Wages hold steady as jobs market remains strong, CBA data shows

The latest CommBank Wage Insights series shows wages growth remained stable in early 2026, despite ongoing tight conditions in the labour market.

CommBank's internal salary transaction data recorded wages rising by 0.7 per cent over the three months to February 2026, slightly softer than the pace seen in November and December. Annual wages growth was steady at 3.1 per cent, where it has broadly hovered since mid-2025.

CommBank Head of Australian Economics Belinda Allen said the data suggests wages have yet to respond to the tightening in labour market conditions through late 2025 and early 2026.

"The CommBank Wage Insights series slowed in February with the quarterly rate easing to 0.7 per cent. The annual rate was steady at 3.1 per cent," Allen said.

"Our data is not yet showing any response to the tightening in labour market conditions through late 2025 and into early 2026. But there are often lags from when the labour market tightens to wages growth picking up. With concerns over inflation given the rise in energy prices, stable wages growth will give the RBA some comfort over coming months."

Western Australia leads wage growth

Across the states and territories, annual wages growth was mixed in February.

Western Australia remained the strongest-performing jurisdiction, with wages up 3.8 per cent over the year, although this was down from 4.2 per cent in January. The Northern Territory recorded the slowest annual growth at 2.7 per cent, though this marked a slight lift from 2.6 per cent in January.

Wages growth in New South Wales and Victoria, the two largest states, was steady at 3.3 per cent and 3.1 per cent respectively. The ACT held at 3.5 per cent, while Queensland and South Australia both recorded a pick-up in annual growth to 3.4 per cent and 3.5 per cent. Tasmania saw a noticeable easing, with annual wages growth slowing to 2.8 per cent in February from 3.6 per cent in November.

Employment growth resilient but moderating

The CommBank Labour Insights series points to continued resilience in employment, with an estimated 21,000 jobs added in February, steady from January.

Employment growth has now returned to around pre-pandemic rates, well below the strength seen in 2022 and 2023. While CommBank's internal data tends to be less volatile than official figures, it closely tracks directional trends in the labour market.

Allen said the broader labour market backdrop remains tight but stable.

"In the second read for 2026 the CommBank Labour Insights series points to stable employment growth in the Australian economy.

"The ABS labour force survey has shown a steady unemployment rate of 4.1 per cent in December and January. At this rate we judge the labour market is tight. Our internal data does not point to a shift in trend in either direction at the moment, reinforcing relatively stable wages growth."