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ECONOMY: Magnitude of a Recession. Composition of a Recovery. One Honest Gauge.

The most reliable recession indicator in modern macroeconomics tripped in the summer of 2024, and no recession came. The rule did not break; it reads only the magnitude of a rise in unemployment, never its composition. This cycle, for the first time in fifty-seven years, half the rise was not job loss at all but labour supply — an immigration surge the rule could not tell apart from decline. Every version of the gauge screamed except one. That one was right.

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