<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Reserve Bank has raised the alarm over a </span><a href="https://www.9news.com.au/national/rba-interest-rates-the-danger-on-the-flipside-of-the-rbas-rate-hike/0f884e4a-cc94-45b9-8ff4-98567d0cd712" rel="" target="_blank" title="potential recession"><span>potential recession</span></a><span> in Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As the country battles </span><a href="https://www.9news.com.au/national/rba-interest-rates-the-reserve-bank-has-hiked-interest-rates-how-much-will-this-cost-me/230033ae-0a25-489c-bafb-7d5d7505cade" rel="" target="_blank" title="consecutive cash rate hikes"><span>consecutive cash rate hikes</span></a><span>, job losses, </span><a href="https://www.9news.com.au/petrol-prices" rel="" target="_blank" title="soaring fuel prices"><span>soaring fuel prices</span></a><span> and volatility from </span><a href="https://www.9news.com.au/world/us-israel-iran-war-update-australia-and-dozens-of-others-condemn-iran-over-attacks-on-neighbours-critical-shipping-closure/5440f1eb-2a2a-431c-bb18-55e90e1dea19" rel="" target="_blank" title="the war against Iran"><span>the war against Iran</span></a><span>, experts warn the data paints a grim picture for the economy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The latest </span><a href="https://www.9news.com.au/employment/2" rel="" target="_blank" title="employment figures"><span>employment figures</span></a><span> have now stoked fresh fears that Australia's economy could be shocked into a recession for the second time in six years.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/petrol-prices-australia-how-fuel-costs-are-impacting-caravan-drivers/bb380c05-4c26-4895-bae2-4da8a6869682" rel="" target="_blank" title="Couple's $800 headache at the bowser as price hikes hurt caravan owners"><strong><span>Couple's $800 headache at the bowser as price hikes hurt caravan owners</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-march-19-donald-trump-officials-should-must-make-his-decisions-as-successful-as-possible-jd-vance-says-irans-new-supreme-leader-issues-a-rare-statement/db9709f9-041a-4e5d-a484-cec456ce469d" target="_blank"><strong><span>Iran pledges to hit back over gas field attack</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The RBA flagged that a domestic recession could be a necessary evil to drive inflation down.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We don't want to have a recession, but if it's hard to get inflation down, then we're going to have to deal with that, possibly," RBA governor Michele Bullock said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/how-close-is-australia-to-recession-warning-signs-explained/f6c2e2a9-dc84-4f1c-8de3-d01c8e782eaa" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Treasurer Jim Chalmers, however, flatly denied this was a possibility.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"No, that's not something that we're anticipating or forecasting or expecting," Chalmers told ABC's 730 program.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Inflation remains the biggest threat to the Australian economy and this has been compounded by a deflating job market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Fresh job figures revealed the unemployment rate rose to 4.3 per cent in February after 35,000 people left the workforce.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australian Bureau of Statistics (ABS) data also found the number of hours worked fell 0.2 per cent, with more workers on part-time hours rather than full-time.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Meanwhile, job advertisements took a tumble in the same period.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Ads decreased by 0.5 per cent month-on-month in February and are down 2.6 per cent year-on-year, according to the latest employment report from Seek.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Applications also dropped by 0.6 per cent as workers stay put in an uncertain job market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/pauline-hanson-policies-stance-on-immigration-housing-voting-record-explained/1a21d57d-cddd-4ba5-b1ce-0b564e205b79" target="_blank"><strong><span>One Nation's popularity is surging. But what does Pauline Hanson's party actually stand for?</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Seek's Senior Economist Dr Blair Chapman told </span><a href="https://www.nine.com.au/?rf=true" rel="" target="_blank" title="Nine.com.au"><span>Nine.com.au</span></a><span> that the job market is generally a safe indicator of where the economy is headed.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"A sharp decline in jobs ads can be a bit of a red flag that demand is going to slow across the economy," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Job ads are a forward-looking indicator of employer intent – when businesses pull back on hiring, it signals reduced confidence in future demand and activity.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The current decline we're seeing is steady but gradual, not a sharp decline that should trigger worry."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chapman tempered fears that a recession is fast approaching despite the declining job figures.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Combined, these signals point to weaker demand and a labour market under increasing pressure, though the current data suggests a gradual slowdown rather than a sharp contraction," he added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/cheese-pulled-from-shelves-at-coles-iga-over-undeclared-allergen/e2b9331d-dda4-48b1-973c-a96713354c6b" target="_blank"><strong><span>Cheese pulled from shelves at Coles, IGA over undeclared allergen</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia broke a 30-year dry spell after it entered a technical recession during the COVID-19 pandemic in 2020.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Before that, Australia suffered a recession from 1990 to 1991 when GDP fell by 1.7 per cent and the unemployment rate rose to 10.8 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><span></span><strong><span>What is a recession?</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A recession is a prolonged period of weak or negative growth in Gross Domestic Product (GDP), which is the monetary value of all goods and services, is accompanied by a rise in unemployment, according to the RBA.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Essentially, if GDP goes down and unemployment goes up it can equal a recession.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A "technical recession" – which may not be accompanied by a jump in unemployment – is traditionally defined as two consecutive quarters of negative growth in GDP.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Several other economic indicators are also weak during a recession, including household spending, business investment and the number of businesses that close down.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><strong><span>NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.</span></strong></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><em><strong><span>Download the 9NEWS App here via</span></strong></em><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="" title=""><em><strong><span>Apple</span></strong></em></a><span> </span><em><strong><span>and</span></strong></em><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="" title=""><em><strong><span>Google Play</span></strong></em></a></li><li><em><strong><span>Make 9News your preferred source on Google by</span></strong></em><span> </span><a href="https://9.nine.com.au/8x987w" target="" title=""><em><strong><span>ticking this box here</span></strong></em></a></li><li><em><strong><span>Sign up to</span></strong></em><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="" title=""><em><strong><span>our breaking newsletter here</span></strong></em></a></li></ul></div></div>