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Australian Wage Growth Steady at 3.1% as Labor Market Stays Resilient, CBA Says

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Australia's wages rose 0.8% in the March quarter while employment added about 23,000 jobs, pointing to a steady but gradually cooling labor market with wage growth stabilizing near a new baseline, Commonwealth Bank of Australia (CBA) said in a Monday report.

Wage growth has remained steady at 3.1% annually, with recent CBA Wage insights indicating that Australia's labor market is beginning to stabilize after an extended period of strong performance.

"The CBA Wage insights series continues to show wages growth is steady heading into a period of higher inflation and inflation expectations period due to the Middle East conflict," said Belinda Allen, head of Australian economics at Commonwealth Bank.

The labor market remains relatively tight with unemployment at 4.3%, while wages growth has stabilized around 3.1% per year, and there is currently no clear response to tightening conditions, though some easing is expected as economic growth slows in 2026, Allen added.

Wage growth across Australia remains uneven by region, with Western Australia leading at 3.9% year-on-year in March, while Victoria and Tasmania lag behind amid a softening trend, and other states and territories recording moderate, steady growth.

The bank stated that its internal data does not indicate a clear shift in trends for wages or employment, pointing to a broadly stable outlook despite elevated external risks and inflation expectations.

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