Rising State Unemployment Triggers Recession Warning, But Economists See Labor Market Strength

Unemployment rates have been rising in states like California and New Jersey, triggering "Sahm's Rule" recession indicators, but this may not signal a national recession.

Increasing immigration is contributing to rising state unemployment as new workers search for jobs, a sign of labor market strength.

20 states triggering Sahm's Rule has caught Wall Street's attention, but the rule wasn't designed for state data which can be volatile.

Economists say increasing labor supply from immigration helps fill job vacancies, fuels consumer demand, and boosts economic growth.

If the US entered a recession, unemployment would rise across all states, not just in pockets, so localized increases now aren't very concerning.