According to a statement released by Governor Newsom’s office on June 26, California’s fast food industry has created over 10,000 new job positions since the minimum wage was raised in April. However, data from the U.S. Bureau of Labor Statistics on June 25 shows that California’s unemployment rate remains at 5.2%, the highest among all states in the country.
The press release from the state mentions that based on both state and federal employment data, the fast food industry in California has been consistently adding jobs every month this year. Over the two months since the implementation of the minimum wage law in the fast food industry, a total of 10,600 new job positions have been added.
“We are focused on valuing work dignity, cherishing family time, and respecting unions to build the economy. In California, you don’t need to be a CEO to live a decent life,” the Governor stated. “The California spirit means working hard and earning a wage that meets your needs. The progress we have made by providing higher wages and better benefits for workers is not just about hourly wages; it’s about creating a dignified and respected future where everyone can participate in our growth… Workers have received raises and job security, while companies have gained a more stable workforce.”
The news release mentioned that according to the U.S. Bureau of Labor Statistics, California has added 20,700 fast food job positions since the beginning of the year. In May 2024, there were 745,600 job positions, compared to 742,600 in May 2023, representing an increase of 3,000 positions from the same period last year.
At the end of September 2023, Newsom signed AB1228, a bill that required raising the minimum wage for fast food workers to $20 per hour starting on April 1 this year, while California’s current minimum wage is $16 per hour.
Since the bill was signed, fast-food chains such as McDonald’s have announced price increases in California to address the rising labor costs. After April 1, many chains raised prices, including Chipotle, Chick-fil-A, Pizza Hut, Burger King, Wendy’s, and Taco Bell; in addition, some chains permanently closed some of their stores.
According to data released by the U.S. Bureau of Labor Statistics on June 25, North Dakota and South Dakota have the lowest unemployment rates among all 50 states at 2.0%; Texas has maintained a 4.0% unemployment rate, the same as the national average, ranking 36th; Nevada’s unemployment rate is 5.1%; California ranks 50th at 5.2%, with the District of Columbia having the highest rate at 5.3%. California’s unemployment rate was at 5.3% in April, showing a decrease of 0.1% now.
On June 7, the Bureau of Labor Statistics reported that non-farm payroll employment in the U.S. increased by 272,000 in May, with an average unemployment rate of 4.0%.
The California Employment Development Department (EDD) released information on June 21 stating that out of the 8 out of 11 industries in California, a total of 43,700 jobs were added in May, accounting for 16.1% of the nation’s new employment.
The leisure and hospitality industry added 10,200 jobs; following that, private education and health services increased by 9,300; professional and business services grew by 9,000; the government sector added 5,600 jobs, and finally, trade, transportation, and utilities added 2,500 positions.
EDD statistics indicate that employment in accommodation and food services (including fast-food establishments) increased by 8,100 positions in May, with an additional 5,900 in April, totaling an increase of 14,000 jobs over the two months.
Furthermore, from May 2020 (the start of the pandemic lockdowns) to May 2024, California has added over 3 million jobs, with an average monthly increase of 63,273 jobs.