Last year, California Gov. Gavin Newsom signed the state’s fast-food minimum wage increase into law, which meant that employees at fast-food restaurants in the state went from making $15.50 per hour to $20 per hour. While the decision was lauded by many labor activists as part of broader efforts to improve working conditions and address wage disparities, some economists and fast-food industry members expressed concern over how the law would impact restaurants’ operating costs, which could result in reduced hours for workers or even job cuts.
However, according to new state and federal employment data, California’s fast-food industry has added jobs every month this year — including 11,000 new jobs since the wage increase officially went into effect in April. For instance, in May of 2023, there were 742,600 fast-food workers in the state; a year later, there were 743,300 workers.
According to a release from Newsom’s office last week, since raising worker wages, every month this year has seen consistent fast food job gains, and nearly each month has seen more jobs than the same month last year.
“What’s good for workers is good for business, and as California’s fast food industry continues booming every single month our workers are finally getting the pay they deserve,” Newsom said in a written statement. “Despite those who pedaled lies about how this would doom the industry, California’s economy and workers are again proving them wrong.”