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The U.S. economy added 209,000 jobs in June 2023, following a downwardly revised 306,000 in May, and below market forecasts of 225,000. It marked the lowest reading since December of 2020, but remaining more than twice the 70,000-100,000 needed per month to continue with growth in the working-age population. Meanwhile, private sector jobs jumped by 497,000 in June, way ahead of the 267,000 gains in May and much better than the 220,000 estimate.
Non-farm employment has increased by an average of 278,000 per month over the first six months of 2023, lower than the average of 399,000 per month in 2022. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the June jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 41,000 in jobs, almost in line with the average monthly gain of 42,000 so far this year. Job gains occurred in nursing and residential care facilities (+12,000), and home health care services (+9,000) and hospitals (+15,000).
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #1 (Strong Buy) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Leisure
Employment in leisure and hospitality rose by 21,000. This marks the third successive month of little employment change for this industry. Employment in the industry remains below its February 2020 level by 369,000, or 2.2%. The leisure and hospitality led the private sector job growth in the month with 232,000 new hires.
The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment. The Zacks Rank #1 BJ's Restaurants (BJRI - Free Report) , owns and operates a chain of high-end casual dining restaurants in the United States.
Construction
In June, employment in construction (+23,000). Employment in the industry has increased by an average of 15,000 per month thus far this year, compared with an average of 22,000 per month in 2022.Private sector jobs too surged in this construction (+97,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF (PKB - Free Report) . As far as the stock is concerned, Zacks Rank #1 Dycom Industries (DY - Free Report) is a top bet. It is a leading provider of specialty contracting services throughout the United States.
Transportation
Employment in transportation and warehousing dropped by 7,000 in June. Over the month, employment fell in couriers and messengers (-7,000) and in warehousing and storage (-7,000), while air transportation added 3,000 jobs. The Zacks Rank #2 (Buy) SPDR S&P Transportation ETF (XTN - Free Report) can thus be considered for a play. Airlines company American Airlines (AAL - Free Report) has a Zacks Rank #3.
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4 Sector ETFs & Stocks to Bet on June Jobs Data
The U.S. economy added 209,000 jobs in June 2023, following a downwardly revised 306,000 in May, and below market forecasts of 225,000. It marked the lowest reading since December of 2020, but remaining more than twice the 70,000-100,000 needed per month to continue with growth in the working-age population. Meanwhile, private sector jobs jumped by 497,000 in June, way ahead of the 267,000 gains in May and much better than the 220,000 estimate.
Non-farm employment has increased by an average of 278,000 per month over the first six months of 2023, lower than the average of 399,000 per month in 2022. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the June jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 41,000 in jobs, almost in line with the average monthly gain of 42,000 so far this year. Job gains occurred in nursing and residential care facilities (+12,000), and home health care services (+9,000) and hospitals (+15,000).
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #1 (Strong Buy) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Leisure
Employment in leisure and hospitality rose by 21,000. This marks the third successive month of little employment change for this industry. Employment in the industry remains below its February 2020 level by 369,000, or 2.2%. The leisure and hospitality led the private sector job growth in the month with 232,000 new hires.
The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment. The Zacks Rank #1 BJ's Restaurants (BJRI - Free Report) , owns and operates a chain of high-end casual dining restaurants in the United States.
Construction
In June, employment in construction (+23,000). Employment in the industry has increased by an average of 15,000 per month thus far this year, compared with an average of 22,000 per month in 2022.Private sector jobs too surged in this construction (+97,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF (PKB - Free Report) . As far as the stock is concerned, Zacks Rank #1 Dycom Industries (DY - Free Report) is a top bet. It is a leading provider of specialty contracting services throughout the United States.
Transportation
Employment in transportation and warehousing dropped by 7,000 in June. Over the month, employment fell in couriers and messengers (-7,000) and in warehousing and storage (-7,000), while air transportation added 3,000 jobs. The Zacks Rank #2 (Buy) SPDR S&P Transportation ETF (XTN - Free Report) can thus be considered for a play. Airlines company American Airlines (AAL - Free Report) has a Zacks Rank #3.