FAFO – CA down 16K fast food jobs amid $20 wage, you raise minimum wage and people lose jobs, food costs more – duh

Federal data now shows California fast food employment is down 16,000 jobs since the passage of the state’s $20-per-hour fast food minimum wage last year.

A fast food study from the Berkeley Research Group found California fast food prices increased 14.5% from September 2023 to October 2024, or double the national average.

The U.S. Bureau of Labor Statistics’ quarterly employment survey covers 95% of American jobs, and is considered the gold standard for jobs and wage data. Now its latest report shows California fast food jobs declined from 570,909 in September 2023 to 554,748 in September 2024.

“Some advocates for the fast food minimum wage have already branded the 25% increase a success,” wrote BRG, whose research team included the former head of the state-funded Legislative Analyst’s Office. “According to them, not only have fast food workers received higher pay because of the increase, but the number of jobs available to these workers has increased as well. However, these claims are not supported by reliable data.”

The BRG report notes jobs declined in December 2023, which in this century only occurred during the Great Recession in 2009 and during the COVID-19 pandemic in 2020, and that employers have cut hours and benefits to offset wage increases.

According to California Gov. Gavin Newsom, that’s not happening, citing a UC Berkeley study.

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