The US economy created 172,000 jobs in May — far more than the 105,000 economists had expected — as pubs, bars and restaurants ramped up hiring in preparation for this summer’s World Cup, according to the Bureau of Labor Statistics. The leisure and hospitality sector alone added 70,000 positions, a dramatic leap from its average monthly increase of 14,000 over the previous year. Firms selling food and drink were responsible for 48,000 of those hires.
Rehan Alam, who owns The Red Lion pub and restaurant in downtown New York City, has hired seven extra bartenders to manage the anticipated surge in attendance when the tournament begins next week. “Four years ago, when we had the World Cup, we didn’t expect it to get that crazy, and it did,” he told the BBC. “It brought a lot of attention to what we’ve always been trying to do with the soccer.”
“US created 172,000 jobs in May, mostly in hospitality, as bars hire ahead of World Cup.”
Alam has installed seven new televisions, paid sound engineers to prepare the venue, and “beefed up the staffing quite a bit”. The boost is “definitely needed”, he said, as businesses grapple with rising costs amid the fallout from the US-Israel war with Iran. “Our costs have skyrocketed,” he added, pointing to higher energy bills and other charges being passed through. “A boost like this is definitely going to give us that uplift of spirits.”
The better-than-expected figures marked the third consecutive month that US jobs data has beaten forecasts. Hiring in March and April was also revised up by a combined 93,000, showing the labour market was even more resilient than first thought. The overall unemployment rate held at 4.3%.
But while hiring is up ahead of the World Cup, there are concerns that a subsequent economic boost will not materialise due to sky-high prices facing fans. Hotels have warned of slow bookings, and supporters have complained about being priced out of the tournament. US President Donald Trump, asked about a $1,000 (£736) ticket price to watch his country play Paraguay in June, declared he “wouldn’t pay it either”.
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.