Hospitality jobs boom as US prepares for World Cup

The US economy created 172,000 jobs in May as pubs, bars and restaurants ramped up hiring ahead of the World Cup.

They were primarily created in leisure and hospitality, local government, and health care, according to the Bureau of Labor Statistics (BLS).

The figures cover the lead-up to this summer's tournament, being jointly hosted by the US, Mexico and Canada.

Employment in the financial sector dropped, while the overall unemployment rate held at 4.3%.

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 World Cup begins next week.

He told the BBC the business was overwhelmed when the tournament was held in Qatar four years ago, and he expects an even bigger boost due to it 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 to prepare the venue and "beefed up the staffing quite a bit".

Alam said the boost is "definitely needed" as firms grapple with rising costs amid the fallout from the US-Israel war with Iran. "Our costs have skyrocketed," he said, pointing to everything from direct energy costs to other charges being passed through in bills.

"A boost like this is definitely going to give us that uplift of spirits," he added.

The BLS said leisure and hospitality businesses created 70,000 jobs in May, a jump from the average monthly increase of 14,000 for the prior year.

Firms selling food and drink specifically were responsible for 48,000 of those, it added.

The boost helped continue a trend of the US economy creating significantly more jobs than expected despite the rising costs facing businesses as a result of the US-Israel war with Iran.

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.

There have been concerns raised that while hiring is up ahead of the World Cup, a subsequent economic boost will not follow due to sky-high prices facing fans.

Hotels have warned of slow bookings, while fans have complained at being priced out of the tournament, with US President Donald Trump declaring he "wouldn't pay it either" when asked about a $1,000 (£736) ticket price to watch his country play Paraguay in June.

Fifa is facing allegations of "artificially inflating prices" and "misleading fans", with the attorney generals 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.

Economists said the strong jobs figures boost the chances of an interest rate hike by the end of 2026, while pointing to slowing wage growth as a sign household finances are increasingly under pressure.

The BLS said average hourly earnings had risen by 3.4% in the last year, while inflation in the US, the rate at which prices are increasing, is running at 3.8%.

The rise in inflation has been driven largely by soaring energy prices caused by the Iran war, which has led to the key Strait of Hormuz shipping lane being effectively closed for months.

ING's chief US economist James Knightley said: "The squeeze on household spending power is intensifying with real household disposable incomes having fallen for three consecutive months and consumer confidence remaining close to all-time lows.

"There is a long way to go before the end of the year, and we still lean in the direction of eventual rate cuts assuming a deal can be reached to reopen the Strait of Hormuz."

Employment in local government rose by 55,000 jobs across the month, while 35,000 jobs were created in the healthcare sector.

Elsewhere, gains were seen in social work as well as mining, quarrying and oil and gas extraction, the BLS said.

It pointed to a 22,000 fall in the number of financial services jobs, which have fallen by 105,000 overall from a peak last May.