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May job growth exceeds expectations
The U.S. economy added 172,000 jobs in May, surpassing economists' forecasts of 105,000, as bars, restaurants, and local governments stepped up hiring ahead of this summer's World Cup, the Bureau of Labor Statistics (BLS) reported.
Hospitality leads hiring surge
Leisure and hospitality businesses accounted for 70,000 new positions, a sharp increase from the sector's average monthly gain of 14,000 over the past year. Food and drink establishments alone contributed 48,000 jobs, the BLS noted.
Local government employment rose by 55,000, while healthcare added 35,000 roles. Smaller gains were recorded in social assistance, mining, quarrying, and oil and gas extraction.
Financial sector sheds jobs
In contrast, financial services employment fell by 22,000, extending a year-long decline that has seen the sector lose 105,000 jobs since its peak in May 2025.
Unemployment steady despite economic pressures
The national unemployment rate remained unchanged at 4.3%, even as businesses grapple with rising costs linked to the U.S.-Israel conflict with Iran. Revised figures for March and April showed an additional 93,000 jobs were created during those months, underscoring stronger-than-expected labor market resilience.
World Cup hiring boom faces skepticism
While hiring has accelerated in anticipation of the tournament-co-hosted by the U.S., Mexico, and Canada-analysts warn that high prices may dampen the expected economic boost. Hotels report sluggish bookings, and fans have criticized ticket costs, with some matches priced at $1,000 or more.
"I wouldn't pay it either,"
U.S. President Donald Trump, commenting on a $1,000 ticket for a U.S. match against Paraguay
FIFA is under investigation by the attorneys general of New York and New Jersey over allegations of price inflation and misleading fans. The organization declined to comment on the probe.
Outlook remains uncertain
Despite the robust May figures, concerns persist about whether the hiring momentum can be sustained amid persistent inflation and geopolitical tensions. Economists will closely monitor consumer spending and business confidence in the coming months.
