What are resilient consumer stocks?

Resilient consumer stocks are companies that benefit from strong employment conditions and confident household spending. These include retailers like Costco, Target, and Lowe's that thrive when people feel secure in their jobs and increase both essential and discretionary purchases.

What does labour market strength mean?

Labour market strength refers to robust employment conditions, characterised by low jobless claims and job security. Recent U.S. data shows claims dropping to two-year lows, which directly translates into consumer confidence and increased spending power for households.

Why do employment levels affect consumer spending?

Strong employment creates a multiplier effect where secure workers make different purchasing decisions. When people feel confident about their jobs, they buy discretionary items, upgrade to premium brands, and make long-term commitments like home improvements, boosting various consumer sectors.

How to invest in resilient consumer stocks with small amounts?

You can invest in resilient consumer stocks through Nemo's fractional shares starting from just £1. This allows you to own portions of expensive stocks like Costco or Target without needing to buy full shares, making consumer investing accessible to beginners.

Best consumer stocks for strong job markets?

Top consumer stocks benefiting from employment strength include Costco (membership retail), Target (broad-based retail), and Lowe's (home improvement). Each captures different spending patterns whilst maintaining competitive positions in their sectors during periods of job market confidence.

Are consumer stocks risky investments?

Consumer stocks carry risks including economic cycles, competitive pressures, and changing shopping behaviours. Even with strong employment data, these businesses face operational challenges, inventory management complexities, and potential external shocks that can affect performance.

Should I diversify within consumer stocks?

Yes, diversification across different consumer business models helps manage risk. Combining value retailers, premium brands, home improvement, and essential goods providers offers multiple pathways to benefit from employment-driven spending whilst reducing exposure to any single sector.

When is the best time to buy consumer stocks?

Strong employment conditions create favourable timing for consumer investments. With U.S. jobless claims at two-year lows and consumer confidence expected to surge, current market conditions support businesses positioned to capture increased household spending power.

Why are jobless claims important for investors?

Falling jobless claims signal not just current employment strength but future spending potential. They're powerful predictors of consumer behaviour, as employed consumers create demand across essential goods, discretionary items, and premium products, driving investment opportunities.

How does Nemo help with consumer stock investing?

Nemo offers commission-free investing in resilient consumer stocks through its ADGM-regulated platform. The service provides AI-driven research, fractional shares from £1, and curated thematic portfolios that help investors access employment-driven consumer opportunities with professional analysis.

Consumer Spending Power Unleashed: The Labour Market Strength Play

• 5 min read

• Published on 17 January 2026

Hey! We are Nemo.

Nemo, short for Never Miss Out, is a mobile investment platform that delivers curated, data-driven investment ideas to your fingertips. It offers commission-free trading across stocks, ETFs, crypto, and CFDs, along with AI-powered tools, real-time market alerts, and themed stock collections called Nemes.

Download the App

Scan the QR code to download the Nemo app and start investing on Nemo today

Invest Today on Nemo

Consumer Spending Power Unleashed | Labour Market Investment

Summary

Strong US labour market data signals resilient consumer spending power.
Increased employment boosts consumer confidence, driving household demand.
Creates investment opportunities in resilient consumer stocks.
Sectors like retail, home improvement, and essential goods may benefit.

Zero commission trading

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Don't Bet Against the American Shopper Just Yet

For what feels like an eternity, the so called experts have been telling us a recession is just around the corner. They’ve been pointing at charts, muttering about yield curves, and generally forecasting economic doom. And yet, something rather inconvenient happened. The American worker decided to ignore them and just keep working. To me, this is the most overlooked story in the market right now.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

The Experts Got It Wrong, Again

Let’s be honest, predicting the economy is a bit like predicting British weather. You can have all the fancy equipment you like, but you’ll still get caught in the rain. While economists were debating the finer points of monetary policy, U.S. jobless claims quietly dropped to a two year low. This isn't just a number on a spreadsheet. It’s the bedrock of consumer confidence.

Think about it. When you’re not worried about losing your job next Tuesday, your entire mindset shifts. You stop hoarding tins of beans and start thinking about that holiday, that new television, or finally getting around to fixing the garden fence. A secure pay cheque is the ultimate fuel for an economy, and right now, that engine is running surprisingly hot. This isn't a statistical blip, it's a fundamental signal that the consumer might be in far better shape than we’ve been led to believe.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

So, Where Does the Money Go?

When people feel secure, their spending habits tell a fascinating story. It’s not just about buying more, it’s about buying differently. This creates a compelling landscape for investors who know where to look.

