Public sector gains drive annual wage growth

New data released by the Australian Bureau of Statistics revealed that the national wage price index climbed 0.8% in the December quarter of 2025, maintaining a steady annual growth rate of 3.4%.

The slight uptick from the 3.3% recorded in September 2025 highlights a resilient labour market, even as the drivers of growth shift between sectors.

According to Michelle Marquardt, ABS head of prices statistics, the quarterly performance remained consistent with previous months, but the annual narrative is increasingly defined by a surging public sector.

For the fourth consecutive quarter, public sector wages outpaced private industry, posting a robust 4.0% annual increase—a significant jump from the 2.8% seen just one year ago.