Southern California’s fast-food industry continues to experience a surge in hiring, reaching record levels for the third consecutive month. However, the annual pace of job growth has slowed, prompting speculation about the potential impact of the recent $20 minimum wage mandate. The mandate, which took effect in April, requires larger quick-service chains to pay employees at least $4 more than the state’s minimum wage. While the industry is experiencing record staffing, the slower annual growth raises concerns about whether the higher wages are contributing to a cooling job market. This could be a sign of a softening economy, but further analysis is needed to determine the specific cause of the slowdown. Compared to other industries in Southern California, fast-food job growth has outpaced the full-service restaurant sector and the overall regional job market. However, the slower growth rate compared to historical trends suggests that the industry may be feeling the pinch of higher wages. The study highlights the need for continued monitoring of the impact of the $20 minimum wage on the fast-food industry and the broader Southern California economy.
