Commonwealth Bank of Australia says Australia’s labour market is regaining momentum, with trend unemployment edging down to 4.1% and trend employment rising by 24,700 in January, keeping conditions “a little too tight” for inflation to return to the RBA’s target midpoint. CBA notes underemployment remains near a three-decade low at 5.9% and that a dip in participation has also helped lower unemployment. The bank argues the data is unlikely to reassure the RBA after February’s 25bp hike, and warns policy may need to tighten further, with wages growth holding at 3.4% annually and public-sector pay rising faster than private-sector wages.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Commonwealth Bank of Australia published the original content used to generate this news brief on February 19, 2026, and is solely responsible for the information contained therein.