The Conference Board employment trends index rose to a reading of 111.14 in February from its revised reading of 109.93 in January. The February reading is up 3.2 percent from the same month a year ago.

“As a result of the large increase in February, and positive revisions to earlier months, the employment trends index is signaling an improving employment environment,” said Gad Levanon, director of macroeconomic research at The Conference Board. “However, even though the labor market has gained in recent months, the looming sequester is likely to slow the pace of job creation in the near term.”