The US economy created 172,000 jobs in May, beating expectations for a third consecutive month — a surge driven largely by pubs, bars and restaurants ramping up hiring ahead of the World Cup.
The Bureau of Labor Statistics (BLS) said leisure and hospitality businesses added 70,000 jobs in May, a dramatic jump from the average monthly increase of 14,000 over the prior year. Firms selling food and drink specifically were responsible for 48,000 of those roles.
“US added 172,000 jobs in May as hospitality boomed ahead of the World Cup, defying expectations for third month.”
Rehan Alam, who owns The Red Lion pub and restaurant in downtown New York City, has hired seven extra bartenders to manage an expected surge in attendance when the tournament begins next week. He told the BBC the business was overwhelmed when the World Cup was held in Qatar four years ago, and expects an even bigger boost this time because the event is being hosted in nearby New Jersey.
"Four years ago, when we had the World Cup, we didn't expect it to get that crazy, and it did. It brought a lot of attention to what we've always been trying to do with the soccer," he said. Alam has installed seven new TVs, paid sound engineers and "beefed up the staffing quite a bit".
The boost is "definitely needed" as firms grapple with rising costs stemming from the US-Israel war with Iran. "Our costs have skyrocketed," Alam said, pointing to direct energy costs and other charges being passed through in bills. "A boost like this is definitely going to give us that uplift of spirits."
Employment in the financial sector dropped, while the overall unemployment rate held at 4.3%. Economists had expected a 105,000 increase, less than the 172,000 seen. The number of jobs created in March and April was also revised up by a combined 93,000, showing hiring was even more resilient than first thought.
Yet concerns have been raised that the pre-tournament hiring spree may not translate into a sustained economic boost due to sky-high prices facing fans. Hotels have warned of slow bookings, and fans have complained at being priced out, with US President Donald Trump declaring he "wouldn't pay it either" when asked about a $1,000 (£736) ticket to watch his country play Paraguay in June. FIFA is facing allegations of "artificially inflating prices" and "misleading fans", with the attorneys general of New York and New Jersey launching an investigation into the governing body's practices. At the time, FIFA declined to comment on the investigation.