21 states where recession bells are ringing after unemployment jumps

Rising unemployment in 21 US states points to a recession later this year, Piper Sandler's Nancy Lazar says.Peter Zelei Images/Getty Images

• Rising unemployment in nearly half of US states points to a recession this year, one economist says.
• 21 states have seen a jump in joblessness over the last year, Piper Sandler's Nancy Lazar told BI.

Unemployment has risen sharply in nearly half of US states, paving the way for a recession later this year, one top economist says.

Piper Sandler's chief global economist, Nancy Lazar, highlighted 21 states to Business Insider where three-month average unemployment has risen by at least 0.5 percentage points over the past 12 months. The states in question account for over 40% of US GDP.

When unemployment has jumped by that much, in that many states, a recession has almost always followed, Lazar said. The economic indicator is known as the "Sahm Rule."

Here are the 21 states signaling a recession may be on the way: