???The March 2025 U.S. jobs report revealed a robust addition of 228,000 jobs, surpassing economists’ expectations of 140,000 and the 12-month average of 158,000. Average hourly earnings increased 0.3% on the month, in line with the forecast, while the annual rate of 3.8%, the lowest level since July 2024.
Notably, the services sector, particularly healthcare and transportation, experienced significant growth. However, the unemployment rate moved up to 4.2%, higher than the 4.1% forecast as the labor force participation rate also increased.
However, this positive employment data coincides with economic uncertainties stemming from newly enacted tariffs by the Trump administration and retaliatory measures by China. These developments have raised concerns about inflation and potential economic slowdown.
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 March jobs data.
Sector ETFs in Focus
Healthcare
Health care added 54,000 jobs in March, in line with the average monthly gain of 52,000 over the prior 12 months. Over the month, employment continued to trend up in ambulatory health care services (+20,000), hospitals (+17,000), and nursing and residential care facilities (+17,000).
Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF (XLV – Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 22.32% exposure to the healthcare providers & services industry, about 22% focus on Health Care Equipment & Supplies, 17.1% focus on the biotech sector and 8.7% focus on the life sciences tools & services.
HCA Healthcare (HCA – Free Report) , 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 5.86%, on average.
Transportation
Employment in transportation and warehousing rose by 23,000, about double the prior 12-month average gain of 12,000. In March, job gains in couriers and messengers (+16,000) and
truck transportation (+10,000). These were partially offset by a job loss in warehousing and storage (-9,000).
Zacks Rank #3 (Hold) SPDR S&P Transportation ETF (XTN – Free Report) can thus be considered for a play. The fund yields 1.19% annually.
FedEx (FDX – Free Report) , a Zacks Rank #3 stock, is the leader in global express delivery services. The company provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. This is a good stock pick in this context.
Retail
Employment in the retail sector increased 24,000 in March, as workers returning from a strike contributed to a job gain in food and beverage retailers (+21,000). Employment in retail trade changed little over the year.
Invesco Food & Beverage ETF (PBJ – Free Report) is comprised of stocks of 30 U.S. food and beverage companies. These are companies that are principally engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. The fund charges 62 bps in fees and yields 1.51% annually.
Sprouts Farmers Market (SFM – Free Report) , which has a Zacks Rank #2 (Buy), which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness.
Financial Market Newsflash
No financial news published today. Check back later.
