The U.S. economy added 142,000 jobs in August 2024, more than a downwardly revised 89,000 in July but below forecasts of 160,000. Job gains occurred in construction, health care, government and social assistance. In contrast, employment declined in manufacturing (-24,000), reflecting a drop of 25,000 in the durable goods industries.
Employment growth in August was in line with the average job growth in recent months but below the average monthly gain of 202,000 over the 12 prior months. Meanwhile, the figures were revised lower by 25,000 for July and 61,000 for June.
In August, average hourly earnings for all employees on private nonfarm payrolls increased by 14 cents, or 0.4%, to $35.21. Over the past year, average hourly earnings have increased by 3.8%. In August, average hourly earnings of private-sector production and nonsupervisory employees increased by 11 cents, or 0.4%, to $30.27.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the August jobs data.
Sectors in Focus
Construction
In July, employment in construction rose by 34,000, higher than the average monthly gain of 19,000 over the prior 12 months. Over the month, heavy and civil engineering construction added 14,000 jobs, and employment in nonresidential specialty trade contractors continued to trend up (+14,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF PKB. The fund is mainly based on mid-and-small-cap stocks. NVR (5.20%), Martin Marietta Materials (5.09%) and Trane Technologies (5.07%) are the top three holdings of the fund (read: What Lies Ahead for Homebuilder ETFs?).
As far as the stock is concerned, Zacks Rank #1 (Strong Buy) EMCOR Group EME is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses.
Healthcare
Employment in the healthcare industry increased by 31,000 in jobs, about half the average monthly gain of 60,000 over the prior 12 months. In August, employment rose in ambulatory health care services (+24,000) and hospitals (+10,000).
Zacks Rank #1 Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum. The fund has 31.66% exposure to the pharma industry, followed by 21.62% exposure to the healthcare providers & services industry, 19.87% exposure to healthcare equipment & supplies, 16.19% focus on the biotech sector and 10.66% focus on the life sciences tools & services (read: Why Biotech ETFs Are Beating the Market).
HCA Healthcare HCA, which has a Zacks Rank #1, deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
