Economic Dashboard

Australia

Real-time market intelligence, economic indicators and sector analysis

Updated 6 Jan 2026 2,788 Indicators

Market Overview

January 2026 Economic Summary

Economy resilient but uneven - strong assets mask household stress

Based on data through late 2025, Australia's economy presents a paradox: headline GDP grows 1.7% while equity markets delivered solid 6.8% capital growth, yet per capita living standards remain flat as households cut discretionary spending. The RBA has begun easing with the cash rate at 3.60%, but relief is slow to flow through. Population growth has normalised to 1.5%, easing some infrastructure pressure, while the housing supply deficit persists with prices up 6% despite affordability constraints. The labour market is cooling with unemployment at 4.3% but remains tight by historical standards. Inflation has moderated to 3.2% though services costs remain sticky. The divergence between asset holders (benefiting from property) and renters/mortgagees (facing elevated costs) defines the current economic landscape.

View by State: AUS | NSW | VIC | QLD | SA | WA | TAS | NT | ACT
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Market Snapshot As at 6 Jan 2026
3.60% RBA Cash Rate
9,009 All Ordinaries
8,698 S&P/ASX 200
4.78% 10yr Bond
USA
0.6716 AUD/USD
China
4.6800 AUD/CNY
UK
0.4970 AUD/GBP

Key Economic Indicators

Click to navigate
Indicator As At Units Latest -1yr -2yr -3yr -4yr -5yr
GDP 2025-Sep $m 687,757 (+2.1%) 673,927 (+0.8%) 668,453 (+2.1%) 654,444 (+6.1%) 616,735 (+4.7%) 589,183
CPI 2025-Oct Index 99.99 (+3.8%) 96.32 (+2.0%) 94.41 (+4.9%) 89.97 (+7.5%) 83.73 (+3.2%) 81.15
Population 2025-Jun Persons 27,614,411 (+1.5%) 27,194,286 (+2.0%) 26,659,922 (+2.5%) 26,018,721 (+1.3%) 25,685,412 (+0.1%) 25,649,248
Employment 2025-Nov Persons ('000) 14,656 (+1.3%) 14,473 (+1.9%) 14,207 (+3.0%) 13,787 (+4.9%) 13,148 (+3.2%) 12,745
Unemployment 2025-Nov % 4.32 (+38bps) 3.94 (+1bps) 3.93 (+41bps) 3.52 (-111bps) 4.63 (-218bps) 6.81
Job Ads 2025-Nov No 616,461 (-8.5%) 673,554 (-14.7%) 789,663 (-6.8%) 847,229 (+13.2%) 748,715 (+54.4%) 485,019
Household Spending 2025-Sep $m 232,015 (+5.1%) 220,838 (+2.8%) 214,921 (+6.6%) 201,614 (+28.4%) 156,982 (-0.4%) 157,628
House Prices 2025-Sep $000s 1,042 (+6.1%) 982 (+5.6%) 930 (+6.3%) 875 (+2.1%) 857 (+24.4%) 689
Attached Prices 2025-Sep $000s 710.00 (+5.0%) 676.00 (+5.0%) 644.00 (+6.1%) 607.00 (-2.9%) 625.00 (+7.6%) 581.00
Dwelling Approvals 2025-Oct No 191,311 (+11.6%) 171,361 (+1.8%) 168,347 (-12.8%) 193,019 (-16.4%) 230,989 (+27.1%) 181,769
Superannuation 2025-Sep $bn 4,466 (+9.4%) 4,082 (+13.4%) 3,599 (+9.7%) 3,281 (-4.4%) 3,434 (+18.5%) 2,897
ASX All Ords 2025-Dec Index 9,018 (+7.1%) 8,421 (+7.5%) 7,830 (+8.4%) 7,222 (-7.2%) 7,779 (+13.5%) 6,851

Infrastructure & Major Projects

Transforming Australia's future

Sample 16 Active

AI Generated Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

NSW

Hunter-Central Coast Renewable Energy Zone

The Hunter-Central Coast Renewable Energy Zone (REZ) is a major infrastructure initiative designed to facilitate the transition to renewable energy in the Hunter and Central Coast

$3.9B 2028 Construction
QLD

Gateway to Bruce Upgrade (G2BU)

A major infrastructure program delivered in stages to improve safety, increase capacity, and reduce congestion on the Gateway Motorway and Bruce Highway in north Brisbane and the M

$1.9B 2029 Detailed Design
QLD

UnityWater Infrastructure Program 2023-2027

The major water and wastewater infrastructure investment program, valued at $1.8 billion over 2023-2027, covers the Sunshine Coast and Moreton Bay regions. It includes key componen

$1.8B 2027 Construction
NSW

Central-West Orana REZ Transmission Network

Major transmission infrastructure project involving the design, construction, and operation of new 500kV and 330kV transmission lines to connect the Central-West Orana Renewable En

$5.5B 2028 Construction
VIC

McIvor Forest Estate

A large-scale residential community development located east of Bendigo, featuring more than 400 lots. The project is situated adjacent to the Greater Bendigo National Park and inc

Construction
VIC

Armstrong Creek Growth Area Development

The Armstrong Creek Growth Area is Victoria's largest contiguous urban growth zone, covering 2,500 hectares south of Geelong. The master-planned community will ultimately accommoda

$8.5B 2040 Construction
WA

East Wanneroo District Structure Plan

Long term state led structure plan guiding the urbanisation of more than 8,000 hectares in East Wanneroo over the next 50 years. The plan provides for about 50,000 new dwellings an

2075 Construction
SA

Tram Grade Separation Projects

South Australian Government project to remove three level crossings on the Glenelg tram line by raising the tram over Cross Road, Marion Road and Morphett Road. The existing South

$451M 2027 Construction
WA

Australian Renewable Energy Hub (AREH)

