BofA Says Low-Income US Workers Overtook High Earners in Job, Wage Growth

Bank of America said the US labor market is moving beyond the so-called K-shaped economy.

BofA said on August 6 that employment growth for low-income workers was 3.0% in July from a year earlier, above the 1.0% rate for high-income earners. After-tax wage growth for low-income workers also reached 5.2%, topping the 4.2% pace for high-income earners for the first time since December 2024.

BofA said wage gains are supporting consumer spending as productivity growth remains solid and do not necessarily stoke inflation.