The latest June jobs report published by the Bureau of Labor Statistics showed an increase of 215,000 jobs–9.2 percent higher than original forecasts–with health services being one of the top beneficiaries of the increase.
The jobs report revealed that the education and health services sector represented the biggest net job gainer for June–54,000 new positions created. Of that number, about 25,000 came as a result of hiring in the health care sector.
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In addition, the sector added 309,000 jobs within the last year, including 11,000 hospital jobs in June alone.
The jobs growth in the sector boosted health care ETFs–Health Care Select Sector SPDR ETF (NYSEArca: XLV) gained 1.38 percent as of 12:30 p.m. Eastern Time, Vanguard Health Care ETF (NYSEArca:> VHT) was up 1.39 percent, iShares US Medical Devices ETF (IHI) was up 1.03 percent, and iShares US Healthcare ETF (NYSEArca: IYH) gained 1.43 percent.
Other notable industries getting a boost in the jobs report include professional and business services, as well as manufacturing. There was a slight uptick in unemployment in June to 4 percent after dropping to 3.8 percent in May, but market experts point to the growing participation rate as the root cause.
Nonetheless, all signs still point to a strong labor market.
“Perfect is the word for the jobs report. It was superb, literally nothing wrong with it,” said Phil Orlando, chief equity market strategist at Federated Investors. “Not only was the headline number better than expected, but there were positive revisions for the previous months. Meanwhile the rate of unemployment went up because of the growing participation rate, while at the same time wage inflation went down a tick. So we have a strengthening economy, with a strengthening labor market, with no runaway inflation. That’s all extremely positive for the equity market.”
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