The Australian Renewable Energy Hub (AREH) is a large-scale renewable energy and green hydrogen project in the East Pilbara region of Western Australia, covering approximately 6,50

$22.0B 2038 Approved
QLD

Redcliffe Peninsula Foreshore Masterplan

14km coastal masterplan led by Moreton Bay City Council to revitalise the Redcliffe Peninsula foreshore from Clontarf to Scarborough. Includes new public spaces, waterfront parks,

$850M 2036 Planning
QLD

Queensland Energy and Jobs Plan

The Queensland Energy and Jobs Plan is a $62 billion+ statewide program to deliver publicly owned renewable energy generation, large-scale battery and pumped hydro storage, and the

$62.0B 2035 Construction
NSW

Barangaroo Precinct

A $9 billion world-class urban renewal project transforming a 22-hectare former container terminal into a thriving mixed-use precinct. Barangaroo South, featuring the International

$9.0B 2030 Proposed
NSW

Maitland Local Housing Strategy 2041

A comprehensive strategic planning framework adopted by Maitland City Council on 27 June 2023 and endorsed by the NSW Government on 9 September 2024. The strategy guides residentia

2041 Approved
QLD

Proposed Inland Rail Tunnel (Gowrie to Brisbane Port)

The 'Proposed Inland Rail Tunnel (Gowrie to Brisbane Port)' project name refers to the Brisbane end of the Inland Rail, encompassing the Gowrie to Helidon (including the Toowoomba

$7.2B 2031 Planning
QLD

Queensland Energy Roadmap Infrastructure

The Queensland Energy Roadmap 2025 is the State Government's strategic plan to deliver affordable, reliable, and sustainable energy. Replaces the former Energy and Jobs Plan, focus

$62.0B 2035 Planning
NSW

Irvine Street Gwynneville Precinct Planning Proposal

Planning Proposal lodged by Homes NSW to rezone the precinct for urban renewal, enabling up to 1,250 homes (3-6 storeys), with 50% dedicated to social and affordable housing, and n

$400M Under Assessment

GDP & Economic Output

GDP grows 1.7% but per capita output essentially flat as population absorbs gains
Australia's economy produced $2.73 trillion in annual output in the September quarter 2025, growing 1.7% year-on-year - below the 10-year average growth of 2.3%. Per capita GDP grew just 0.1%, essentially flat, as strong population growth absorbed most economic gains. Financial Services (+4.9%), Logistics (+6.9%) and Agriculture (+7.5%) significantly outperformed their historical averages, while Manufacturing (-1.9%) and Professional Services (-3.4%) contracted. The economy is moderating from post-pandemic peaks but avoiding recession.

Quarterly GDP reached $687.8 billion in September 2025, with annual output of $2.73 trillion - 1.7% higher than the prior year. This growth rate is below the 10-year average of 2.3%, indicating the economy has decelerated from post-pandemic peaks but remains positive. The services sector continues to drive expansion, with Financial Services growing 4.9% (nearly double its 10-year average of 2.6%) and Accommodation up 3.6% (above its 2.4% average). Logistics delivered exceptional growth of 6.9%, well above its historical 2.6% average, reflecting supply chain normalisation and increased freight activity.
Per capita GDP tells a more subdued story. Annual per capita output of $98,878 grew just 0.1% year-on-year - essentially flat and well below the 10-year average growth of 0.8%. This divergence between headline GDP (+1.7%) and per capita GDP (+0.1%) is stark: population growth of approximately 1.5% absorbed virtually all economic gains, leaving living standards stagnant. Per capita GDP has now been flat or negative for 10 of the last 13 quarters, a sustained period of per capita stagnation unusual in Australia's modern economic history.
Industry performance diverged significantly. Agriculture grew 7.5% (vs 10-year avg 4.1%), benefiting from improved seasonal conditions. Construction expanded 1.1%, above its modest 0.5% historical average. However, Manufacturing contracted 1.9% against a typical 0.0% growth rate, reflecting global industrial headwinds. Professional Services fell 3.4%, sharply below its usually robust 4.0% average growth, suggesting business investment in consulting and advisory has cooled. Mining output was flat (-0.1%), in line with mature production profiles. Overall, the economy demonstrates resilience through sectoral diversity, but productivity gains remain elusive.
Annual GDP
$2.73t
+1.7% YoY vs 10yr avg +2.3%
Slowing
GDP per Capita
$98,878
+0.1% YoY, essentially flat
Stagnant
Financial Services
+4.9%
Well above 10yr avg +2.6%
Rising
Professional Services
-3.4%
Well below 10yr avg +4.0%
Falling

Population & Migration

Population growth normalises to 1.5% as net migration moderates from record highs
Australia's population reached 27.61 million in September 2025, growing 1.5% year-on-year - exactly matching the 10-year average. Net overseas migration moderated sharply to 306,000 (-28.8% YoY), down from record highs, while natural increase rose 1.9% to 107,000. Western Australia leads state growth at +2.2%, while Tasmania lags at +0.2%. The normalisation from record 2022-23 migration is gradually rebalancing housing demand, though the accumulated dwelling shortfall persists.

