Help not wanted: World Cup hiring boost has yet to materialize

Washington DC, United States Jul 11, 2026 ALN: The hiring boom the FIFA World Cup was expected to bring to the US looks like it may not end up materializing after all. The anticipation surrounding this global sporting event, which is one of the largest and most-watched tournaments in the world, created high expectations for economic stimulation, particularly in sectors such as leisure and hospitality. However, as the tournament progresses, it appears that the anticipated job growth has not materialized as hoped.

Ahead of the June 11 kickoff of the soccer tournament, the first in the US since 1994, FIFA predicted the events could create the equivalent of 185,000 full-time jobs, primarily in leisure and hospitality. This prediction was based on the influx of visitors and the associated demand for services in host cities. Many Wall Street banks anticipated a smaller yet still-substantial boost, projecting that the World Cup would lead to a significant uptick in employment opportunities across various sectors directly and indirectly related to tourism.

Instead, the latest jobs report revealed that any pickup in leisure and hospitality jobs in May was completely erased in June, leaving employment in the sector down by some 21,000 over the past two months. This decline raises questions about the effectiveness of the World Cup as a catalyst for job creation and highlights the complexities of the current economic landscape.

The World Cup, a five-week event expected to bring more than a million fans to 11 US host cities from the New York City area to Los Angeles, was supposed to provide some relief this year for a tourism industry under pressure from various factors. These included President Donald Trump’s hardening of US borders, which has made international travel more challenging, and the surging fuel costs sparked by geopolitical tensions, particularly the ongoing conflict in Iran. The combination of these factors has contributed to an environment where tourism is struggling to regain its pre-pandemic momentum.

However, the reality of the situation is more nuanced. The high costs associated with accommodations and match tickets have raised concerns about the eventual boost that the World Cup might provide to local economies. Many fans are finding that the expenses related to attending the tournament are prohibitive, which could limit the number of international visitors willing to travel to the US for the event. “Geopolitical tensions, higher airfares, and other barriers could have limited international travel for the World Cup, which is weighing on the amount of leisure and hospitality hiring needed,” said Eli Nir, a US economist at TD Securities. This sentiment underscores the idea that external factors are having a significant impact on the expected economic benefits of the tournament.

While US hotels posted record revenue per available room during the week of June 21-27 — the busiest stretch of the World Cup so far — the improvement was driven more by higher room rates rather than an increase in guest numbers. CoStar data show revenue per available room rose nearly 17% in host markets even as occupancy fell nearly 3 percentage points from a year earlier. This trend indicates that while prices may be rising, the actual demand for hotel rooms may not be as robust as anticipated, leading to a paradoxical situation where revenue increases do not necessarily correlate with higher occupancy rates.

The US, which is co-hosting the tournament with Canada and Mexico, is where the majority of the matches are taking place. Even before the games began, the US hotel industry had warned of softer demand. An April survey by the American Hotel & Lodging Association across host cities found that bookings were below expectations for 80% of respondents. This lack of enthusiasm from potential visitors may stem from various factors, including the aforementioned geopolitical tensions and the high costs associated with travel and accommodations.

Hotel operators cited FIFA’s release of unused room blocks, visa delays, and geopolitical tensions that weighed on international travel. CoStar also noted that some business and leisure travelers may have avoided host cities due to higher prices and expected crowds, which could deter even domestic tourists from attending the event.

Shruti Mishra, an economist at Bank of America, provided further insight into the disappointing hiring trend in leisure and hospitality. She suggested that the most likely explanation is that businesses are favoring overtime for existing employees when needed rather than adding new ones. This approach may reflect a cautious attitude among employers who are wary of the uncertain economic climate. Bank of America had previously predicted the tournament would provide a 30,000-40,000 boost in payrolls across May and June, but the reality has not matched these expectations.

At the national level, the sector didn’t register a pickup in average weekly hours worked in June, and wage growth remained slower than in most other sectors. Some employers in the middle of the action, however, are adopting a strategy of maximizing the hours of their current workforce rather than hiring new employees. For instance, Horacio Weschler, the owner of Lala’s Argentine Grill in Los Angeles, noted that reservations sell out almost immediately on Argentina game days. Fans from countries like Paraguay and Australia, who came to watch their teams play in California, have added the restaurant to their itinerary. Despite this demand, Weschler has opted to offer additional shifts to his more than 100 employees rather than training new hires, demonstrating a trend where businesses prioritize existing staff in a tight labor market.

“It’s been hard to find workers,” Weschler said. “So we decided to give priority to the people who have been working with us for longer.” This statement reflects a broader issue within the hospitality industry, where labor shortages have become a persistent challenge post-pandemic, leading employers to make strategic decisions about staffing.

Closer to stadiums, there’s been a more pronounced pickup in hiring. Data from Gusto, a payroll-processing platform, indicates that hiring by entertainment and food and beverage companies in neighborhoods where stadiums are located outperformed other areas in May. This trend suggests that while overall job growth may be stagnant, certain sectors and locations are experiencing localized boosts due to the proximity to the events.

Conversely, some employers further out from the stadiums are regretting their staffing decisions. Brett Dowell, the owner of Hammers Dueling Piano Bar in Kansas City, shared his experience of bringing on five new people in May. However, he noted that the World Cup has failed to expand tourist activity in the area beyond the traditional entertainment hub known as the Power and Light District. As a result, he has stopped scheduling the new hires, indicating that the anticipated economic benefits have not reached all areas equally. “Local establishments outside of that have been having a hard time,” Dowell said. “It was not worth it in our location.” This statement highlights the uneven distribution of economic benefits that can arise from large-scale events like the World Cup, where some businesses thrive while others struggle to attract customers.

In conclusion, while the FIFA World Cup was expected to generate significant job growth and economic activity in the US, the reality has proven to be more complicated. Factors such as geopolitical tensions, high travel costs, and a cautious approach by employers have all contributed to a lack of the anticipated hiring boom. As the tournament continues, it remains to be seen whether the situation will improve or if the current trends will persist, leaving many in the hospitality and leisure sectors to navigate a challenging economic landscape.