With a second meeting of the newly-formed California Fast Food Council this week, Governor Gavin Newsom yet again attempted to spin his $20 fast food industry minimum wage as a success. But the newest data show the crisis following the new law is worsening fast.
Just last month, the Bureau of Labor Statistics released data adjusted for regular seasonal factors showing California had lost a few thousand fast food restaurant jobs. Now, the latest data shows the state has lost more than 6,300 jobs in the fast food industry since January.
This seasonally adjusted dataset, widely used by economists to develop a real-time picture of employment, shows California fast food employment has shrunk every month since January.
Paying headlines and numbers no mind, the Governor has been pushing claims that his $20 wage law isn’t bad for California workers, and even is a success. Yet the latest data show what employees and operators have been warning about: the new law is killing jobs and shuttering restaurants. In fact, no matter what data you look at, the year-over-year trends tell the same negative story: California year-over-year fast food employment growth is the lowest it has been since the Great Recession barring COVID-related declines.
In fact, operators spoke at the state Fast Food Council meeting on July 31, telling council members – who are responsible for the wage law and future increases – that the law is crippling opportunity in the industry.
Compiled with recent price increases, restaurant closures, and now abysmal job loss data, the evidence is unmistakable – California’s fast food industry is suffering as a direct result of the $20 minimum wage law.