In February, Australian employment rose by 116,500, compared to a slight increase of 500 jobs in the previous month, seasonally adjusted.
The unemployment rate decreased to 3.7%. The consensus was for the creation of 40,000 jobs and a slight decline in unemployment to 4%.
The labor market is still too strong to achieve the Reserve Bank's inflation target.
The upcoming monthly CPI on March 27 and retail sales data the following day will provide further insight into inflation trends.