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California’s $20 Minimum Wage Hike Sparked Major Job Loss

The survey found that Democrat-controlled California had significant fast food job losses due to wages of at least $20.

A study by a research group in Berkeley showed that this was happening when 10,700 jobs were lost between June 2023 and June 2024, Fox News It has been reported Thursday.

Additionally, location prices have jumped over 14%.

Despite many worried that it would exacerbate the state's unemployment and inflation problems, the California order in April that fast food workers would be paid $20 in minimum wage, reported Breitbart News.

“Some workers get pay raises, while others may lose their jobs due to automation or reductions. Increases in the minimum wage tend to eliminate employment of the most vulnerable and most skilled workers in jobs that do not generate enough income to support high wage levels,” the article states.

The study noted that the state's fast food restaurants also increased their adoption of automation and technology in light of higher labor costs, and that the number of workers at each restaurant was not a shock to anyone.

The Fox report continues:

“Californians are owing the costs of rising minimum wages due to lower jobs available and higher food costs,” he added. According to the California Grove, the study also uncovered the notion that minimum wage laws created employment.

The minimum wage for workers was $16 until the $20 minimum wage for fast food workers became law in April 2024. Gov. GavinNewsom said in September 2023 that it will help workers earn more income as their living costs rise.

In April, major fast food franchisees said they were in a hurry to set up kiosks at restaurants to save money as the $20 minimum wage came into effect, Breitbart News reported at the time.

Months later, the outlet reportedly cut around 10,000 jobs at California fast food restaurants following the minimum wage hike.

On New Year's Day 2025, the lowest hourly wage rise collided with almost half of the US and 48 counties, according to Breitbart News.

Meanwhile, recent research Found That technology has replaced some workers per kmph.

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