Total population of 27.61 million represents growth of approximately 420,000 people over the year. The 1.5% annual growth rate matches the 10-year average precisely, marking a return to trend after the elevated growth rates of 2.3-2.5% during the post-pandemic migration surge. This normalisation reflects deliberate government policy to reduce net overseas migration from its record 538,000 peak in 2022-23. The current trajectory suggests population will reach 28 million by late 2026.
Net overseas migration of 306,000 fell 28.8% year-on-year, a significant deceleration from record levels but still substantial by historical standards. The migration slowdown is beginning to ease pressure on housing and infrastructure, though the accumulated shortfall of 200,000-300,000 dwellings remains. Natural population increase (births minus deaths) of 107,000 rose 1.9% year-on-year, with Victoria recording the strongest natural increase growth (+13.0%), suggesting fertility rates may be stabilising after years of decline.
State-level growth patterns show significant divergence. Western Australia leads at +2.2% annual growth, driven by resources sector opportunities and relative housing affordability. Queensland follows closely, continuing to attract interstate migrants from Sydney and Melbourne. Tasmania has the slowest growth at just +0.2%, reflecting net outward migration to the mainland. Victoria's natural increase growth of +13.0% contrasts sharply with Tasmania's -52.0% decline, highlighting demographic challenges in smaller states. For the housing market, moderating population growth should gradually reduce rental market tightness, though this will take years to fully flow through.
Total Population
27.61m
+1.5% YoY, matching 10yr avg
Stable
Net Overseas Migration
306k
-28.8% YoY, normalising from record
Falling
State Growth Leader
WA +2.2%
Resources and affordability driven
Rising
State Growth Laggard
TAS +0.2%
Net outward migration
Stagnant

Development Activity

Dwelling approvals surge 11.6% as attached housing leads recovery
Australia approved 191,311 dwellings in the year to September 2025, up 11.6% year-on-year - a strong turnaround from the -1.4% 10-year average. Commencements rose 11.9% while completions fell 2.0%, indicating a pipeline building but not yet delivering. Attached dwelling approvals jumped 28.9%, far outpacing houses at +1.7%. NT leads approval growth at +43.6%, while WA dominates commencements at +51.2% and TAS lags at -1.6%. The recovery is promising but completions remain well below the 240,000 annual target.

Annual dwelling approvals of 191,311 represent a strong 11.6% increase from the prior year, well above the 10-year average growth rate of -1.4%. This marks a notable reversal from the downturn of 2023-2024 when rising costs and interest rates suppressed new projects. House approvals grew 1.7% to 110,393, while attached dwelling approvals surged 28.9% to 80,918 - reflecting renewed focus on medium and high-density projects. At 6.9 approvals per 1,000 population, activity remains below the 10-year average of 7.9 per 1,000.
The construction pipeline shows positive momentum but delivery constraints persist. Dwelling commencements at 179,029 grew 11.9% annually, while completions at 173,232 fell 2.0% - reflecting the time lag between approvals and finished dwellings. State performance on commencements diverged dramatically: WA led at +51.2% growth, driven by strong population inflows, while ACT collapsed -53.8%. Completed houses at 113,149 were down 1.6%, with WA the standout at +16.3% while NT fell -21.4%. The gap between approvals and completions indicates supply growth is coming, though capacity constraints limit delivery speed.
State-level approval performance varied significantly. NT led approval growth at +43.6%, albeit from a low base. TAS was the only state with negative approval growth at -1.6%. SA dominated attached dwelling approvals with +67.8% growth, reflecting policy efforts to increase medium-density supply. Commercial development showed mixed results: office approvals grew 18.2% (ACT +227.5% extraordinary), industrial fell 5.4%, and retail rose 5.3%. Total commercial development value of $31.0 billion grew 3.8%, below the 7.6% 10-year average. The government's 1.2 million homes target requires sustained acceleration.
Dwelling Approvals
191,311
+11.6% YoY vs 10yr avg -1.4%
Rising
State Leader (Approvals)
NT +43.6%
WA +51.2% on commencements
Surging
Attached Approvals
+28.9%
SA +67.8% leads states
Surging
Completions
173,232
-2.0% YoY, delivery lagging
Falling

Housing Market

Capital city house prices rise 6.1% with NT leading at +19.9%
Capital city house prices reached $1.042 million in September 2025, up 6.1% year-on-year - above the 5.5% 10-year average. Regional houses grew faster at 9.3% to $703,000. NT leads capital city house price growth at +19.9%, driven by tight supply, while VIC lags at just +0.4% amid weakening demand. QLD dominates regional markets with +16.3% house and +17.0% attached price growth. Affordability remains stretched at 9.6x income for capital houses, with transaction volumes stable at 204,233 house sales (+1.6%).

Capital city median house prices of $1.042 million represent a 6.1% annual increase, maintaining the upward trajectory despite high interest rates and reduced borrowing capacity. Regional house prices at $703,000 grew 9.3% annually, continuing relative outperformance as affordability and lifestyle drive demand shifts. Attached dwelling prices in capitals at $710,000 rose 5.0%, while regional attached prices surged 8.3% to $651,000. The price-to-income multiple for capital city houses at 9.6x remains in 'severely unaffordable' territory, though marginally improved from 9.9x a year ago.
State-level price performance diverged significantly. NT led capital city house price growth at +19.9%, driven by tight supply and resources sector activity. QLD continued its strong run with attached prices up 17.0% in capitals and houses up 16.3% in regional areas. VIC lagged notably at just +0.4% house price growth, with weakening demand particularly in outer suburban areas. SA's regional attached prices surged 44.9%, reflecting catch-up dynamics in previously undervalued markets. TAS regional attached prices were flat at 0.0%, indicating market exhaustion after strong pandemic-era gains.
Transaction volumes provide insight into market depth. Capital city house sales of 204,233 rose 1.6% year-on-year, with NT recording the strongest volume growth at +59.7%. QLD was the weakest for capital house sales at -5.8%. Regional house volumes grew 3.0% to 144,068 transactions. Attached sales in capitals fell 3.9% to 151,495, suggesting buyer preference shifting toward houses where land appreciates. Market commentary notes Sydney and Melbourne showing early signs of price weakness, fitting with declining auction clearance rates and moderating migration.
House Price (Capitals)
$1.042m
+6.1% YoY vs 10yr avg +5.5%
Rising
State Leader
NT +19.9%
QLD +16.3% regional leader
Surging
State Laggard
VIC +0.4%
Demand weakness, oversupply
Stagnant
Price/Income Multiple
9.6x
Severely unaffordable, slight easing
Falling

Housing Finance

Housing lending grows 6.8% with investor activity surging 19%
Total housing finance reached $124.8 billion in September 2025, up 6.8% year-on-year - well above the 2.2% 10-year average. Owner-occupier lending grew a modest 1.9% to $84.7 billion, while investor lending surged 19.0% to $40.1 billion. NT leads lending growth at +37.0% with extraordinary investor growth of +117%, while WA lags at -0.8%. The surge in investor activity is being monitored by APRA, with potential for macroprudential intervention if growth continues.

