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.
In contrast, the private sector saw a more modest rise of 3.4% over the same period.
Marquardt attributed the public sector's momentum to landmark state agreements that delivered multiple, sometimes backdated, pay rises throughout the year.
"Strong growth was driven by agreements that included backdated increases followed by further scheduled rises within the same calendar year," she noted.
The healthcare and social assistance industry emerged as the primary engine for national wage growth this quarter.
Significant movement was fueled by major Commonwealth-funded initiatives in aged care and early childhood education within the private sector, alongside scheduled enterprise agreement raises for frontline health workers in New South Wales.