The United States economy added 172,000 jobs in May, driven largely by a sharp rise in hiring across pubs, bars, restaurants and other hospitality businesses preparing for the upcoming FIFA World Cup, according to fresh data released by the Bureau of Labor Statistics (BLS). The stronger-than-expected employment growth reflected the economic momentum generated ahead of the tournament, which is being jointly hosted this summer by the US, Mexico and Canada.
The latest figures showed that leisure and hospitality businesses accounted for the largest share of new jobs, adding 70,000 positions during the month. This was significantly higher than the sector’s average monthly increase of 14,000 jobs recorded over the previous year. Establishments involved in food and beverage services alone contributed 48,000 new jobs, underlining the scale of preparations underway for the international football tournament.
Apart from hospitality, employment gains were also seen in local government and healthcare. Local government agencies added 55,000 jobs, while the healthcare sector created another 35,000 positions during the month. Additional gains were reported in social assistance services, mining, quarrying, and oil and gas extraction.
The unemployment rate remained unchanged at 4.3%, indicating continued stability in the labour market despite concerns over inflation and rising business costs. Economists had expected the US economy to add around 105,000 jobs in May, making the actual increase far stronger than forecasts. The BLS also revised hiring numbers for March and April upward by a combined 93,000 jobs, suggesting the labour market has remained more resilient than previously estimated.
Business owners in major cities are preparing for a substantial increase in customer footfall once the World Cup begins next week. Rehan Alam, owner of The Red Lion pub and restaurant in downtown New York City, said he had hired seven additional bartenders to manage the expected crowds during the tournament. According to Alam, the venue witnessed overwhelming attendance during the previous World Cup held in Qatar four years ago, and this year’s tournament is expected to attract even larger crowds due to matches being hosted nearby in New Jersey.
Alam said the business has installed seven new television screens, upgraded its sound systems and increased staffing levels considerably in anticipation of heavy demand from football fans. He added that the expected surge in customers would provide much-needed relief to hospitality businesses struggling with soaring operational costs linked to the ongoing US-Israel conflict involving Iran.
According to him, rising energy costs and additional supply-related expenses have sharply increased overall business expenditure in recent months. He said the World Cup-related boost would help improve business sentiment and provide temporary financial support to firms facing mounting economic pressure.
Despite the positive jobs data, concerns remain over whether the World Cup will deliver a sustained economic boost. Reports of high ticket prices and expensive accommodation have raised fears that many fans may be unable to attend matches. Several hotels have reportedly experienced slower-than-expected bookings, while supporters have criticised the steep costs associated with the tournament.
The issue gained further attention after US President Donald Trump commented on reports of a $1,000 ticket price for a match between the United States and Paraguay, saying he “wouldn’t pay it either”. FIFA is also facing allegations of artificially inflating ticket prices and misleading consumers, with the attorneys general of New York and New Jersey launching investigations into the governing body’s ticketing practices. FIFA has declined to comment on the matter.
Meanwhile, economists said the strong employment figures could strengthen the case for another interest rate hike before the end of 2026. However, experts also warned that slowing wage growth and persistently high inflation are placing increasing pressure on household finances. Average hourly earnings rose by 3.4% over the past year, while inflation currently stands at 3.8%.
The rise in inflation has largely been linked to soaring global energy prices following disruptions caused by the Iran conflict, including the prolonged closure of the Strait of Hormuz shipping route. Analysts warned that consumer confidence remains weak as households continue to face higher living costs.
James Knightley, chief US economist at ING, said household spending power has weakened considerably in recent months, with real disposable incomes declining for three consecutive months. He added that while markets are currently considering the possibility of further interest rate hikes, future rate cuts could still be possible if geopolitical tensions ease and global shipping routes reopen.
The BLS report also highlighted weakness in the financial sector, which lost 22,000 jobs in May. Overall, financial services employment has fallen by 105,000 positions since reaching a peak in May last year.
