Pubs, bars and restaurants across the United States are ramping up hiring at a pace not seen in years – and the World Cup is the reason. The US economy created 172,000 jobs in May, far exceeding the 105,000 economists had forecast, according to the Bureau of Labor Statistics. It was the third consecutive month that jobs figures have beaten expectations, with gains concentrated in leisure and hospitality, local government and healthcare.
Leisure and hospitality businesses added 70,000 positions in May – a dramatic jump from the average monthly increase of 14,000 over the previous year. Of those, 48,000 came from firms selling food and drink, as businesses prepare for the tournament being jointly hosted by the US, Mexico and Canada this summer.
“US created 172,000 jobs in May, beating forecasts, driven by World Cup hospitality hiring.”
“Four years ago, when we had the World Cup, we didn't expect it to get that crazy, and it did,” said Rehan Alam, owner of The Red Lion pub and restaurant in downtown New York City. Alam has hired seven extra bartenders to manage an expected surge in attendance when the tournament begins next week. He has also installed seven new televisions and paid sound engineers to prepare the venue. “We beefed up the staffing quite a bit.”
The boost comes as businesses grapple with rising costs linked to the US-Israel war with Iran. Alam said costs have “skyrocketed” from direct energy expenses to other charges passed through in bills. “A boost like this is definitely going to give us that uplift of spirits.”
Figures for March and April were also revised up by a combined 93,000, showing hiring was even more resilient than first thought. Employment in the financial sector dropped, while the unemployment rate held steady at 4.3%.
Yet concerns are mounting that the pre-tournament hiring spree may not translate into a sustained economic lift. Hotels have reported slow bookings, and fans have complained about being priced out. US President Donald Trump said he “wouldn't pay it either” when asked about a $1,000 (£736) ticket to watch the US play Paraguay in June.
Fifa is now facing allegations of artificially inflating prices and misleading fans. The attorneys general of New York and New Jersey have launched an investigation into the governing body's practices. Fifa declined to comment on the investigation.