Australia on Verge of Recession as Unemployment Rises, Hours Worked Fall

Unemployment figures suggest Australia may soon technically be in a recession according to the Sahm rule, which defines a recession as a 0.5 pct point increase in unemployment over 3 months compared to the prior 12 month minimum.

It's best not to wait for official GDP figures to confirm a recession, as measures like unemployment give an earlier warning that action is needed.

Youth unemployment rising sharply suggests overall unemployment may continue increasing.

Average hours worked per capita is also falling, another recession indicator.

But oddly employment itself is still growing, so the situation remains unclear. The economy clearly needs support though, not further slowdown.