Given the urgency of the matter – and also because I missed my usual Wednesday report last week – I decided to issue an article for Sunday morning. Fundamentally, the official June jobs report may end up representing the beginning of a pivot away from a tight labor market to one that is conspicuously looser. If so, investors will want to consider positioning themselves in two soon-to-be relevant business services stocks.
On paper, last Friday’s jobs data showed that U.S. employers added 209,000 new opportunities last month. Notably, this tally represented a slowdown from May’s robust hiring of 306,000. Also, analysts had anticipated that the economy added 240,000 new jobs. Put another way, the headline print demonstrated that while labor force sentiment remained robust, the pace of growth appeared to decelerate.
