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Bank of America says American wealth, not hiring, is driving the falling unemployment rate

8/12/2026

Falling unemployment in the United States may reflect how wealthy Americans feel more than how many new jobs exist.

Bank of America analysts have argued that high levels of wealth among the American public are the primary force pulling the unemployment rate lower.

The unemployment rate, to define the term: it counts only people who are actively looking for work and cannot find it.

Those who stop looking entirely drop out of the count, and the rate falls whether hiring picked up or not.