How lower-paid workers are getting their biggest pay raise in years

September 11, 2026 / 2:25 PM EDT / CBS News

Although overall pay growth for U.S. workers has slowed, in July one group saw their fastest wage growth in more than three years — by jumping ship and changing jobs, according to the Bank of America Institute.

Job switchers receiving larger pay hikes were mostly lower-paid, hourly workers, the research firm said in a recent report. In July, the three-month moving average wage increase for job changers hit a three-year high of 12.5%, according to the report.

Pay bumps for switching jobs remain below pandemic levels, the firm notes. Still, economists say they're encouraged by the acceleration in wage growth among lower-paid workers.

"The fact that we're seeing these workers see a strong jump in pay associated with job changing suggests there's a pickup in pay for lower-income workers, and there's increased mobility among those who are paid hourly," Bank of America Institute economist Taylor Bowley told CBS News. "We are seeing a narrowing in what used to be a strong pay differential between lower-income and higher-income workers."

In August, lower-income households' after-tax wages rose 4.7% year over year, while higher-income households' pay rose 3.5%.

Lower-paid workers tend to be…

Original source: https://www.cbsnews.com/moneywatch/