Total housing finance of $124.8 billion grew 6.8% over the year, significantly outpacing the 10-year average growth of 2.2%. This strength persists despite mortgage rates remaining elevated following the RBA tightening cycle. Owner-occupier lending of $84.7 billion grew 1.9%, close to its 0.5% historical average. The composition shift toward investors is notable, with investor lending now comprising approximately 32% of new finance, up from around 28% a year ago.
Investor lending growth of 19.0% to $40.1 billion significantly exceeds the 9.4% 10-year average, raising the prospect of macroprudential intervention. State-level investor growth varies dramatically: NT recorded extraordinary +117.0% growth, reflecting tight rental markets and strong yields, while WA investors grew a more modest 5.8%. Monthly growth in lending to property investors remains very strong, and APRA is monitoring the trend closely. Strong rental yields driven by sub-1.5% vacancy rates are attracting investors despite high borrowing costs.
State-level lending patterns diverged significantly. NT led total lending growth at +37.0%, driven by both owner-occupier (+18.2%) and investor (+117.0%) activity. QLD and SA also recorded solid growth. WA was the only state to record negative total lending growth at -0.8%, with owner-occupier lending down 3.2%, possibly reflecting affordability improvements moderating urgency. The overall picture suggests housing credit growth remains robust, supporting house prices despite the interest rate environment and potentially requiring policy attention.
Total Housing Finance
$124.8bn
+6.8% YoY vs 10yr avg +2.2%
Rising
Investor Lending
+19.0%
Far above 10yr avg +9.4%
Surging
State Leader
NT +37.0%
Investor +117% extraordinary
Surging
State Laggard
WA -0.8%
Only state with negative growth
Falling

Monetary & Financial Conditions

Cash rate at 3.60% as RBA signals potential rate cuts ahead
The RBA cash rate stands at 3.60% in December 2025, down from 4.35% a year earlier as the central bank began its easing cycle. Owner-occupier variable mortgage rates have fallen to 6.05%, while investor rates sit at 6.38%. Bond markets are pricing further rate cuts, with the 2-year yield at 3.67% and 10-year at 4.42%. Small business lending rates remain elevated at 8.25%, continuing to weigh on business investment.

The RBA cash rate of 3.60% represents a 17.2% decline from the prior year's 4.35%, marking the beginning of a monetary policy easing cycle after one of the most aggressive tightening periods in Australian history. The transmission to mortgage rates has been partial: owner-occupier variable rates at 6.05% are down 14.4% year-on-year, providing meaningful relief to households after two years of rising repayments. Investor rates at 6.38% show similar declines. Fixed rate mortgages at 5.56% (3-year) offer an alternative for borrowers seeking certainty, though this locks in rates that may prove elevated if easing continues.
Bond market pricing reveals expectations for the rate trajectory. The 2-year yield of 3.67% sits below the cash rate, indicating markets expect further cuts over the next 12-24 months. The 10-year yield at 4.42% suggests a gradual normalisation of the yield curve. The current rate environment, while lower than peak, continues to squeeze household disposable income with mortgage interest payments consuming a significant share of budgets. Major bank economists suggest the RBA may continue easing, with some forecasting rates could fall further in early 2026.
For businesses, the rate environment remains challenging. Small business lending rates at 8.25% have fallen 8.3% year-on-year but remain well above the decade average of 6.8%. This continues to dampen investment appetite and working capital expansion. Looking forward, the RBA faces a delicate balancing act: provide sufficient monetary support to address slowing growth and rising unemployment, while ensuring inflation returns sustainably to the 2-3% target band. Current market pricing suggests additional rate cuts in 2026, though the pace will depend on labour market resilience and inflation trajectory.
RBA Cash Rate
3.60%
-17.2% YoY, easing cycle begun
Falling
Owner-Occ Variable Rate
6.05%
-14.4% YoY, mortgage relief
Falling
10-Year Bond Yield
4.42%
-2.6% YoY
Falling
Small Business Rate
8.25%
-8.3% YoY, still elevated
Falling

FX Rates & Commodities

Australian dollar stable near US$0.65 as commodity prices recover
The Australian dollar traded at US$0.65 in November 2025, unchanged from a year earlier and near the 10-year average of US$0.656. The Trade Weighted Index at 61.2 sits at its decade average, suggesting fair valuation. Against the yen, the AUD strengthened 4.4% to 102.05 - well above the 10-year average - reflecting the Bank of Japan's gradual policy normalisation. Commodity prices in AUD terms rose 4.1% year-on-year to 94.09, recovering from earlier weakness.

