Although the US Men's National Football Team has recently been successful, a current labour market report from the US Bureau of Labor Statistics (BLS) paints a nuanced picture for the hospitality sector. Following the last monthly report, there were positive expectations that jobs in the hospitality and leisure sector would flourish due to an anticipated tourism boom from the 2026 FIFA World Cup.
Nevertheless, the new BLS report, published on Thursday, showed a decline of 61,000 jobs in these sectors in June. This is interpreted as “weaker than usual seasonal hiring”. The sobering reality is notable, as the tournament, co-hosted by the USA, Canada, and Mexico, promised significant economic impetus.
Unexpected Development in New York
Had one only taken the enthusiasm of Scottish fans visiting Boston for the 2026 World Cup as a benchmark, a nationwide upturn in the hospitality sector would have been considered certain. However, revenues from hotel bookings in the greater New York area, where matches are scheduled to take place at MetLife Stadium in New Jersey, have so far been lower. Hotels in New York City are now expected to generate between $100 million and $150 million – about half of the initial estimate by the Hotel Association of New York City.
Although the city's hotel industry recorded an occupancy rate of over 90 per cent in June, the association attributed this to the playoff games and the subsequent championship win of the New York Knicks, not to the FIFA World Cup. Overall, the decline in hiring in the hospitality and leisure sector was the largest since 2020, as reported by Bloomberg.
Broader Labour Market Trends
In June, only 57,000 new non-agricultural jobs were created in total, a significant drop from the 129,000 jobs in May. The May figure was revised downwards by 43,000 in June, making it now lower than the 172,000 jobs previously reported by the BLS. April's figures were also revised downwards by 31,000 jobs. The strongest sectors for new hires in June were healthcare and social assistance.
Overall labour force participation fell by 0.3 percentage points to 61.5 per cent in June, while the employment-population ratio decreased by 0.2 percentage points to 59 per cent. The unemployment rate remained stable at 4.2 per cent in June, compared to 4.3 per cent in May. In total, approximately 7.1 million people were unemployed in June.
