Fast food jobs fall, Newsom tells whoppers
Dec 11, 2024
Anyone with any economic understanding would understand that government-mandated wage increases at fast-food restaurants would reduce the number of jobs and drive up the price of burgers, fries and pizza.
Sure enough, the latest data shows that after Gov. Gavin Newsom signed a union-backed law increasing wages by 25% to $20 an hour, the number of fast-food jobs has plummeted.
According to a new report from the Employment Policies Institute (EPI), “Since the passage of AB 1228 in September 2023, California’s privately-owned fast food restaurants have lost -6,166 jobs (-1.1%) through June 2024 (the latest available data). … Over the same period the previous year, prior to passage of AB 1228 … California gained 17,528 private sector fast food jobs (+3.1%).”
Newsom signed Assembly Bill 1228 after negotiating a compromise between labor unions and the industry. The Legislature had passed a much more radical proposal that would have raised wages to $22 an hour, created a far-reaching government council to oversee fast-food working conditions and undermined the franchise system. The industry withdrew a referendum from the ballot in exchange for the less-radical measure.
Although the higher wage didn’t go into effect until April, fast-food restaurants began shedding jobs in expectation of it. Instead of acknowledging the law would result in job losses, Newsom (and union-backed university labor centers) argued the law wouldn’t have ill effects. Newsom has pointed to job increases, claiming that critics were wrong that it would reduce jobs. His spokesman blasted EPI as an industry group.
The Center Square looked at the divergent numbers and number sets used by the administration and EPI, but found “the latest quarterly report from the Bureau of Labor Statistics shows an unambiguous decline of 4,256 fast food jobs through June since the fast food minimum wage rose from $16 to $20 per hour at the start of April.” And there’s no question some fast-food chains have closed.
Newsom and legislative Democrats can spin this any way they choose, but government mandates cost jobs and raise prices. They should at least own their own policies.