Sahm rule

A recession signal: the 3-month average unemployment rate rising 0.5 points above its low of the past year.

Why it matters

It has turned on at the start of every US recession since 1970, usually within a few months of the start.

Readings near 0.3 to 0.4 are a warning; 0.5 or more is the trigger.

In the Cluenex app, this explanation opens next to every sahm rule figure, with the live reading for the stock you are looking at. Open it in Cluenex