Lower-Paid Workers See Largest Pay Gains in Years as Job Switching Surges

Lower-paid workers experience biggest pay raise in years as job switchers see 12.5% wage jump, according to BofA report.

Editorial Desk

September 11, 2026 One Min Read

POLICY WIRE — Washington, D.C. — A recent analysis by the Bank of America Institute reveals that lower-paid, hourly workers experienced their highest wage increase in over three years in July, with job switchers seeing a 12.5% average pay boost, marking a three-year high.

The data highlights a growing trend among lower-income employees who are actively seeking better opportunities by changing jobs, even as wage growth has slowed nationwide. Despite this, the increases still fall short of pandemic-era levels, though economists view the shift as a positive sign for the labor market.

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In August, after-tax wages for lower-income households rose 4.7% year-over-year, compared to 3.5% for higher-income families. These workers are often found in sectors like hospitality, transportation, and retail, where job mobility can lead to significant pay improvements. However, challenges persist, including a stagnant federal minimum wage and rising inflation that continues to erode purchasing power.

Reporting by Policy-Wire (PW)

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