Global X ETF Model Portfolio TeamNon-farm payrolls expanded by 151K in February. While this was slightly below expectations of 160K, it was a reassuring reading. Given the weak ADP Jobs report and the high level of Challenger job losses, there was concern that this reading may come in far lower than initially expected. Tariff rhetoric and the reduction in headcount within government services raised concerns about business confidence and the impact on hiring decisions. This NFP reading helps allay some of those fears.
From a market perspective, this reading provided reassurance to both the equity and fixed income markets. While there’s still growth, this was not a hot reading. As such, there were less inflation concerns for fixed income investors, while abating recession concerns for equity investors.
Healthcare led the job gains this month, adding 63K. This area has been a major driver of job growth over the last 12 months. Conversely, Leisure & Hospitality was a key area of job losses in both January and February, with these losses predominantly from Restaurants. This is an area we’ll continue to monitor as we assess the resilience of the U.S. consumer and economy.
