labour market is showing its staying power, with wages holding firm and jobs growth continuing in December, according to the Commonwealth Bank’s latest ‘Wage & labour insights’ report.

The report draws on de-identified salary flows from around 400,000 CBA accounts to provide an early snapshot of wages and employment trends, offering a timely view of shifting conditions at potential policy turning points ahead of official ABS data.

Across Australia, wage growth held steady in December, with quarterly growth unchanged from November and annual growth easing slightly to 3.1%. Western Australia continues to lead the nation for wages, up 3.6% in the year to December, despite the state seeing slower growth than the previous month.

The ACT matched WA’s pace, while Tasmania and South Australia followed closely at 3.4%. NSW and Queensland both recorded 3.2%, with Victoria slightly lower at 3%. The Northern Territory saw the slowest wage growth at 2.5%.

Employment growth moderated, with an estimated 23,000 jobs added in December – a slight decrease from November, but broadly in line with previous months. The unemployment rate remains at 4.3%, which CBA says reflects a labour market that’s still on the tighter side.

“Wage growth held steady in quarterly terms, but annual growth moderated a touch,” says CBA Head of Australian Economics Belinda Allen.

“The labour market remains tight, with limited spare capacity contributing to inflation that is still too high.

“We expect wages growth to remain around current rates of growth over the next year, and the RBA is expected to lift the cash rate in 2026.

“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.”

Looking ahead

While employment growth has slowed compared to the strength seen in 2022 and 2023, CBA’s data suggests the labour market remains resilient.

“As we move into 2026, we’ll be watching closely for any shifts in wage momentum or hiring activity,” says Ms Allen. “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.”