In notes this past week, Bank of America Merril Lynch (BAML), JPMorgan, and the Federal Reserve Bank of Atlanta all laid out good news regarding the paychecks of low-wage workers.
In a note on the growth of subprime auto loans, BAML economists Emanuella Enenajor and Lisa Berlin showed reason for optimism based on wage-growth metrics from the Bureau of Labor Statistics’ employment report.
“Finally, the lower-income consumer, the demographic segment most likely comprising subprime borrowers, has been experiencing strong income growth,” the note read.
“Average wage growth of the bottom 10% and bottom 20% of employment categories has been accelerating at twice the pace of all other jobs.”
Bank of America