The Institute Employment Report: July 2026

David Tinsley

Taylor Bowley

August 2026

Bank of America customer deposit account data suggests labor market momentum strengthened further in July, with estimated payroll growth accelerating to 2.0% year-over-year (YoY), up from 1.7% in June.
Job growth was led by lower-income households, while unemployment payments into customer accounts remained subdued, pointing to continued labor market resilience.
Lower-income households saw after-tax wage growth accelerate to 5.2% YoY in July, surpassing higher-income households for the first time since December 2024, potentially aided by increased job switching and lower tax withholdings. Still, despite the strength in "regular" employment, the share of workers supplementing their income with gig work was up 0.4 percentage points YoY in June.

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Despite low savings, Gen Z continue to prioritize experiences and “little treats,” with gig work supporting spending for some.

Consumers generally remain resilient, but regional labor market and spending patterns are far from uniform.

Small and medium-sized exporters have seen a surge in foreign currency revenues.