The anticipated job boom in the US hospitality sector due to the World Cup has not occurred, with a surprising decline of 61,000 jobs in restaurants, bars, and hotels in June. Despite expectations that the tournament, co-hosted by the US, Canada, and Mexico, would boost employment, overall job growth was lower than predicted, with only a 57,000 increase. The unemployment rate slightly decreased to 4.2%. Analysts had previously forecasted a positive impact, with Goldman Sachs predicting a 40,000 job increase. However, the leisure and hospitality sector, which saw a 44,000 job rise in May, experienced a downturn. This unexpected outcome, coupled with downward revisions of job growth in April and May, suggests that the recent job uptick may not indicate a lasting trend. The figures also reduce the likelihood of an imminent interest rate hike. Susannah Streeter from Wealth Club suggests this slowdown could lead to a balanced economic scenario, with fewer rate hikes expected.
QUESTION: Why do you think the World Cup did not lead to the expected increase in hospitality jobs in the US?
World Cup boom falters as US hospitality jobs fall in June
