FACT CHECK: California’s Fast Food Minimum Wage

Following the passage of the increase to the minimum wage for specified fast food workers, much attention has been paid to the impacts the wage increase will have on jobs. While anecdotal data, including the closure of legacy fast-food chain stores in California, has made headlines, we are now able to use empirical data to track the law’s impacts on jobs and the economy. Despite what some are saying, the data are clear: newly passed fast food minimum wage laws are leading to job losses in California.

Full July 2024 Jobs Report

The JOLTS (Job Openings & Labor Turnover Survey) estimates continue to indicate California employers are cutting back on their hiring plans, reducing the likely scale of future jobs growth in the state.

Quick Facts: California Employment Report for July 2024

The July numbers were generally positive, but again at levels showing the state economy largely running in place. After posting the worst unemployment rate among the states 5 months in a row, California finally notched down to the second worst in July, tying with Illinois in that slot. The total number of unemployed, however, remained above the 1 million mark for the 7th month in a row. Employment while showing a marginal gain of 7,300 for the month still was 88,700 below the near term high posted in May 2023.

California Trade Report for June 2024

The June trade data again showed positive news for California. Origin exports rose 1.6% in nominal terms compared to June 2023. Overall trade activity through the state ports rose 11.9% over this period as imports in particular surged 13.6% as shippers began holiday stocking early in response to rising risks of supply disruptions and looming rises in tariffs.

California Energy Price Data for July 2024

In May, California again posted the highest electricity rates among the contiguous states across all three major end use sectors. Although easing, California gasoline and diesel remained the highest as well.

Looking At California’s Economy Ahead of Last Month of Session

With the California Legislature returning for the final month of session this coming Monday, the Center for Jobs is releasing this special report, which contains metrics on the current jobs and economic outlook for the state. With recent news about the departure of Chevron and Tesla, and large layoffs by Intel, legacy companies are making major announcements that will affect both the current and future economy, especially the state budget.

Full June 2024 Jobs Report

As discussed in our preliminary report, nonfarm jobs posted more positive results over the past two months, with June’s preliminary number coming in near the pre-pandemic monthly average from 2019. The labor force numbers in contrast, although showing the best results since last December, still reflected a continuing weakness in the state economy. Tying with Nevada, California at 5.2% had the highest unemployment rate among the states for the 5th month in a run. Total unemployment just barely missed the 1 million mark by only 100 workers. Total employment although up in June was down 93,000 for the year and remained 386,000 short of recovery to the pre-pandemic peak.