Australia’s labour market lost momentum at the start of 2026, with employment growth easing notably in January compared to the strong gains seen at the end of last year.
According to the latest data updated on 19 February 2026, employment increased by 17.8K in January 2026, a sharp slowdown from the 65.2K jobs added in December 2025. The data suggest that while the labour market is still expanding, the pace of job creation has moderated significantly after a robust year-end surge.
The softer January figure may prompt investors and policymakers to watch upcoming labour reports more closely for signs of whether this is an early indication of a broader cooling trend in Australia’s employment cycle or a temporary pause after December’s outsized gains.
