The level of CEO confidence rose to 82 points in Q2 of 2021 — a 9-point increase from Q1. This is the highest level recorded since 1976, when The Conference Board started measuring CEO confidence.
In the second quarter, 88% of CEOs believed that economic conditions would improve over the next six months, while 94% of CEOs said that conditions are better compared to six months ago. CEOs are also more hopeful about the state of their own industries, with a 21% increase in optimism in Q2. Over half of CEOs expect to grow their workforce over the next year — up from 47% in Q1.
The demand to hire has led to difficulty in finding qualified workers. “For CEOs, the challenge is no longer staying afloat, but keeping pace — in particular, with a likely resurgence of the labor shortages experienced before the pandemic,” said vice chairman Roger W. Ferguson, Jr. of The Conference Board. Vaccine distribution is pushing the U.S. economy to pre-pandemic levels, but for businesses to succeed, they will need to consider new workforce demands.