The Bank of America Institute released its July 2026 employment report, offering a clear view of current labor market trends. Data from customer deposit accounts show labor market momentum increased throughout July. Estimated payroll growth reached 2.0 percent year-over-year, rising from the 1.7 percent recorded in June.
Lower-income households are leading this growth. These households experienced after-tax wage increases of 5.2 percent year-over-year in July. This marks the first time since December 2024 that wage growth for this group outpaced that of higher-income earners. The shift appears tied to increased job switching and changes in tax withholding.
Despite the positive employment figures, some workers continue to seek additional income streams. The report indicates a 0.4 percentage point year-over-year increase in workers using gig work to supplement their regular paychecks. Unemployment payment data remains low, which suggests persistent resilience in the broader labor market.
These findings reflect broader trends tracked by the Institute, which monitors spending and employment behavior through internal bank data. The full analysis provides additional context for these shifts in the national economy.