The AUD/USD rate of 0.65 reflects balanced forces: supportive commodity prices, narrowing interest rate differentials with the US, and China's uneven economic recovery. The currency has traded in a relatively tight range through 2025, lacking a clear directional driver. The Trade Weighted Index at 61.2 sits almost exactly at its decade average, indicating the currency is fairly valued on a broad basket basis. Against the euro, the AUD weakened to 0.56 - some 7.6% below the decade average - as the ECB's higher-for-longer stance supported the single currency.
Commodity prices provide mixed support. The RBA Commodity Price Index in AUD terms at 94.09 fell 4.1% year-on-year but remains significant for export earnings. Mining commodities have stabilised after earlier weakness, with iron ore in the US$100-110/t range following China's steel production adjustments. Rural commodities at 112.79 rose 8.9% annually and remain the strongest component at 3.4% above the 10-year average, benefiting from livestock price strength and grain demand.
The yen cross stands out with AUD/JPY at 102.05 - up 4.4% year-on-year and 6.2% above the decade average. This reflects the Bank of Japan's gradual normalisation from ultra-loose policy. For Australian exporters to Japan - particularly beef, resources and education - this provides margin support. The Chinese yuan cross at 4.62 sits 1.5% below decade averages as China's property sector weakness weighs on the RMB. Looking forward, the AUD trajectory will depend on relative monetary policy paths, commodity demand, and risk sentiment.
AUD/USD
US$0.65
Unchanged YoY, near 10yr avg
Stable
AUD/JPY
102.05
+4.4% YoY, 6.2% above 10yr avg
Rising
Commodity Index (AUD)
94.09
-4.1% YoY, recovering
Falling
Rural Commodities
112.79
+8.9% YoY, strongest sector
Rising

Employment

Unemployment rises to 4.3% with SA leading jobs growth at +4.6%
The unemployment rate reached 4.32% in November 2025, up from 3.94% a year earlier as the labour market gradually cools. Total employment grew 1.3% to 14.66 million, below the 2.1% 10-year average. SA leads employment growth at +4.6%, while NT lags at -1.3%. The number of unemployed rose 11.7% to 662,000, with ACT recording the largest unemployment rate increase (+53.5%). Despite the cooling, unemployment remains well below the 5.2% 10-year average, indicating a historically tight market.

Total employment of 14.66 million represents growth of 1.3% year-on-year - below the 10-year average of 2.1%, reflecting moderation as the economy adjusts to higher interest rates. Full-time employment grew just 0.5% to 10.08 million, indicating the softening is concentrated in permanent positions. State-level employment growth diverged significantly: SA led at +4.6%, followed by NSW, while NT was the only state to record negative employment growth at -1.3%. The labour force at 15.32 million grew 1.7%, with participation remaining near record highs at around 66.8%.
The unemployment rate of 4.32% represents a 9.8% increase from the prior year's 3.94%, marking a clear shift from the extreme tightness of 2022-2023. State-level unemployment changes varied dramatically: ACT saw unemployment rise 53.5%, while NSW recorded a 2.5% decline. The number of unemployed persons at 662,000 has risen 11.7% year-on-year. Context is important: the current rate remains well below the 10-year average of 5.2% and pre-pandemic norms of 5.0-5.5%.
Looking forward, the unemployment rate is expected to continue drifting higher toward 4.5% by mid-2026, reflecting the lagged impact of monetary policy and slowing economic growth. SA's strong employment performance (+4.6%) contrasts with ACT (-1.7% for full-time jobs), suggesting divergent economic conditions across states. Labour hoarding by businesses facing skills shortages provides some buffer against sharper deterioration. Job vacancies have retreated from peaks but remain elevated, suggesting underlying demand for workers persists despite headline cooling.
Unemployment Rate
4.32%
+9.8% YoY, still below 10yr avg 5.2%
Rising
Total Employment
14.66m
+1.3% YoY vs 10yr avg +2.1%
Slowing
State Leader
SA +4.6%
Strongest employment growth
Rising
State Laggard
NT -1.3%
Only state with job losses
Falling

Job Advertisements

Job ads fall 8.5% with SA best at -0.7% and ACT worst at -25.1%
Job advertisements totalled 616,461 in November 2025, down 8.5% year-on-year but sitting exactly at the 10-year average. SA showed the strongest resilience at just -0.7% decline, while ACT was weakest at -25.1%. Professional ads fell 8.2% to 177,027, while industrial ads proved more resilient at -4.9% to 125,241. The decline signals labour market cooling from peak tightness but remaining healthy by historical standards. Sales ads declined 7.0% to 29,955 as retailers consolidate headcount.

Total job advertisements of 616,461 represent an 8.5% decline from the prior year - below the 10-year average growth of 3.8%. This indicates labour demand has normalised from the extraordinary post-pandemic hiring surge when ads peaked around 730,000 in mid-2024. The current level sits almost exactly at the 10-year average of 618,886, representing a return to normal rather than collapse. As a leading indicator of employment, this trajectory suggests unemployment should drift modestly higher over the next 3-6 months.
State-level job ad performance diverged significantly. SA showed remarkable resilience with just a -0.7% decline, reflecting the state's relative economic strength and government investment. By contrast, ACT recorded the sharpest decline at -25.1%, driven by public sector hiring freezes and reduced government consulting demand. NT and TAS also recorded significant declines around -20%, while NSW (-8.5%) and VIC (-9.2%) tracked close to the national average. Industrial ads led by SA at +6.0% while professional ads saw uniform declines.
Category composition reveals sectoral divergence. Professional job advertisements at 177,027 fell 8.2% year-on-year, reflecting reduced white-collar hiring across finance, technology and professional services. Technology sector layoffs and public sector hiring freezes have particularly impacted demand. Industrial and trades ads at 125,241 remain the relative outperformer - down 4.9% annually but still 7.3% above the decade average, supported by infrastructure investment and manufacturing activity. Sales ads at 29,955 declined 7.0% with TAS showing unusual strength at +1.5%.
Total Job Ads
616,461
-8.5% YoY, at 10yr avg
Falling
State Leader
SA -0.7%
Industrial +6.0% driving resilience
Stable
State Laggard
ACT -25.1%
Public sector freeze
Falling
Industrial Ads
125,241
-4.9% but 7.3% above avg
Elevated

Wages & Earnings

WPI grows 3.4% with WA leading at +4.0% as real wages recover
The Wage Price Index rose 3.4% year-on-year in September 2025, above the 2.6% 10-year average. Full-time weekly earnings reached $2,083 (+4.5%), translating to $107,385 annually. WA leads WPI growth at +4.0% driven by resources sector demand, while NT lags at +3.0%. With CPI at 3.2%, real wages have returned to growth for the first time since early 2022. SA leads earnings growth at +6.6%, reflecting catch-up from a lower base.

