The U.S. economy added 227,000 jobs in November 2024, registering a strong recovery from the upwardly revised 36,000 gains in October, which was heavily affected by Boeing strikes and the disruptions caused by Hurricanes Helene and Milton. Figures came better than forecasts of 200,000.

Figures for September were also revised up and with these revisions, employment in September and October combined is 56K higher than previously reported. In 2024, payroll employment increase by an average of 186K, per tradingeconomics.

Notable employment in November was noticed in health care (54K), leisure and hospitality (53K), government (33K), and social assistance (19K). Also, employment increased in transportation equipment manufacturing (32K), reflecting the return of workers who were on strike.

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 November jobs data.

Sector ETFs in Focus

Healthcare

Health care added 54,000 jobs in November, in line with the average monthly gain of 59,000 over the past one year. In November, ambulatory health care services added 22,000 jobs, led by a gain of 16,000 in home health care services. Employment also increased in hospitals (+19,000) and nursing and residential care facilities (+12,000). 

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.

HCA Healthcare HCA, 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 9.02%, on average.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Restaurant

Employment in leisure and hospitality went up in November (+53,000), following little change in the prior month (+2,000). Over the month, employment trended up in food services and drinking places (+29,000). Leisure and hospitality had added an average of 21,000 jobs per month over the prior 12 months.

AdvisorShares Restaurant ETF EATZ is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenue from the restaurant business. The company has a trailing four-quarter earnings surprise of 4.16%, on average.

Brinker International EAT, which has a Zacks Rank #1, owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company has a trailing four-quarter earnings surprise of 12.10%, on average.

Manufacturing

Employment increased by 32,000 in transportation equipment manufacturing in November, reflecting the return of workers who were on strike.

Industrial Select Sector SPDR ETF XLI is a good pick here. The underlying Industrial Select Sector Index includes companies from the following industries: industrial conglomerates; aerospace & defense; machinery; air freight & logistics; road & rail; commercial services & supplies; electrical equipment; construction & engineering; building products; airlines; and trading companies & distributors.

Cummins CMI, which has a Zacks Rank #2, is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products.

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Brinker International, Inc. (EAT) : Free Stock Analysis Report

Cummins Inc. (CMI) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

Industrial Select Sector SPDR ETF (XLI): ETF Research Reports

Health Care Select Sector SPDR ETF (XLV): ETF Research Reports

AdvisorShares Restaurant ETF (EATZ): ETF Research Reports

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