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Strong US jobs market, which ASX shares will benefit?

The latest US jobs market was strong yet again in November 2019.

Despite the ongoing trade war between the US and China, the world’s biggest economy added 266,000 jobs in November with the unemployment rate dropping to 3.5% from 3.6%.

It was quite an amazing performance when you consider this comes on the back of a decade-long recovery after the GFC.

High employment should mean higher consumer spending, low bad debts for banks, good housing construction and so on.

So which share investments would be good ideas to think about?

I think the best options are exchange-traded funds (ETFs) focused on US-listed shares like Vanguard US Total Market Shares Index ETF (ASX: VTS) and iShares S&P 500 ETF (ASX: IVV). That way you get plenty of exposure to US giants like Microsoft, Amazon and Berkshire Hathaway and you also get specific exposure to the US economy based on the smaller holdings.

Looking at individual shares, James Hardie Industries plc (ASX: JHX) is a global building materials which specialises in ‘fiber cement’ products. Its products are used for a variety of uses including new residential construction (single and multi-family housing), manufactured housing, repair and remodelling and other commercial & industrial applications.

A lot of investors are pinning the future success of Afterpay Touch Group Ltd (ASX: APT) on its US growth, so a strong US retail sector is good for Afterpay.

Brickworks Limited (ASX: BKW) is another ASX company that has a US segment that could become a large part of its cash generation in the future.

The US division of Credit Corp Group Limited (ASX: CCP) is growing strongly, it’s benefiting from a booming economy.

Aerial imaging company Nearmap Ltd (ASX: NEA) is another business that’s seeing strong growth from its US segment.

Foolish takeaway

Plenty of the above businesses have exciting US divisions which are benefiting from the strong US economy. Of the above shares I’d be most likely to buy Brickworks because of its strong underlying assets, but specifically for US exposure I think iShares S&P 500 ETF would be my choice.

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Brickworks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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