World Cup boom falters as US hospitality jobs fall in June
✓A World Cup jobs boom in the US has failed to materialise, with employment in restaurants, bars and hotels falling in June.
Analysts had expected the tournament, being hosted jointly by the US, Canada and Mexico, to lead to an increase in leisure and hospitality jobs.
But the sector saw a decline of 61,000 jobs last month, the Bureau of Labor Statistics (BLS) said on Thursday.
Overall employment in the US rose by 57,000 in June, which was lower than expected, while the unemployment rate dipped slightly to 4.2%.
The BLS's previous release reported early signs of a jobs boom in May, with bars and restaurants ramping up hiring to prepare for the World Cup.
And a report by Goldman Sachs analysts expected June's figures to show the competition boosting employment by around 40,000 jobs.
But, despite reports of travelling football fans drinking bars across the US dry, the growth went into reverse in June.
ING's chief US economist James Knightley said leisure and hospitality was a "real area of weakness" in Thursday's figures.
He added that the decline was "a major surprise given the World Cup is on and bars and venues are busy".
"Admittedly, this sector had seen a 44,000 jump in May, but even so that is a surprising outcome," he told the BBC.
Thursday's jobs report included significant downward revisions to increases reported in previous months, with the number of jobs created in April and May now 74,000 lower than the BLS thought.
Knightley said June's lower-than-expected overall increase, combined with the downward revisions, suggest "the decent uptick in jobs over the previous three months is not necessarily the start of a new trend".
He added the figures make an interest rate hike later this month less likely.
Susannah Streeter, chief investment strategist at Wealth Club, said the slowdown in jobs growth opens the door to a "Goldilocks scenario" for the US economy, in which it could stay "not too hot, but not too cold".
"Expectations of multiple rate hikes are fading away, with only one hike now fully priced in, and not until next year," she added.
The World Cup, jointly hosted by the US, Canada and Mexico, was expected to generate additional leisure and hospitality employment in June. However, restaurants, bars and hotels saw employment decline by 61,000 jobs that month, according to the Bureau of Labor Statistics. This reversal surprised economists, particularly given May's 44,000-job increase in the sector and visible tournament activity across venues. Goldman Sachs analysts had forecast the World Cup would add approximately 40,000 hospitality jobs in June. Overall US employment growth reached 57,000 jobs in June, below expectations, while unemployment fell slightly to 4.2%. The report also included significant downward revisions to prior months' figures, reducing April and May job creation counts by 74,000 combined. These developments have shifted market expectations around potential interest rate decisions.
A World Cup jobs boom in the US has failed to materialise, with employment in restaurants, bars and hotels falling in June.
Analysts had expected the tournament, being hosted jointly by the US, Canada and Mexico, to lead to an increase in leisure and hospitality jobs.
But the sector saw a decline of 61,000 jobs last month, the Bureau of Labor Statistics (BLS) said on Thursday.
Overall employment in the US rose by 57,000 in June, which was lower than expected, while the unemployment rate dipped slightly to 4.2%.
The BLS's previous release reported early signs of a jobs boom in May, with bars and restaurants ramping up hiring to prepare for the World Cup.
And a report by Goldman Sachs analysts expected June's figures to show the competition boosting employment by around 40,000 jobs.
But, despite reports of travelling football fans drinking bars across the US dry, the growth went into reverse in June.
ING's chief US economist James Knightley said leisure and hospitality was a "real area of weakness" in Thursday's figures.
He added that the decline was "a major surprise given the World Cup is on and bars and venues are busy".
"Admittedly, this sector had seen a 44,000 jump in May, but even so that is a surprising outcome," he told the BBC.
Thursday's jobs report included significant downward revisions to increases reported in previous months, with the number of jobs created in April and May now 74,000 lower than the BLS thought.
Knightley said June's lower-than-expected overall increase, combined with the downward revisions, suggest "the decent uptick in jobs over the previous three months is not necessarily the start of a new trend".
He added the figures make an interest rate hike later this month less likely.
Susannah Streeter, chief investment strategist at Wealth Club, said the slowdown in jobs growth opens the door to a "Goldilocks scenario" for the US economy, in which it could stay "not too hot, but not too cold".
"Expectations of multiple rate hikes are fading away, with only one hike now fully priced in, and not until next year," she added.
The World Cup is being hosted jointly by the US, Canada and Mexico Employment in restaurants, bars and hotels fell by 61,000 jobs in June The Bureau of Labor Statistics released this data on Thursday May saw a 44,000 job increase in bars and restaurants Overall US employment rose by 57,000 in June The unemployment rate was 4.2% in June Goldman Sachs analysts expected the World Cup to boost employment by around 40,000 jobs in June The June decline was a surprise given the World Cup's visible activity in bars and venues April and May figures were revised downward by 74,000 jobs combined The slower job growth and downward revisions suggest recent employment gains may not indicate a new sustained trend Slower jobs growth makes an interest rate hike later in the month less likely The jobs slowdown could support a 'Goldilocks scenario' for the economy
- US leisure and hospitality employment fell by 61,000 jobs in June despite the World Cup tournament being hosted in North America
- Analysts had predicted the World Cup would boost hospitality hiring by around 40,000 jobs, but the sector declined instead
- Overall US employment rose only 57,000 in June, below expectations, with the unemployment rate at 4.2%
- May had shown a 44,000 job gain in bars and restaurants as World Cup preparation began, suggesting the June decline was unexpected
- Downward revisions to April and May figures by 74,000 jobs total suggest recent job growth may not indicate a sustained trend
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