What is the Sahm Rule?
Predicting Early Signs of a Recession.
The Sahm Rule states that when the three-month moving average of the national unemployment rate is at least 0.5 percentage points above its low over the prior 12 months, it is the early months of a recession.
Let's Talk Economics!
The Sahm Rule is a very good coinciding indicator confirming the early stages of a recession. A recession usually follows by o…
Keep reading with a 7-day free trial
Subscribe to FinThink Research to keep reading this post and get 7 days of free access to the full post archives.