sports
US Jobs Rose 57,000 in June While Hospitality Fell 61,000
The Bureau of Labor Statistics reported a 61,000 decline in restaurant, bar and hotel employment for June. Overall US payrolls rose 57,000 while the unemployment rate stood at 4.2 percent. Downward revisions to prior months and analyst forecasts for World Cup gains were also detailed.
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US employment in restaurants, bars and hotels fell by 61,000 in June, the Bureau of Labor Statistics reported Thursday. Overall nonfarm payrolls rose 57,000 for the month, while the unemployment rate edged to 4.2 percent. The leisure and hospitality sector had added 44,000 jobs in May, according to the prior BLS release.
Goldman Sachs analysts had projected that the 2026 World Cup, hosted jointly by the United States, Canada and Mexico, would add around 40,000 positions in June. The BLS also revised April and May job gains downward by a combined 74,000. ING chief US economist James Knightley called leisure and hospitality a real area of weakness in the June figures.
Knightley said the decline was a major surprise given that the World Cup is occurring and bars and venues are busy. He noted that the lower-than-expected overall increase and the revisions suggest the prior three-month uptick may not mark the start of a new trend.
Susannah Streeter, chief investment strategist at Wealth Club, said the slowdown opens the door to a Goldilocks scenario for the US economy.
She added that only one interest rate hike is now fully priced in and not until next year.
