Institute Employment Report for January 2026

This document is an employment report published by the Bank of America Institute, detailing labor market conditions as of January 2026. It presents an analysis of payroll growth, unemployment benefits, and wage growth across different income households. The report indicates a year-over-year payroll growth of 0.8%, reflecting a stabilizing labor market. It notes a slight decrease in the number of households receiving unemployment benefits, which fell to 9% year-over-year. The report highlights a significant disparity in after-tax wage growth, with higher-income households experiencing a growth rate of 3.7%, compared to 0.9% for lower-income households. Middle-income households showed a growth rate of 1.6%, which is below the average of the previous year. The document also discusses the potential implications of these trends on consumer spending, particularly if the slowdown in middle-income wage growth continues. The methodology section outlines how Bank of America data was utilized to derive these insights.