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December Jobs Data Put Focus on These Sector ETFs & Stocks

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Key Takeaways

  • Healthcare jobs rose steadily, keeping XLV in focus amid moderate but stable sector momentum.
  • Food services hiring stayed resilient, supporting restaurant plays like EATZ and QSR.
  • Retail shed jobs despite gains in electronics, putting selective pressure on names like TGT.

The U.S. economy added 50,000 jobs in December 2025, lower than the downwardly revised 56,000 in November and short of the Dow Jones estimate for 73,000, as quoted on CNBC.The unemployment rate dropped to 4.4%, compared with the forecast for 4.5%, per the same CNBC article.

Average hourly earnings increased 0.3% sequentially, in line with the forecast (per CNBC), although the annual increase of 3.8% was 0.2 percentage point higher than expected. Below, we have highlighted some of the sectors and their related exchange-traded funds (ETFs) that will likely see smooth trading in the days ahead in light of the December jobs data.

Winning Sector ETFs in Focus

Healthcare

Health care employment remained on an upward trajectory in December, rising by 21,000 jobs, including a 16,000 increase in hospital employment. In 2025, the sector added an average of 34,000 jobs per month, slower than the 56,000 average monthly gains seen in 2024.

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.

HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #3 (Hold), deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States. The company has a trailing four-quarter earnings surprise of 12.42%, on average.

Food Services & Drinking Places

Employment in food services and drinking places added 27,000 jobs in December. In 2025, the sector recorded an average monthly gain of 12,000 jobs, broadly in line with the 11,000 jobs added per month in 2024.

AdvisorShares Restaurant ETF (EATZ - Free Report) can thus be considered for a play. Restaurant Brands International (QSR - Free Report) , a Zacks Rank #2 (Buy) stock, is one of the world's largest quick-service restaurant companies. This is a good stock pick in this context.

Electronics and Appliance retailers

There was a gain of 5,000 jobs at electronics and appliance retailers. However, these gains were more than offset by job losses at warehouse clubs, supercenters, and other general merchandise retailers (–19,000), as well as at food and beverage retailers (–9,000). As a result, retail trade shed 25,000 jobs during the month.

This puts focus on the Zacks Rank #3 stock Target (TGT - Free Report) . Target provides an array of goods ranging from household essentials and electronics to toys and apparel. The stock has about 5% exposure to Invesco S&P Ultra Dividend Revenue ETF (RDIV - Free Report) .

 


 

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