3 Discouraging Signs for Minimum Wage Hike Advocates

A New York Times reporting error has drawn attention to how Washington D.C.’s minimum wage law has impacted employment in the district. (Reason)

Sign 1: In a March article, Times reporter Priya Krishna claimed D.C.'s minimum wage hike increased restaurant jobs, but mistakenly used national data instead of local figures.

• The actual data shows a 3.5% decline in full-service restaurant jobs since May 2023, when the wage hike was enacted.

Sign 2: California raised the minimum wage for fast food workers to $20/hour in September 2023.

• Between September 2023 and April 2024, prices at fast food establishments increased 10%, according to a recent policy brief from the Employment Policies Institute.

• Per the Employment Policies Institute, seasonally adjusted data shows the fast-food industry has lost over 4,400 jobs since January 2024.

Sign 3: Since California instituted its fast food minimum wage hike, surveys show support for a statewide minimum wage increase has plummeted.

• 67% support in Nov. 2023 → 50% by Sept. 2024 → 44% by Oct. 2024.

• Last month, Californians rejected a ballot initiative to raise the minimum wage to $18 for all employees across the state.

The research: There’s fierce debate about whether minimum wage hikes increase or decrease the number of jobs — here’s what a recent meta-analysis of studies published since 1992 found:

• 79.3% of studies reported negative effects on employment, particularly for teens, young adults and low-skilled workers.

• Only 5.8% found employment increases from minimum wage hikes.