At One Year, California’s Fast-Food Minimum Wage Hike has Reduced Jobs, New Pepperdine White Paper Reveals
MALIBU, Calif. – A new white paper from the Pepperdine School of Public Policy and Beacon Economics presents compelling evidence that California’s Fast Act (AB 1228) has led to significant job losses in the state’s fast-food industry.
The white paper, “Jumping the Gun on the Fast Act,” analyzes newly revised employment data from the California Employment Development Department (EDD), and challenges prior reports that suggested the wage increase had minimal negative impact.
The study reveals that revised employment estimates show a decline of over 23,100 jobs (3.2%) in the limited-service restaurant sector over the past year, while the rest of the U.S. saw growth of 0.8% in the same category. The findings suggest that early claims of the Fast Act’s success were premature and based on incomplete data.
“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.”
The white paper, a partnership project between Pepperdine School of Public Policy and Beacon Economics, warns that the negative effects of the Fast Act may well extend beyond employment numbers, with potential long-term impacts on business sustainability, employee work hours, and benefits. Given these findings, the white paper urges the Fast Food Council to halt any further regulatory changes until unbiased, comprehensive research is conducted.
The full paper can be downloaded here.
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About Beacon Economics, LLC
Beacon Economics, LLC is a non-partisan, independent research and consulting firm dedicated to delivering accurate, insightful, and objectively-based economic analysis that enables its clients to make informed decisions about investment, growth, revenue, and policy. The company is based in Los Angeles and is certified as a Small Business Enterprise (SBE) within the state of California. Learn more at www.BeaconEcon.com
About Pepperdine University School of Public Policy
The School of Public Policy (SPP) is built on a distinctive philosophy of nurturing public leaders to use tools of analysis and policy design to effect real change. Grounded in understanding policy's moral and distinctly American elements, SPP prepares graduates for careers as leaders by offering a master’s degree in public policy and three joint-degree programs. The school’s Davenport Institute for Public Engagement and Civic Leadership promotes citizen participation in governance through major conferences, trainings, seminars, and published research. Follow SPP on Facebook, Twitter, Instagram, LinkedIn, and YouTube.
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