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Teachers, nurses and public sector workers keep wage growth steady

Wage growth steady at 3.4% as public sector boosts national pay rises in the September quarter.

19 November 2025

Childcare costs are proving persistent in Australia. Picture: Adobe.

Key takeaways

  • Latest ABS data shows wages rose 0.8% in the September quarter, unchanged from the previous quarter. 
  • Public sector wages grew 3.8 per cent over the year, outpacing the private sector. 
  • Western Australia and the ACT recorded the strongest annual wage growth at 4.0% and 3.9% respectively.

What is the Wage Price Index and how is it calculated?

The Australian Bureau of Statistics’ Wage Price Index (WPI) tracks changes in base wages across the economy and excludes wage changes that come via promotions, bonuses or job changes.

It compares pay for the same job over time, giving a clear view of wage trends across industries and occupations.

What’s driving wage growth?

Australia’s wage growth held steady in the September quarter, thanks largely to strong pay rises in the public sector. 

“This result should give the RBA some comfort that labour costs in the private sector are still easing,” said Ashwin Clarke, Senior Economist at CBA.

 “Wage growth remained solid in the quarter, underpinned by strength in the public sector from chunky gains in state government enterprise agreements.”

Trimmed mean inflation forecast November 2025

What’s the difference between the public and private sector?

The public sector includes government-employed roles, such as teachers, nurses and police, which are often covered by enterprise agreements and award wages. The private sector covers jobs in privately-owned businesses, where pay is usually set through individual agreements.

In the latest wage data, public sector pay rises were stronger, helping to hold up overall wage growth even as private sector wages showed signs of slowing.

Which industries and states are leading the way?

Enterprise agreements delivered the strongest annual growth, especially in public administration (+4.3 per cent), health care (+3.8 per cent) and education (+3.6 per cent).

Western Australia and the ACT led the states in annual wage growth, while the Northern Territory and Tasmania saw the slowest increases.

What does this mean for the Australian economy? 

Easing growth in the private sector suggests that pressure on prices may be ease from the uptick in the September quarter. That’s good news for the RBA, which is watching wage trends closely as it decides whether interest rates need to change.

CommBank’s internal data shows fewer people switching jobs and slower pay rises, which points to a gradually cooling job market. Economists expect wage growth to slow further over the next few quarters, helping inflation settle back into the Reserve Bank’s target range.

Read: Ashwin Clarke’s full analysis of the September quarter Wage Price Index data.

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The information presented is an extract of a Global Economic and Markets Research (GEMR) Economic Insights report. GEMR is a business unit of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945.



This extract provides only a summary of the named report. Please use the link provided to access the full report, and view all relevant disclosures, analyst certifications and the independence statement.



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