Wage Price Index and Labour Force Data
The unemployment rate remained tight, at 4.1% in January, although the growth in underlying wages did not keep up, with a modest 0.8% increase reported in the quarter up to December 2025.
The reported wage price index, came in below the rate of inflation for the first time in over two years. Annually, the seasonally adjusted wage figure rose by 3.4% for the year. The figure falls below the 3.8% annual inflation rate to December, marking the first time since September 2023 that wages have not maintained a growth rate in line or higher than inflation.
The latest unemployment figures demonstrates a resilient workforce, placing more pressure on the RBA to focus on the persistent inflationary pressure. One of the primary objectives of the RBA is to maintain the health of the workforce and achieve a full employment rate. With the unemployment rate showing continued strength, this leaves the RBA open to implement further monetary policy tightening to address their ongoing concerns with inflation.
Source: Australian Bureau of Statistics, Labour Force, Australia, January 2026.
Australian Bureau of Statistics, Wage Price Index, December 2025.
Australian Bureau of Statistics, Consumer Price Index, December 2025