The economic recovery from the historic COVID-19 pandemic that began last year regained steam at the start of 2021. As a result, record savings and hot financial markets indicate an even more accelerated upturn will play out across the rest of the year, according to a Beacon Economics forecast.

“We’re not there yet, but even the most damaged industries are starting to see light at the end of the tunnel, while industries that went essentially unscathed are facing tight job markets and having trouble hiring people,” said Christopher Thornberg, founding partner with Beacon Economics.

As is the case nationally, the pace of vaccinations in California has gathered significant momentum during the past month. Importantly, the state has reached its target of administering 4 million COVID-19 vaccine doses specifically within its most disadvantaged areas, a goal that makes it easier for counties to widely reopen businesses and other public spaces. As vaccines boost consumer confidence in returning to normal activities and lead to a further easing of business restrictions, the labor market recovery in the state will accelerate, says the forecast.