You see it play out across the retail spectrum. A giant like Costco, for example, thrives when households have a predictable income. It allows them to plan ahead, buying in bulk and stocking up for the month. Then you have retailers like Target, which cleverly mix everyday essentials with more discretionary temptations. One minute you’re in for toothpaste, the next you’re walking out with a new set of cushions and a lamp. This model could be perfectly positioned for a consumer who feels confident enough to add a few non essentials to their trolley. And what about home improvement? A place like Lowe’s often sees a boost when job security is high, because that’s when people commit to larger projects they’ve been putting off.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Beyond the Obvious Trolley Dash

This wave of confidence doesn't stop at the big retail parks. It ripples through the entire consumer economy. When people feel good, they might trade up to a more premium beauty brand. They might treat themselves more often, which benefits everyone from coffee shops to luxury goods makers. Even advertising firms may see a lift, as businesses compete more aggressively to capture a slice of this renewed spending power.

The key takeaway for me is that a strong labour market isn't a narrow trend that benefits a handful of companies. It's a broad, powerful tailwind that could lift a wide variety of boats. For those intrigued by this durability, exploring a basket of companies built to tap into this trend might be a logical step. A theme like Resilient Consumer Stocks | Labor Market Strength provides a focused lens on this very idea. Of course, no investment is a sure thing. The world remains a messy, unpredictable place, and even strong companies face stiff competition and shifting consumer tastes. A healthy dose of scepticism is always wise.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Deep Dive

Market & Opportunity

U.S. jobless claims have fallen to their lowest levels in two years, signalling exceptional employment strength.
Steady employment is expected to increase consumer confidence and boost household spending power.
Nemo's research identifies that this creates a compelling theme for Resilient Consumer Stocks | Labor Market Strength investment opportunities.
The opportunity covers a mix of companies, including value retailers, luxury brands, and essential goods providers.
The Nemo platform offers access to these companies through fractional shares, with investments starting from £1.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Key Companies

Costco Wholesale (COST): Operates a membership retail model focused on bulk purchasing, which appeals to households with steady, predictable incomes stocking up on essentials.
Target Corp. (TGT): A broad-based retailer that benefits from widespread employment strength due to its mix of essential goods and discretionary items.
Lowe's Companies Inc. (LOW): A home improvement retailer that sees sustained demand when confident, employed consumers are more likely to invest in home renovation projects.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Primary Risk Factors

Consumer spending is subject to change based on economic cycles, geopolitical events, or unexpected policy shifts.
Individual companies face competitive pressures, evolving consumer preferences, and operational challenges such as supply chain management.
Positive employment data can still be affected by market volatility and potential economic setbacks.
All investments carry risk and you may lose money.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Growth Catalysts

Strong employment data is a powerful predictor of confident consumer behaviour, which may lead to increased spending.
Employment security encourages consumers to spend more on both necessary and optional purchases, from essentials to premium brands.
As consumers feel more secure, they are more likely to commit to larger, long-term purchases related to durable goods and home improvements.
According to Nemo insights, the combination of strong employment and easing inflation may create a favourable environment for consumer-focused companies.

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

How to invest in this opportunity

View the full Basket:Resilient Consumer Stocks | Labor Market Strength

16 Handpicked stocks

Frequently Asked Questions

This article is marketing material and should not be construed as investment advice. No information set out in this article be considered, as advice, recommendation, offer, or a solicitation, to buy or sell any financial product, nor is it financial, investment, or trading advice. Any references to specific financial product or investment strategy are for illustrative / educational purposes only and subject to change without notice. It is the investor’s responsibility to evaluate any prospective investment, assess their own financial situation, and seek independent professional advice. Past performance is not indicative of future results. Please refer to our Risk Disclosure.

Consumer Spending Power Unleashed: The Labour Market Strength Play

Consumer Spending Power Unleashed: The Labour Market Strength Play

Recent insights

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio

Summary

Don't Bet Against the American Shopper Just Yet

The Experts Got It Wrong, Again

So, Where Does the Money Go?

Beyond the Obvious Trolley Dash

Deep Dive

Market & Opportunity

Key Companies

Primary Risk Factors

Growth Catalysts

How to invest in this opportunity

Frequently Asked Questions

Recent insights

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio

Boeing's F-15 Windfall: What $131 Billion Means for Defence Investors

Broadcom's $60-100bn Debt Gamble: What It Means for AI Chip Investors

Amazon's Drone Gamble: What 500 Cities Means for Investors

Samsung's 15% Foundry Price Hike: Korea's AI Chip Moment

Korea's Labour Peace Dividend: Why the Hyundai Wage Deal Matters to Your Portfolio