Read our full analysis for a more in-depth look at these trends.
The Institute Employment Report: June 2026
Payroll growth strengthened in June as unemployment trends improved and lower-income wage growth accelerated.
July 2026
Key takeaways
- Bank of America customer deposit account data suggests labor market momentum improved again in June, with estimated payroll growth accelerating to 1.7% year-over-year (YoY). This strength appears broad-based, with job growth picking up in both FIFA World Cup 2026™ host cities and non-host cities, indicating the improvement extends beyond any tournament-related boost.
- Consistent with a healthy labor market, unemployment payments into Bank of America customer accounts continued to soften in June. The number of households receiving unemployment benefits showed further moderation, reinforcing signs that labor market conditions remain resilient despite softer official payroll readings.
- Lower-income households saw a rebound in after-tax wage growth, rising to 4.1% YoY in June, above middle-income households (3.4%) and nearly matching higher-income households (4.2%). Increased job switching activity, particularly among lower-income workers who tend to receive larger pay gains when changing employers, could be helping narrow the wage growth gap.
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