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California’s $20 minimum wage for big fast-food chains caused about 18,000 job losses, study says.
A new study finds California’s $20 hourly minimum wage for large fast-food chains, enacted in April 2024, likely caused about 18,000 job losses, with employment in the sector dropping 2.64% from September 2023 to September 2024—contrasting with a slight national increase.
Researchers attribute the decline to higher labor costs prompting staffing cuts, closures, and automation.
The findings suggest large, rapid wage hikes may reduce jobs, especially in low-margin industries, fueling debate over the policy’s trade-offs.
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El salario mínimo de 20 dólares de California para las grandes cadenas de comida rápida causó la pérdida de unos 18,000 empleos, según un estudio.