British job market has a recession signal flashing

People walk past stalls at Portobello Road Market in west London on August 19, 2023. (Photo by HENRY NICHOLLS/ AFP)

LONDON: With 4.3% unemployment, the British economy would seem to be holding up well against a barrage of headwinds. But by one reliable measure, the jobless rate may already be telegraphing a recession.

The so-called “Sahm rule” suggests Britain is undergoing the steepest rise in unemployment in the developed world, deepening recession fears that are growing by the day in the City of London.