U.S. consumer confidence levels rose to the best level in more than three years in January, driven up in large part by optimism over the state of hiring, the U.S. Conference Board said today.

The private research group, reported that its index of overall consumer confidence jumped to a reading of 106.3, from the revised 103.8 seen in December.

January’s reading bested analysts’ prediction of a rise to 105, and left the index at its best reading since the 106.3 of June 2002. The index was equal to 100 in 1985.

“This month’s increase was driven solely by consumers” assessment of current economic conditions, especially their more positive view of the job market,” said Lynn Franco, who directs the survey.

The report showed a big gain in the present situation index to 128.4, from December’s revised 120.7. However, the expectations index — which gauges attitudes about future economic developments — lost ground and slipped to 91.5 from the prior month’s revised 92.6.

“While consumers rate current conditions more favorably than they have in more than four years, the improvement has not translated into greater optimism about the near-term future,” in turn creating a gap between those two factors, Franco said.

The Conference Board noted in the report that respondents who see economic conditions as “good” rose to 25.8% of the survey in January, from 24.4%, while those who viewed current conditions as “bad” took a step higher to 16% of respondents, from 14.9% who held that view in December.

Meanwhile, the Conference Board found that 26.9% of respondents deemed jobs as “plentiful,” in January, versus the 23.3% who felt the same way a month ago. Those who feel jobs are “hard to get” slipped to 20.3%, compared with 22.5% who felt negatively towards the employment situation in December.

Separately, the U.S. Labor Department said Tuesday its employment-cost index rose a seasonally adjusted 0.8% in the fourth quarter after going up at the same rate a quarter earlier. Wages and salaries grew 0.8% after climbing 0.6% in the third quarter, while benefit costs rose 1.1% after increasing 1.3%.