Read our full analysis for a more in-depth look at these trends.
The Institute Employment Report: December 2025
Jobs growth rebounded in December, according to Bank of America internal data.
January 2026
Key takeaways
- An estimate of payrolls based on Bank of America internal data shows that year-over-year (YoY) payroll growth rebounded in December to 0.6% YoY, up from 0.2% YoY in November. Meanwhile, the growth in the number of households receiving unemployment benefits remained around 10% YoY in December.
- So, while the labor market appears to still be in a “low-hire, low-fire” mode, the apparent rebound in jobs growth may suggest the worst of the slowdown is behind us.
- After-tax wage growth eased in December across income cohorts, most notably for middle-income households (1.5% YoY vs. 2.3% in November) and higher-income households (3.0% YoY vs. 3.7%). While this may be temporary, it bears watching given potential implications for consumer spending.
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