Bank of America says the U.S. labor market is moving beyond the “K-shaped” economy.
Lower-income households saw 3% YoY job growth in July versus 1% for higher-income workers, while after-tax wage growth reached 5.2%, topping 4.2% for higher-income households for the first time since December 2024.
BofA says stronger wage gains, alongside solid productivity growth, support consumer spending without necessarily increasing inflation.
BOFA: LOWER-INCOME JOBS, WAGES OUTPACE HIGHER EARNERS
Bank of America says the U.S. labor market is moving beyond the "K-shaped" economy.
Lower-income households saw 3% YoY job growth in July versus 1% for higher-income workers, while after-tax wage growth reached 5.2%, topping… pic.twitter.com/3Yf4j6RBf8
— *Walter Bloomberg (@DeItaone) August 6, 2026