The U.S. economy added 12,000 jobs in October, down sharply from September and below the Dow Jones estimate for 100,000, as quoted on CNBC. The Boeing strike likely have withdrawn 44,000 jobs in the manufacturing sector, while hurricanes also likely to have weighed on the total job creation.

Hurricanes Helene and Milton impacted the Southeast – Florida and North Carolina in particular – while the Boeing strike also hit the labor market. Recent developments indicate that the Boeing standoff could be nearing an end.

Health care and government again led job creation. But one of the leading sectors so far, leisure and hospitality, reported a decline of 4,000, while retail trade and transportation and warehousing also saw moderate drops.

The unemployment rate in the United States was at 4.1% in October of 2024, remaining unchanged from the three-month low in the prior month, and aligned with market expectations. In October, average hourly earnings for all employees on private nonfarm payrolls rose by 13 cents, or 0.4%, to $35.46.

Over the past 12 months, average hourly earnings have increased by 4.0%. In October, average hourly earnings of private-sector production and nonsupervisory employees rose by 12 cents, or 0.4%, to $30.48.

Revisions also lowered previously reported job creation totals by 112,000 for August and September combined. The slower job growth could be good news on the inflation front but cause economic slowdown.

Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the October jobs data.

Sectors in Focus

Healthcare

Employment in the healthcare industry increased by 52,000 in jobs, in line with the average monthly gain of 58,000 over the past one year. Over the month, employment rose in ambulatory health care services (+36,000) and nursing and residential care facilities (+9,000).

The Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum. Tenet Healthcare THC, which has a Zacks Rank #1 deserves a mention. It is an investor-owned health care services company, which owns and operates general hospitals and related health care facilities for urban and rural communities in numerous states, and has offices in California and Florida.

Construction

In October, employment in construction (+8,000). The industry had added an average of 20,000 jobs per month over the prior 12 months. Over the month, nonresidential specialty trade contractors added 14,000 jobs. 

Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF PKB. The fund PKB is comprised of stocks of U.S. building and construction companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.

As far as the stock is concerned, Zacks Rank #2 Dycom Industries DY is a top bet. It is a leading provider of specialty contracting services throughout the United States.

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Tenet Healthcare Corporation (THC) : Free Stock Analysis Report

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