The Wage Price Index at 158.3 grew 3.4% year-on-year - above the decade average of 2.6%, reflecting a tight labour market that has delivered sustained wage increases. The moderation from peak growth of 4.0%+ in 2023 indicates the labour market is cooling but remains supportive of wages. State-level WPI growth shows WA leading at +4.0%, supported by strong resources sector demand, while NT lags at +3.0%. Average full-time weekly earnings reached $2,083, up 4.5% annually, equating to approximately $107,385 per year.
The wage-inflation dynamic has shifted favourably for workers. With headline CPI growth moderating to 3.2%, the 3.4% wage growth delivers positive real wage gains for the first time since early 2022. This reverses the significant real wage cuts households experienced during 2022-2023. State earnings growth varies significantly: SA leads at +6.6% for weekly earnings, reflecting catch-up from a lower base, while WA (+3.5%) shows more modest growth despite leading on WPI. The wage share of national income has risen to 54.2%, indicating workers are capturing a greater proportion of output.
Sector-level wage growth shows variation. Public sector wages continue growing at the inflation rate following Fair Work Commission decisions, while private sector growth varies by industry. NT's lagging +3.0% WPI growth suggests the resources boom is not delivering as strong wage outcomes as in WA. Professional services and technology see above-average growth despite cooling hiring. Looking forward, wage growth will likely remain in the 3-4% range, supported by the Fair Work Commission's annual wage review and ongoing skills shortages.
Wage Price Index
158.3
+3.4% YoY vs 10yr avg +2.6%
Rising
State Leader (WPI)
WA +4.0%
Resources sector demand
Rising
State Leader (Earnings)
SA +6.6%
Catch-up from lower base
Rising
Real Wage Growth
+0.2%
First positive since 2022
Recovering

Household Consumption

Household consumption grows 5.7% with QLD leading at +3.7% per capita
Total household consumption reached $372.7 billion in September 2025, up 5.7% year-on-year - above the 4.9% 10-year average. Per capita consumption grew 4.1% to $13,497 quarterly, with QLD leading at +1.9% and VIC lagging at +0.3%. Health consumption surged 8.2%, power jumped 28.4% from energy price impacts, and cafes/restaurants rose 6.4%. QLD also leads power consumption growth at an extraordinary +247.9%, while NT contracted -7.8%. The composition reveals essential spending dominating growth.

Total household consumption of $372.7 billion represents 5.7% annual growth, exceeding the decade average of 4.9%. Per capita consumption of $13,497 quarterly grew 4.1% - above the 10-year average of 3.3%. State-level per capita growth shows QLD leading at +1.9%, reflecting strong population growth diluted by rising spending, while VIC lags at just +0.3%, suggesting spending weakness despite modest population growth. SA and ACT also show subdued per capita consumption growth around 1.0-1.8%.
Essential categories dominate consumption growth with significant state variation. Health consumption at $27.5 billion grew 8.2% nationally, with VIC leading at +5.5% and ACT lagging at +3.2%. Power consumption surged 28.4% to $9.1 billion nationally - QLD recorded extraordinary +247.9% growth reflecting energy price volatility and measurement timing, while NT contracted -7.8%. Transport consumption grew 3.8% to $12.6 billion, with NT leading at +7.0%. Rent on dwellings rose 6.5% to $82.8 billion.
Discretionary spending shows resilience with some state divergence. Recreation consumption at $38.0 billion grew 5.1% nationally, with QLD leading at +3.8% and ACT weakest at +1.8%. Cafes and restaurants consumption rose 6.4% to $31.7 billion, QLD again leading at +3.2% while ACT was flat at -0.1%. Alcohol consumption rose just 2.2% nationally with NT showing more resilience at +1.6% while QLD contracted -2.4%. Looking forward, consumption growth should moderate as savings buffers deplete, though real wage gains provide offset.
Total Consumption
$372.7bn
+5.7% YoY vs 10yr avg +4.9%
Rising
State Leader (Per Capita)
QLD +1.9%
VIC lagging at +0.3%
Rising
Health Consumption
+8.2%
VIC +5.5% leads states
Rising
Power Consumption
+28.4%
QLD +248%, NT -7.8%
Volatile

Household Spending

Household spending grows 5.1% as essential costs rise and discretionary falls
Household spending reached $232.0 billion in the September quarter 2025, growing 5.1% year-on-year - matching the 10-year average. The composition reveals stress with essential categories driving increases while some discretionary spending contracts. Health spending surged 8.1% to $27.4 billion and transport rose 4.1% to $38.7 billion. Food spending increased 6.4% to $36.8 billion. In contrast, alcohol spending collapsed 18.0% to $8.7 billion - an extraordinary decline signaling budget pressure.

