Amusement Parks and Arcades NAICS 7131

Jun 27, 2025 - Labor Costs, Employment Up

• Employment and wages for amusement parks and arcades were up in April 2025 year over year, increasing 1.2% and 4.4%, respectively, according to data from the US Bureau of Labor Statistics. Employment by amusement parks and arcades increased 20.2% in the past decade, faster than the 13.6% growth in overall private employment. Meanwhile, producer inflation for amusement and theme parks declined 3.4% in May 2025 year over year, according to producer price index data from the US Bureau of Labor Statistics. According to the Consumer Price Index, prices for recreation services, including leisure and entertainment activities, were up 3.7% in May 2025 year over year. Leading industry indicators showed improvement in February 2025, with consumer spending up 2.7% compared to a year ago, according to the Bureau of Economic Analysis.
• The art, entertainment, and recreation services industry is one of the 10 industries reporting growth in May’s Services ISM Report on Business. Executives in the art, entertainment, and recreation services industry, which includes amusement parks and arcades, reported an increase in business activity, employment, and new orders in May. Other services industries reporting growth during the period included Accommodation & Food Services; Public Administration; Mining; Utilities; Educational Services; Real Estate, Rental & Leasing; Information; Health Care & Social Assistance; and Professional, Scientific & Technical Services. The eight services industries reporting contraction during the period were Other Services; Retail Trade; Management of Companies & Support Services; Agriculture, Forestry, Fishing & Hunting; Finance & Insurance; Construction; Transportation & Warehousing; and Wholesale Trade. Overall, economic activity in the services sector contracted in May, with the Services PMI registering 49.9%.

• The US amusement parks and arcades industry is projected to grow at a CAGR of 5.31% between 2025 and 2029, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth rate is faster than the overall economy's projected growth. Spending by US households and tourists, foreign students, and other visitors largely drives the arts, entertainment, and recreation industries. Consumer confidence is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is substantially higher tariffs on consumer goods, which may be painful for households. On a positive note, lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if average prices rise due to tariff implementation.
• According to a report in The New York Times, Universal has announced a number of new projects in new markets as it seeks to compete more effectively with entertainment and theme park powerhouse Disney. Universal’s expansion plans include projects in Dallas, Las Vegas, Los Angeles, Britain, and a new theme park development in Orlando. The company’s project in Las Vegas is called Universal Horror Unleashed, and will hold four haunted houses themed to movies like “The Texas Chainsaw Massacre” and “The Exorcist: Believer.” Universal’s Kid Resort project near Dallas is aimed at children ages 3 to 8 and will feature rides and play areas tied to movies like “Shrek,” “Trolls,” and “Minions.” The 32-acre “starter” park is expected to open in 2026. The company has several projects planned to open in 2025. Its Fan Fest Nights events in Los Angeles at Universal Studios Hollywood and its Epic Universe development in Orlando, a 750-acre theme park with three hotels, opened in spring 2025.