Read our full analysis for a more in-depth look at these trends.
The Institute Employment Report: August 2026
Growth in jobs and after-tax wages softened in August, but both continue to suggest a broadly resilient labor market.
September 2026
Key takeaways
- Bank of America customer deposit account data suggests labor market momentum cooled in August, with estimated payroll growth of 1.5% year-over-year (YoY), down from 1.8% in July.
- The long-standing "K" shape between higher- and lower-income households' after-tax wage growth has reversed: August saw lower-income households' after-tax wage growth of 4.7% YoY, while higher-income households' after-tax wage growth was 3.5% YoY.
- Recently, there has been an increase in job switching, and the pay change associated with a job change reached the highest level in more than three years in July. This acceleration is most notable among weekly-paid employees, suggesting rising mobility among hourly and lower-income workers may be contributing to the narrowing of wage growth differences.
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