Total household spending of $232.0 billion grew 5.1% year-on-year, exactly matching the decade average growth rate. This headline stability masks significant compositional shifts as households reallocate budgets from discretionary to essential categories. Per capita spending of $8,401 quarterly rose 3.9% annually, above the 10-year average of 3.5%. Annual per capita spending reached $33,424, providing a benchmark for household consumption patterns.
Essential categories dominate spending growth. Health spending at $27.4 billion grew 8.1% - 2 percentage points above the decade average of 6.1% - driven by rising healthcare costs, insurance premiums, and out-of-pocket expenses. Transport spending of $38.7 billion rose 4.1%, reflecting elevated fuel costs and vehicle price inflation. Food spending at $36.8 billion increased 6.4%, exceeding the 5.1% decade average as grocery inflation remains sticky. Furnishings grew more modestly at 4.0% and clothing at 3.3%, both below their historical averages.
The alcohol spending decline stands out dramatically. At $8.7 billion, alcohol spending has fallen 18.0% year-on-year - compared to decade average growth of just 0.2%. This extraordinary contraction signals households are aggressively cutting discretionary consumption where possible. Recreation spending at $39.9 billion grew 7.5%, suggesting experiences remain prioritised, while hotels and restaurants at $29.2 billion rose 6.1%. Nearly half of Australians report discretionary spending is down compared with last year, indicating cautious approaches to non-essential outlays. Looking forward, moderating inflation and eventual interest rate relief should allow discretionary spending to recover.
Total Spending
$232.0bn
+5.1% YoY, matching 10yr avg
Stable
Health Spending
$27.4bn
+8.1% YoY vs 10yr avg +6.1%
Rising
Transport Spending
$38.7bn
+4.1% YoY
Rising
Alcohol Spending
$8.7bn
-18.0% YoY - discretionary cuts
Falling

Inflation & Cost of Living

CPI moderates to 3.2% with QLD highest at +4.7% and SA lowest at +2.4%
Headline CPI rose 3.2% year-on-year in September 2025, moderating toward the RBA's 2-3% target but remaining above it. QLD leads state inflation at +4.7%, driven by housing costs (+13.2%), while SA has the lowest at +2.4%. Housing CPI nationally rose 4.7%, with health at +4.2% and education +5.3% outpacing headline. Transport CPI grew just 0.8% as fuel prices retreated. The divergence between states and between goods vs services inflation defines the cost-of-living landscape.

The Consumer Price Index (All Groups) reached 143.6 in September 2025, representing 3.2% annual growth - above the RBA's 2-3% target but down significantly from the 7%+ peaks of 2022-2023. State-level inflation diverged notably: QLD leads at +4.7%, driven by extraordinary housing CPI growth of +13.2%, while SA recorded the lowest at +2.4%. VIC's housing CPI growth of just +1.3% contrasts sharply with QLD, reflecting different rental and mortgage dynamics. Services inflation remains sticky at 3.6-3.8% monthly.
Category-level analysis reveals divergent inflation experiences. Housing CPI at 157.2 grew 4.7% nationally, with QLD's +13.2% versus VIC's +1.3% illustrating regional variation. Health CPI rose 4.2% with ACT highest at +4.8% and NT lowest at +2.8%. Education CPI grew 5.3%, ACT leading at +6.0%. Food CPI at 139.0 rose 3.1%, with TAS highest at +4.2%. Transport CPI grew just 0.8% as fuel prices retreated - NT recorded +1.8% while QLD saw -0.7%. Communication CPI rose 1.8%, remaining below overall inflation.
The bifurcated inflation dynamic creates vastly different cost-of-living experiences. QLD residents face significantly higher inflation through housing costs, while VIC households experience more modest price pressure. Renters and recent mortgage holders face above-average inflation, while those with paid-off homes experience effective deflation in goods categories. Looking forward, underlying inflation is expected to return to the 2-3% target band by late 2026. Electricity prices are expected to fall around 10% nationally due to government rebates.
Headline CPI
143.6
+3.2% YoY, moderating
Falling
State Highest
QLD +4.7%
Housing +13.2% driving
Elevated
State Lowest
SA +2.4%
Within RBA target band
Stable
Housing CPI
+4.7%
QLD +13.2%, VIC +1.3%
Elevated

Equities & Superannuation

ASX 200 recovers to 8,714 as markets close 2025 with 6.8% annual gain
Australian equities recovered in December 2025, with the ASX 200 closing the year at 8,714 points - up 6.8% year-on-year, above the 10-year average annual capital growth of 5.6%. The All Ordinaries reached 9,018 points, returning 6.9% capital growth annually. Total market capitalisation expanded to $3.27 trillion. The superannuation pool grew 9.4% to $4.47 trillion - representing one of the world's largest retirement savings pools at approximately $162,000 per Australian.

The ASX 200 closed at 8,714 points as at December 2025, representing 6.8% capital growth over the prior year - above the 10-year average annual capital growth of 5.6%. The All Ordinaries index at 9,018 points delivered 6.9% annual capital growth. Markets recovered from November lows (ASX 200: 8,614, All Ords: 8,919) to finish the year strongly. Total market capitalisation reached $3.27 trillion, up from $3.01 trillion in December 2024. Despite volatility through the year, markets delivered solid returns above historical averages.
Australia's superannuation pool reached $4.47 trillion in September 2025, growing 9.4% year-on-year - above the decade average growth rate of 8.6%. The Superannuation Performance Index rose 10.2% over the year. With superannuation now equivalent to approximately 160% of GDP, the pool increasingly influences asset prices, corporate governance and capital allocation decisions across the Australian economy. For household wealth, the combination of equity exposure through super and direct holdings provides a meaningful wealth effect, even as index returns moderate.
Looking forward, Australian equity returns face cross-currents. On the positive side, anticipated RBA rate cuts should support valuations, the resources sector benefits from energy transition demand, and the banking sector enjoys healthy net interest margins. Market analysts report solid returns for the year, with diversified portfolios delivering strong performance. However, slowing Chinese growth poses risks for materials stocks, and elevated global interest rates compress equity risk premiums. The superannuation sector's continued growth - now approaching $5 trillion - ensures persistent demand for Australian equities and bonds, while also driving increased allocation to international and alternative assets as funds diversify.
ASX 200
8,714
+6.8% YoY capital growth vs 10yr avg +5.6%
Rising
All Ordinaries
9,018
+6.9% YoY capital growth
Rising
Superannuation Assets
$4.47t
+9.4% YoY, 10yr avg +8.6%
Rising
Market Capitalisation
$3.27t
+8.6% YoY
Rising

