Australian public sector wages grow $266B

Public sector jobs rose 2.3% between June 2025 and June 2026, while total wages increased 6.6% according to figures released by the Australian Bureau of Statistics.

This annual increase in jobs was down from previous periods, marking the slowest growth rate since the onset of the COVID-19 pandemic in 2019-20.

"Wages paid to public sector employees totalled $266.1 billion across all levels of government in 2025-26," said Australian Bureau of Statistics Head of Labour Statistics Sean Crick.

The moderation in wage growth reflected slowing expansion in Commonwealth and local government jobs, while state and territory governments faced strong demand for health and education services.

Health care and social assistance led the sector, with jobs rising by 29,700 to reach 669,800 workers, alongside an 8.5% increase in wages paid to $70.9 billion.

Public administration, safety, education, and health care industries combined account for nearly 90 per cent of all public sector jobs and wages across the country.

Education and training employment increased by 17,400 positions to 790,800 workers, while public administration and safety jobs grew by 4,600 to 883,300 roles.