Read our full analysis for a more in-depth look at these trends.
The Institute Employment Report: September 2026
Bank of America Institute analysis shows slower payroll growth, declining unemployment payments and continued strength in lower-income wage growth.
October 2026
Key takeaways
- Job growth softened further in September, according to Bank of America's deposit data, with growth of 1.4% year-over-year (YoY), from 1.5% in August. But falling unemployment payments in September indicate a relatively healthy overall picture.
- Lower-income households' wage growth remains strongest, despite a narrowing gap. After-tax wage growth eased to 4.5% YoY for lower-income households in September, while rising to 3.8% and 3.7% for middle- and higher-income households, respectively.
- Lower tax withholdings and a relative strengthening in the younger/lower-income end of the labor market are driving this story. Additionally, average hours have risen in some lower-paid industries, which is also boosting pay packets.
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