A study found that Democrat-controlled California saw significant fast food job losses due to its $20 minimum wage.
A study by the Berkeley Research Group showed the shift happening between June 2023 and June 2024 when 10,700 jobs were lost, Fox News reported Thursday.
In addition, prices at the locations jumped by more than 14 percent.
California’s mandate that fast food workers be paid a $20 per hour minimum wage took effect in April even though many worried it would worsen the state’s unemployment and inflation problems, Breitbart News reported.
“While some workers will receive raises, others are likely to lose their jobs to automation or cutbacks. Minimum wage hikes tend to eliminate jobs for the most vulnerable, least-skilled workers in jobs that do not produce enough revenue to support the high wage level,” the article said.
The study said the state’s fast food eateries also upped their automation and technology adoption in light of the higher labor costs, noting that it should not be a shock to anyone that the number of workers in each restaurant was on the downturn.
The Fox report continued:
“Californians are bearing the cost of the minimum wage increase through fewer available jobs and higher food cost,” it added. The study also debunked notions that the minimum-wage legislation created jobs, according to the California Globe.
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The minimum wage for workers was $16 before the $20 minimum wage for fast-food workers became law in April 2024. Gov. Gavin Newsom said in September 2023 the increase would help workers earn more as the cost-of-living rises.
In April, a major fast food franchisee said he was rushing to install kiosks at his restaurants to save money as the $20 minimum wage took effect, Breitbart News reported at the time.
A few months later, the outlet said approximately 10,000 jobs were reportedly cut at California fast food restaurants following the minimum wage hike.
On New Year’s Day 2025, a rise in minimum hourly wages hit nearly half of the states in the U.S. and 48 counties, Breitbart News reported.
Meanwhile, the recent study also found that technology is replacing some workers, per KMPH.
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