BofA Says Low-Income US Workers Are Outpacing 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 Aug. 6 that employment growth for low-income workers was 3.0% in July from a year earlier, surpassing the 1.0% gain for high-income workers. After-tax wage growth for low-income workers also reached 5.2%, topping the 4.2% rate for high-income workers 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.