Institute Employment Report for February 2026

This document is an employment report detailing labor market conditions in February 2026. It presents data from Bank of America customer accounts, indicating a year-over-year payroll growth of 1.3%, which reflects a strengthening labor market. However, the report highlights a concerning trend in wage growth disparities among different income groups. Higher-income households experienced a 4.2% increase in after-tax wages, while lower- and middle-income households saw much slower growth at 0.6% and 1.2%, respectively. This widening gap is the largest recorded since the start of the data series in 2015. The report also notes a decline in pay raises associated with job changes, which fell to 6.7% in January 2026, down from 8.6% in 2025. The methodology section outlines the use of Bank of America transaction data to inform these macroeconomic views, emphasizing the importance of considering this data alongside other economic indicators.