The Conference Board Employment Trend Index now signals strong jobs growth ahead. The index reading for February, released today, stands at 101.01, up from an upwardly revised reading of 99.69 in January.
Some 5 million to 6 million jobs could be added through the end of the year, and the unemployment rate will drop well below 5%, said Gad Levanon, head of The Conference Board Labor Markets Institute.
“The combination of declining new infections, lower pandemic-related restrictions, households flush with savings, and large government stimulus will all contribute to robust growth in economic activity and employment in 2021,” Levanon said.
Still, concerns remain. Levanon cautioned that when the pandemic hit, a tight labor market appeared years away. However, the current forecast is that it may reemerge as soon as 2022.