Source: Fortune
Summary
The expected hiring boom in the US due to the FIFA World Cup has not materialized. Despite predictions of 185,000 full-time jobs, the latest jobs report showed a decline in leisure and hospitality jobs in June, with employment in the sector down by 21,000 over the past two months. The tournament was expected to bring relief to the tourism industry, but expensive accommodations and match tickets may have limited international travel. US hotels posted record revenue per available room, but the improvement was driven by higher room rates rather than more guests.
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The numbers tell one story.
The World Cup’s expected hiring boom didn’t happen. Instead, leisure and hospitality jobs declined in June. Eli Nir, a US economist at TD Securities, attributes this to geopolitical tensions, higher airfares, and other barriers limiting international travel. Hotels posted record revenue per available room, but mainly due to higher room rates. The US hotel industry had warned of softer demand, and some businesses are favoring overtime for existing employees rather than adding new ones.
The World Cup’s economic impact is being reframed as a “business-as-usual” scenario.
Author: Evan Null
