Employment in the U.S. leisure and hospitality sector declined in June, defying expectations that the ongoing World Cup would stimulate job growth. The sector lost 61,000 jobs last month, according to data from the Bureau of Labor Statistics (BLS).
This downturn contrasts with earlier indicators, as the BLS had reported signs of a jobs boom in May, with bars and restaurants increasing hiring in anticipation of the international soccer tournament. Analysts from Goldman Sachs had projected the World Cup to contribute approximately 40,000 jobs in June.
Despite anecdotal reports of busy venues and increased fan activity, the sector's performance reversed course. James Knightley, chief U.S. economist at ING, described leisure and hospitality as a "real area of weakness" in the June figures, calling the decline "a bit of a surprise given the World Cup is on and bars and venues are busy."
While the sector did see a 44,000 job increase in May, the June decline was unexpected, according to Knightley. The overall U.S. employment saw a gain of 57,000 jobs in June, with the unemployment rate decreasing slightly to 4.2%.