A recent analysis from the Employment Policy Institute (EPI), a conservative think tank, shows that California has lost thousands of fast food workers since the enforcement of a massive minimum wage hike in early 2024.
It is estimated that Golden State has lost almost 14,000 fast food jobs since implementing a minimum wage increase for fast food workers in April 2024. According to Analysis of Bureau of Labor Statistics (BLS) data published Wednesday by EPI. In September 2023, California Governor Gavin Newsom signed the Law The minimum wage for fast food workers in California has been increased from $16 per hour to $20 per hour. effect April 2024.
“The minimum wage hike was implemented just 11 months ago, but in the early days, predictable patterns are already fairly clear. In the face of a 25% increase in labor costs, employers cut labor.” “They fired workers, replaced them with kiosks like ATMs to replace counter services, automating kitchens, closing dining rooms, and reducing store opening hours. At the same time, owners are increasing the prices on the menu. And of course, it’s falling the biggest for low-income people, which leads to lesser store traffic — and that kicks off another layoff.”
According to BLS data cited by EPI, there were 16,000 fast food employees in September 2024 compared to September 2023.
After the California fast food minimum wage increased, some fast food restaurants in the state reported that there was less traffic for customers and that they needed to raise prices on their menus. According to Go to Fox News. Still, Newsom’s office is repeated praise Fast food wages increase as they have a positive impact on California workers; It was rejected It claims the law reduced the state’s fast food workforce.
Relatedly, the blue state is now I’m considering It will further raise the minimum wage for fast food workers. (Related: Gavin Newsom invites Trump on a California fire truck tour)
(Photo: Mario Tama/Getty Images)
Additionally, in California, we have seen many residents migrate to other states in recent years. Quote High living costs are the main factor in leaving. In particular, Newsom has led efforts in recent months to “prevent Trump” California from President Donald Trump.
“Union leaders love to say faster food wages are essential because the cost of living in California is so high,” Swaim told DCNF. “But the high cost of living is the problem. As a policy issue, people in the fast food industry will provide better services by eliminating regulations that make daily life more expensive. Instead of increasing wages, the state can make things cheaper. It eliminates barriers to building new homes, the final regulations that make California gas, electricity and water the most expensive in the country. Generally speaking, California’s high cost of living is self-intrusion and the product of bad policies supported by Democrats and unions.”
When asked for comment, a Newsom’s Office spokesman introduced the DCNF to two studies. One of the study We found no evidence that an increase in the minimum wage had unintended consequences on staffing, while others had unintended consequences. study He was warned against eliciting a coincidence relationship between policy and significant negative employment effects and significant price increases. Neither study addressed Wednesday’s analysis of BLS data from EPI.
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