4 Funds To Gain From A Hearty Jobs Report

Employment data for the first month of 2019 exceeded expectations, as nonfarm payrolls surged by 304,000 despite the longest partial government shutdown in U.S. history. The unemployment rate, by the way, edged up to 4% in January, marking a possible reflection of the shutdown, the report cited.

In addition, the U6 unemployment rate rose to 8.1% in January from 7.6% in the month before, a Labor Department report cited. U6 is the total number of unemployed persons plus those into part-time jobs and those seeking jobs at irregular intervals.

Although the number of unemployed persons reached 6.5 million with the uptick in the unemployment rate, the jobs data was impressive and powerful given that economists were expecting a slowdown in growth this year.

Moreover, new job additions were broad-based in January as many industries posted impressive employment growth. According to the Labor department’s report, employment increased across leisure and hospitality, construction, health care, transportation and warehousing, professional and business services etc. This is why it is ideal to add some mutual funds to your portfolio that invest in several sectors that contributed the most to job gains this month.

Leisure & Hospitality

New job additions in the leisure & hospitality industry surpassed any other sector, with 74,000 new vacancies being created in January. Job gains occurred in restaurants and pubs, and other recreational places. In the span of a year, the sector has added 410,000 new jobs.

Construction

In January, 52,000 new jobs were added in the sector with job gains seen among specialty trade contractors, heavy and civil engineering construction, and residential building. Over the past year, construction has added 338,000 new jobs.

Healthcare

New job additions soared by 42,000 in the sector in January, taking its annual growth to 368,000. Employment rose in the healthcare sector as hospitals added new staff and ambulatory healthcare services sought new personnel.

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