4 Winning Funds From US Private Sector Job Additions

Job growth in August was less than expected, owing to the ongoing trade conflict between the United States and China. However, nonfarm payrolls were largely pushed by the temporary hiring of Census workers and newly opened jobs across many private sectors such as healthcare and financial services. Therefore, investing in mutual funds from these growing sectors could help investors rope in gains.

U.S. Job Market is Robust

Per the Labor department, total nonfarm payroll employment in August increased by 130,000. The major factor behind this rise was the mass recruitment of temporary workers for the 2020 Census and somewhat broad-based new job additions across business services, healthcare, financial services and social assistance. 

In fact, according to a Forbes report, a sizeable number of recruiters in the United States believe that the country’s job market is rather robust. According to them, corporate demand is more than the number of qualified candidates. In addition, with a low unemployment rate, companies are having a hard time finding candidates with the right experience and skills.

August’s Top-Performing Sectors

To be specific, August’s job gains are largely attributed to the professional and business services sector, which gained 37,000 new jobs. The healthcare sector also added an impressive 24,000 jobs, with new roles in ambulatory health care services and in hospitals.

Financial services was another sector to add notable new positions in August, with as many as 15,000 new jobs in insurance carriers and related activities. Finally, social assistance created 13,000 new jobs. The sector had added an impressive 100,000 jobs in the last six months.

Our Choices

We have selected mutual funds from the sectors mentioned above. After all, job additions in such sectors mean that they are definitely on an expansionary mode.

These funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have an encouraging year-to-date return. Additionally, the minimum initial investment is within $5,000.

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