We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Downbeat August Jobs Data Puts Focus on These Sector ETFs
Read MoreHide Full Article
The U.S. economy added 22,000 jobs in August 2025, lower than an upwardly revised 79,000 in July and market forecasts of 75,000, as quoted on tradingeconomics. The data reinforces the softness in the labor market.
Jobs data for June were revised down by 27,000 and the change for July was revised up by 6,000. With these revisions, previously-reported employment data in June and July combined got cut by 21,000. The unemployment rate at 4.3% changed little in August, per the government data.
Job growth was mainly noticed in sectors such as health care (+31,000) and social assistance (+16,000). Job losses also pronounced in wholesale trade (12,000) and manufacturing (12,000).
Below, we have highlighted some of the sectors and their related exchange-traded funds (ETFs) that may drag investors’ attention in light of downbeat August jobs data.
Winner
Healthcare – Health Care Select Sector SPDR ETF (XLV - Free Report)
Health care added 31,000 jobs in August, below the average monthly gain of 42,000 over the past one year. Employment continued to go up over the month in ambulatory health care services (+13,000), nursing and residential care facilities (+9,000), and hospitals (+9,000).
Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 22.32% exposure to the healthcare providers & services industry, about 22% focus on Health Care Equipment & Supplies, 17.1% focus on the biotech sector and 8.7% focus on the life sciences tools & services. The ETF XLV gained 6.9% over the past month.
Manufacturing employment changed little in August (-12,000) but is down by 78,000 over the year. This indicates that the sector is in a vulnerable position.
Zacks Rank #1 The Industrial Select Sector SPDR Fund (XLI - Free Report) includes companies from the following industries: industrial conglomerates; aerospace & defense; machinery; air freight & logistics; road & rail; commercial services & supplies; electrical equipment; construction & engineering; building products; airlines; and trading companies & distributors.
General Electric (6.51%), RTX Corp (4.59%) and Caterpillar Inc (4.28%) are the top three stocks of the fund. The fund charges 8 bps in fees. The ETF XLI has been flat (up only 0.2%) over the past month.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Downbeat August Jobs Data Puts Focus on These Sector ETFs
The U.S. economy added 22,000 jobs in August 2025, lower than an upwardly revised 79,000 in July and market forecasts of 75,000, as quoted on tradingeconomics. The data reinforces the softness in the labor market.
Jobs data for June were revised down by 27,000 and the change for July was revised up by 6,000. With these revisions, previously-reported employment data in June and July combined got cut by 21,000. The unemployment rate at 4.3% changed little in August, per the government data.
Job growth was mainly noticed in sectors such as health care (+31,000) and social assistance (+16,000). Job losses also pronounced in wholesale trade (12,000) and manufacturing (12,000).
Below, we have highlighted some of the sectors and their related exchange-traded funds (ETFs) that may drag investors’ attention in light of downbeat August jobs data.
Winner
Healthcare – Health Care Select Sector SPDR ETF (XLV - Free Report)
Health care added 31,000 jobs in August, below the average monthly gain of 42,000 over the past one year. Employment continued to go up over the month in ambulatory health care services (+13,000), nursing and residential care facilities (+9,000), and hospitals (+9,000).
Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 22.32% exposure to the healthcare providers & services industry, about 22% focus on Health Care Equipment & Supplies, 17.1% focus on the biotech sector and 8.7% focus on the life sciences tools & services. The ETF XLV gained 6.9% over the past month.
Loser
Manufacturing – Industrial Select Sector SPDR ETF (XLI - Free Report)
Manufacturing employment changed little in August (-12,000) but is down by 78,000 over the year. This indicates that the sector is in a vulnerable position.
Zacks Rank #1 The Industrial Select Sector SPDR Fund (XLI - Free Report) includes companies from the following industries: industrial conglomerates; aerospace & defense; machinery; air freight & logistics; road & rail; commercial services & supplies; electrical equipment; construction & engineering; building products; airlines; and trading companies & distributors.
General Electric (6.51%), RTX Corp (4.59%) and Caterpillar Inc (4.28%) are the top three stocks of the fund. The fund charges 8 bps in fees. The ETF XLI has been flat (up only 0.2%) over the past month.