Retail Trade

Supermarket turnover dominates at $145.6B as non-discretionary spending outpaces discretionary
Australia's retail landscape reflects entrenched consumer priorities toward essential spending amid cost-of-living pressures, with supermarket and grocery turnover reaching $145.6 billion annually through June 2025—up 137.3% from the September 2006 baseline of $61.3 billion. This non-discretionary category's dominance underscores households' focus on food and basic necessities even as discretionary budgets compress. The "Other Retail" category totaled $70.1 billion (up 160.6% from baseline), while electrical and electronics reached $26.2 billion (up 66.5%) and specialised food stores recorded $13.0 billion (up 79.9%). The divergent growth rates reveal sector-specific dynamics: supermarkets benefit from population growth and food inflation that mechanically lifts nominal turnover; electrical/electronics faces online competition and price deflation that constrains dollar growth despite volume increases; and specialised food captures premiumization trends as consumers trade up to artisan bakeries, butchers, and organic retailers. Retail patterns demonstrate the squeeze on household budgets—necessities claim growing wallet share while discretionary categories face volume pressure. The data encompasses both in-store and online sales, with e-commerce penetration varying dramatically by category and reshaping traditional retail economics.

Supermarket and grocery turnover reached $145.6 billion on an annual rolling basis through June 2025, representing 137.3% growth from the September 2006 baseline of $61.3 billion. This substantial nominal expansion stems from three reinforcing factors: population growth of approximately 30% over the period mechanically increased the customer base; food price inflation substantially outpaced general CPI, with fresh produce, meat, and packaged goods all experiencing multi-decade price increases; and consumption patterns shifted toward eating at home rather than dining out as restaurant prices surged and household budgets tightened. The absolute turnover figure of $145.6 billion translates to roughly $5,300 per capita annually in supermarket spending, highlighting groceries' substantial claim on household budgets. Market concentration in this sector proves extreme, with Woolworths and Coles commanding approximately 65-70% combined market share, followed by Aldi, IGA, and smaller independent operators. This duopoly structure generates ongoing political and regulatory scrutiny around pricing power, supplier treatment, and consumer choice—particularly during periods of elevated food inflation when margin expansion attracts criticism. The pandemic accelerated online grocery adoption, with click-and-collect and home delivery services now comprising an estimated 10-15% of supermarket sales compared to minimal penetration pre-2020. However, the high costs of online fulfillment—picking, packing, refrigerated transport—squeeze margins and raise questions about long-term profitability of digital grocery channels at current pricing.
Electrical and electronics retail turnover totaled $26.2 billion annually through June 2025, up 66.5% from the September 2006 baseline of $15.7 billion—the weakest growth rate among major retail categories despite technology's increasing importance in daily life. This subdued nominal growth masks dramatic volume expansion: Australian households purchased vastly more devices, appliances, and electronics over the period, but unit prices declined sharply due to manufacturing efficiency gains, technology commoditization, and intense online competition. Categories like televisions, computers, and smartphones saw 50-80% price deflation over the past two decades even as specifications improved dramatically, creating a headwind for dollar turnover growth. The "Other Retail" category reached $70.1 billion, up 160.6% from the $26.9 billion baseline—a broad bucket encompassing clothing, footwear, furniture, homewares, sporting goods, and various specialty retail segments. This category's strong nominal growth reflects both population expansion and premiumization trends in segments like activewear, furniture, and homeware where consumers traded up to higher-quality products. However, the aggregate figure conceals sharp divergence: fast fashion and discretionary apparel faced margin pressure and market share loss to online competitors, while furniture and homewares benefited from pandemic-era nesting behaviors and sustained housing market activity that drove demand for furnishings and renovations. Specialised food retail—artisan bakeries, butchers, delis, organic grocers—recorded $13.0 billion in turnover, up 79.9% from $7.2 billion, capturing the premiumization of food consumption as higher-income households sought quality, provenance, and specialty products beyond supermarket offerings.
The retail sector's compositional dynamics reveal broader shifts in consumer behavior, household budget allocation, and competitive landscapes. Supermarkets' commanding 60% share of the captured retail categories ($145.6B of ~$255B total) reflects food's non-discretionary status and limited substitution possibilities—households must eat regardless of economic conditions, providing grocery retailers with defensive earnings characteristics. The weak electrical/electronics growth despite technological proliferation demonstrates how price deflation can overwhelm volume gains, creating challenging economics for bricks-and-mortar retailers competing against online pure-plays with lower overhead structures. Amazon's entry into the Australian market intensified this pressure, forcing incumbent retailers to match prices while bearing higher cost structures—Officeworks, JB Hi-Fi, and Harvey Norman all faced margin compression as they invested in online capabilities and price competitiveness. The rise of specialised food retail signals income polarization: higher-earning households increased spending on premium food experiences and artisan products, supporting independent retailers and niche chains, while cost-conscious households concentrated spending at discount supermarkets and focused on value. Per-capita retail spending growth substantially lagged income growth over the period, indicating declining retail share of household budgets as housing costs, utilities, and services claimed increasing portions of disposable income. Looking forward, retail faces persistent headwinds from elevated mortgage servicing costs that suppress discretionary spending, ongoing e-commerce penetration that advantages low-cost operators, and potential consumption weakness if labor market softening reduces income growth. The essentials-focused spending pattern appears entrenched, with supermarkets likely maintaining dominance while discretionary categories face volume pressure absent meaningful real income growth that restores household purchasing power.
Supermarket and grocery turnover
$145.6B annually
+137.3% from 2006 baseline, dominates retail landscape
Strong
Electrical/electronics growth
+66.5% since 2006
Weakest growth despite tech proliferation—price deflation overwhelms volume gains
Constrained
Other retail category
$70.1B annually
+160.6% from baseline, but conceals divergence between winners and losers
Mixed
Specialised food retail
$13.0B annually
+79.9% from baseline, premiumization trend among higher-income households
Rising
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