According to a recent study from University of California Riverside, California’s minimum wage increases have stagnated job growth in the restaurant sector.
Forbes pointed out that California was one of the first states to get the ball rolling on minimum wage hikes that moved “towards the “living wage” of $15 per hour by 2022—a 50% hike over 2012.”
The UC Riverside detailed some of the negative effects:
Data analysis suggests that while the restaurant industry in California has grown significantly as the minimum wage has increased, employment in the industry has grown more slowly than it would have without minimum wage hikes.
The same study concluded that “there would be 30,000 fewer jobs in the industry from 2017 – 2022 as a result of the higher minimum wage.” Additionally, the study found that the minimum wage’s was “greater in lower income communities than higher income communities” based on how high-end restaurants “can pass on the additional costs to customers more easily.”
The study finished off by highlighting that the most vulnerable and least skilled were negatively affected:
Specifically, we see a decline in the employment share of low-skilled workers, disabled workers and part-time workers in the sector.
A few months ago, Liberty Conservative News reported on how Whole Foods’ new minimum wage policies have generated layoffs and reduced work hours. Despite these developments, activists insist that more states adopt $15 minimum wage laws.