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Sahm rule recession indicator

0.00 ppNot triggered Data for September 2026 · Updated Nov 5, 2026

The Sahm rule indicator was 0.00 percentage points in September 2026, up 0.07 percentage points from the month before.

Over the past year it has fallen by 0.23 percentage points. The latest reading is higher than 33% of all readings since December 1959. It was last this low in April 2023. Current status: not triggered.

US recessions (NBER)
Latest
0.00 pp
1 month ago
−0.07 pp
1 year ago
0.23 pp
Change over 1 year
−0.23 pp
History percentile
44th
History since
December 1959

What it is

An indicator developed by economist Claudia Sahm. It measures how far the three-month average of the US unemployment rate has risen above its lowest three-month average of the previous 12 months.

Why it matters for investors

Historically, a rise of 0.50 percentage points or more has occurred early in US recessions, which makes it one of the timeliest recession signals based on real-time data.

How to read it

At 0.50 or above, the rule is triggered. Readings climbing toward that level show the labour market weakening. Sahm has noted the rule can give false signals when unemployment rises for unusual reasons, such as a fast-growing labour force.

Method and sources

Source: Claudia Sahm, via the Federal Reserve Bank of St. Louis, retrieved from FRED, Federal Reserve Bank of St. Louis (series SAHMREALTIME). Figures are published with a lag and can be revised.

This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.

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Questions

Still have a question? Get in touch.

How is the Sahm rule calculated?

Take the three-month moving average of the national unemployment rate and subtract its lowest value over the prior 12 months. A result of 0.50 percentage points or more triggers the rule.

What does 'real-time' mean in this series?

It uses the unemployment data as it was first published each month, rather than later revisions, which shows what the rule would have signalled at the time.

Is the Sahm rule a forecast?

No. It is designed to identify the start of a recession quickly, not to predict one in advance.

Educational and informational only. Not investment advice.