Rising consumer confidence may be a sign that more Americans will soon rejoin the workforce, Anthony Chan, chief economist at Chase, said ahead of Thursday's June jobs report.
The Conference Board's consumer confidence index for last month rose 17.4 percent from June 2014. The reading of 101.4 was the second-highest level since the economic expansion began, Chan noted.
"When that goes up on a year-over-year basis, labor force participation tends to go up," he told CNBC's "Squawk Box" "That's a noisy number. It doesn't jump month to month, but certainly over a several-month period, I continue to see that number moving higher."
The labor force participation rate measures the number of Americans who are employed or seeking employment. While the unemployment rate has fallen relatively steadily, labor force participation has been stuck at levels last seen in the late 1970s.
Labor force participation ticked higher to 62.9 percent in May.