The S&P/ASX 200 Index (ASX: XJO) was up 0.8% when the clock struck 11:30am AEDT.
In the minutes that followed, the Aussie benchmark index edged higher to be up 0.9%.
This followed on the heels of the Australian Bureau of Statistics (ABS)' release of the latest Aussie jobs data for the month of February.
As for the biggest three ASX 200 shares by market cap:
- Commonwealth Bank of Australia (ASX: CBA) shares are up 1.5%
- BHP Group Ltd (ASX: BHP) shares are down 0.8%
- CSL Ltd (ASX: CSL) shares are up 0.6%
Here's what ASX 200 investors are mulling over.
ASX 200 holds gains on strong labour data
The ASX 200 held onto its intraday gains after the ABS reported that Australia's seasonally adjusted unemployment rate remained steady in February at 4.1%.
Commenting on the latest jobs data, Bjorn Jarvis, ABS head of labour statistics, said, "With employment falling by 53,000 people and the number of unemployed falling by 11,000 people, the unemployment rate remained at 4.1%."
Jarvis added:
Fewer older workers returning to work in February contributed to the fall in employment this month, with lower levels of employment in the older age groups in February 2025 compared with 2024…
In contrast, we continue to see growth in employment for people aged between 15 and 54 over the year.
With good news for the Australian economy also good news for the ASX 200 today, investors look to be cheering the strong labour results and looking past the potential impacts on wage inflation.
"While the employment-to-population ratio fell 0.4 percentage points to 64.1% in February, it is still only 0.4 points below its historical high in December, and around where it was in June 2024," Jarvis said.
What are the implications of the latest Aussie jobs data?
On 19 February, ASX 200 investors witnessed the first interest rate cut from the Reserve Bank of Australia (RBA) since November 2020. That was when the Aussie central bank slashed rates to the historic 0.10% low in an effort to stoke 'stubbornly missing' inflation.
Ahem.
On 19 February, the RBA cut the official interest rate by 0.25% to the current 4.10%. And investors have been hoping to see the central bank ease rates again when the board meets in April.
While today's positive market reaction doesn't reflect this, ongoing strength in Australia's jobs market could lead to ongoing wage pressures, which could, in turn, reduce the odds of further rate cuts from the RBA.
Commenting on the relatively low Aussie unemployment levels before today's data was released, Josh Gilbert, market analyst at eToro, said:
Last month's RBA rate cut, a significant milestone after a long period under a cost-of-living crunch, may pull this month's unemployment figure lower – and almost certainly will have an impact on the March figures set to be released next month.
That reduction would be a welcome sign for jobseekers but a concern for economists, as a healthy jobs market could stoke the flames of inflation once more.
With Trump's tariffs casting a shadow over already certain markets, there is valid cause for concern here and signs that the unemployment rate is shrinking may take a consecutive rate cut off the table in April.
