Los Angeles, California – A new study from Pepperdine University is reigniting the debate over California’s minimum wage hike for fast-food workers, claiming the policy has led to a steep decline in jobs.
Released on April 1 to mark the one-year anniversary of Assembly Bill 1228, the study says the state’s fast-food sector has shed more than 23,100 jobs—a sharp contrast to the 0.8% growth seen in the industry nationwide. The report, conducted in partnership with Beacon Economics, warns that the $20 minimum wage may be hurting more than helping.
“This new data should be a wake-up call for policymakers,” said Christopher Thornberg, founding partner at Beacon Economics. “The employment losses in California’s fast-food industry are now evident, and they confirm what many had warned about: Drastic wage hikes create real economic consequences, especially for entry-level workers.”…