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6 Sector ETFs That Show Promise After December Jobs Data
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The United States economy added 223,000 jobs in December of 2022, the least since December of 2020, after a downwardly revised 256,000 rise in November, and beating market expectations of 200,000.
The unemployment rate in the United States declined to 3.5% in December 2022, falling below market expectations of 3.7% and matching the rates seen in September and July, which were the lowest since February 2020.
For 2023, the labor market is set to remain tight but job growth will slow further and the unemployment rate is set to increase to 4.6%, according to Fed forecasts.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the December jobs data.
Leisure
Employment in leisure and hospitality rose by 67,000. However, leisure and hospitality added an average of 79,000 jobs per month in 2022, substantially less than the average gain of 196,000 jobs per month in 2021. Employment in the industry remains below its pre-pandemic February 2020 level by 5.5%. The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment.
Healthcare
Employment in the healthcare industry increased by 55,000 in December. Job gains occurred in health care services (+30,000), hospitals (+16,000), and nursing and residential care facilities (+9,000). Job growth in health care averaged 49,000 per month in 2022, substantially higher than the 2021 average monthly gain of 9,000. Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the momentum.
Construction
Employment in Construction rose by 28,000 in December. Construction employment increased by an average of 19,000 per month in 2022, slightly higher than the average of 16,000 per month in 2021. Invesco Dynamic Building & Construction ETF (PKB - Free Report) can thus be considered for a play.
Retail
Employment in retail trade was decent in December (+9,000). However, job growth in retail trade averaged 16,000 per month in 2022, less than half the average growth of 35,000 per month in 2021. SPDR S&P Retail ETF (XRT - Free Report) outlook deserves a look.
Manufacturing
Employment in manufacturing (+8,000) was decent in December. In 2022, manufacturing added an average of 32,000 jobs per month, almost in line with the average of 30,000 jobs per month in 2021. Industrial Select Sector SPDR ETF (XLI - Free Report) should thus be tracked.
Mining
Employment in mining rose by 4,000 in December, reflecting a gain in support activities for mining (+5,000). Since February 2021, mining employment has increased by 104,000. SPDR S&P Metals & Mining ETF (XME - Free Report) can thus be considered for a play.
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6 Sector ETFs That Show Promise After December Jobs Data
The United States economy added 223,000 jobs in December of 2022, the least since December of 2020, after a downwardly revised 256,000 rise in November, and beating market expectations of 200,000.
The unemployment rate in the United States declined to 3.5% in December 2022, falling below market expectations of 3.7% and matching the rates seen in September and July, which were the lowest since February 2020.
For 2023, the labor market is set to remain tight but job growth will slow further and the unemployment rate is set to increase to 4.6%, according to Fed forecasts.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the December jobs data.
Leisure
Employment in leisure and hospitality rose by 67,000. However, leisure and hospitality added an average of 79,000 jobs per month in 2022, substantially less than the average gain of 196,000 jobs per month in 2021. Employment in the industry remains below its pre-pandemic February 2020 level by 5.5%. The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment.
Healthcare
Employment in the healthcare industry increased by 55,000 in December. Job gains occurred in health care services (+30,000), hospitals (+16,000), and nursing and residential care facilities (+9,000). Job growth in health care averaged 49,000 per month in 2022, substantially higher than the 2021 average monthly gain of 9,000. Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the momentum.
Construction
Employment in Construction rose by 28,000 in December. Construction employment increased by an average of 19,000 per month in 2022, slightly higher than the average of 16,000 per month in 2021. Invesco Dynamic Building & Construction ETF (PKB - Free Report) can thus be considered for a play.
Retail
Employment in retail trade was decent in December (+9,000). However, job growth in retail trade averaged 16,000 per month in 2022, less than half the average growth of 35,000 per month in 2021. SPDR S&P Retail ETF (XRT - Free Report) outlook deserves a look.
Manufacturing
Employment in manufacturing (+8,000) was decent in December. In 2022, manufacturing added an average of 32,000 jobs per month, almost in line with the average of 30,000 jobs per month in 2021. Industrial Select Sector SPDR ETF (XLI - Free Report) should thus be tracked.
Mining
Employment in mining rose by 4,000 in December, reflecting a gain in support activities for mining (+5,000). Since February 2021, mining employment has increased by 104,000. SPDR S&P Metals & Mining ETF (XME - Free Report) can thus be considered for a play.