3 Sector ETFs & Stocks to Bet on March Jobs Data

The U.S. economy added 303,000 jobs last month. That data breezed past expectations for 205,000 job gains, according to FactSet consensus estimates, as quoted on CNBC. The unemployment rate in the United States dipped to 3.8% in March 2024 from the previous month's two-year high of 3.9% and surprising market expectations, which had forecasted the rate to remain unchanged.

Additionally, the labor force participation rate increased to 62.7% from a near one-year low of 62.5% in the preceding periods, and the employment-population ratio climbed to 60.3% from 60.1%. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the strong March jobs data.

Sectors in Focus

Healthcare

Employment in the healthcare industry increased by 72,000 in jobs, above the average monthly gain of 60,000 over the prior 12 months. In March, job growth continued in ambulatory health care services (+28,000), hospitals (+27,000), and nursing and residential care facilities (+18,000).

Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum. HCA Healthcare HCA, which has a Zacks Rank #2 (Buy) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.

Construction

In March, employment in construction (+39,000) was in line with the average monthly gain over the prior 12 months (+19,000). Over the month, employment increased in nonresidential specialty trade contractors (+16,000).

Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF PKB. As far as the stock is concerned, Zacks Rank #2 (Buy) Dycom Industries DY can be played. It is a leading provider of specialty contracting services throughout the United States.

Leisure

Employment in leisure and hospitality rose by 49,000. The industry has returned to its pre-pandemic February 2020 level. Over the past one year, job growth in the industry had averaged 37,000 per month.

The data makes Invesco Dynamic Leisure and Entertainment ETF PEJ a timely investment. The Zacks Rank #2 Brinker International EAT, owns, operates, develops and franchises various restaurants under Chili's Grill & Bar (Chili's) and Maggiano's Little Italy (Maggiano's) brands.

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