The U.S. economy added 151,000 jobs in February 2025, better than the downwardly revised 125,000 in January but less than the 170,000-consensus forecast. The U.S. unemployment rate rose to 4.1% in February 2025, up from 4.0% in January and slightly surpassing market expectations of 4.0%.

Average hourly earnings climbed 0.3%, as expected, though the annual increase of 4% was a bit softer than the 4.2% forecast. The labor force participation rate also fell to 62.4%, and the employment-population ratio decreased to 59.9%.

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 February jobs data.

Sector ETFs in Focus

Healthcare

Health care added 52,000 jobs in November, in line with the average monthly gain of 54,000 over the past one year. In February, job growth continued in ambulatory health care services (+26,000), hospitals (+15,000), 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 31.51% exposure to the pharma industry, followed by 22.30% exposure to healthcare equipment & supplies, 19.75% exposure to the healthcare providers & services industry, 17.11% focus on the biotech sector and 9.33% 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 5.86%, on average.

Real Estate

Employment in financial activities increased 21,000 in February, above the prior 12-month average gain (+5,000). Over the month, employment continued to trend up in real estate and rental and leasing (+10,000) and insurance carriers and related activities (+5,000). However, commercial banking lost 5,000 jobs.

Vanguard Real Estate ETF VNQ seeks to track the performance of the MSCI US Investable Market Real Estate 25/50 Index. The fund yields 3.72% annually and charges 13 bps in fees.

Newmark Group NMRK, which has a Zacks Rank #1, operates as a commercial real estate advisory firm. The Company offers services and products which includes investment sales, debt and structured finance and loan sales, agency leasing, property management, valuation and advisory and loan servicing.

Transportation

Employment in transportation and warehousing rose by 18,000 in February, in line with the average monthly gain over the prior 12 months (+13,000). In February, job growth occurred in couriers and messengers (+24,000) and air transportation (+4,000).

Zacks Rank #3 SPDR S&P Transportation ETF XTN can thus be considered for a play. The fund yields 1.01% annually.

FedEx FDX, 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.

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FedEx Corporation (FDX) : Free Stock Analysis Report

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

Vanguard Real Estate ETF (VNQ): ETF Research Reports

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

SPDR S&P Transportation ETF (XTN): ETF Research Reports

Newmark Group, Inc. (NMRK) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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