Minimum Wage Killing San Diego’s Restaurants
A new review of the restaurant industry in San Diego, California, shows that since its minimum wage hike to $11.50 per hour, the city has lost a whopping 4,000 restaurant jobs.
Just over a year ago, the city of San Diego decided to skip ahead of the state’s rules to raise the minimum wage to $10.25 per hour and went straight to $11.50. But since that decision, a look at the workers most affected by the new wage seems to show it has hurt, rather than helped them.
In most places in the country, those most affected by the minimum wage are in the restaurant industry. In San Diego, for instance, about half of all workers earning minimum wage are food service workers, according to Reason.com.
But since last year’s wage hike, restaurants have shed jobs or ceased expansion to make new jobs at a very high rate. “San Diego has dropped sharply, with perhaps as many as 4,000 jobs lost, or never created in the first place.” Reason states.
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