Study: California’s $20 Minimum Wage Hike Sparked Major Job Loss

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. (Read  More)