Southern California fast food jobs hit record high despite minimum wage hike – Daily News

Fast food restaurants in Southern California saw record numbers of jobs in June, despite a sharp increase in the minimum wage at the industry’s largest chains.

To measure hiring in the fast-food labor market in the era of the $20-an-hour minimum wage, my trusty spreadsheet looked at employment data for “limited-service” restaurants in Los Angeles, Orange, Riverside and San Bernardino counties.

Figures from the Employment Development Department show the four-county region had 361,500 fast-food workers in June — a record high for the restaurant industry, which employs 4.5 percent of all workers in Southern California.

The problem with this jobs story is that starting April 1, the largest fast-food chains must start paying their employees at least $20 an hour, compared to the $16 minimum for other sectors. Let’s just say politely that industry executives are not happy.

Critics of the hike say it will drive up menu prices and force restaurant owners to cut staff and/or hours. Additionally, some fear that wages across the restaurant industry will rise due to increased competition for workers.

Jobs statistics show that fast food employment increased by 400 in June and by 7,600 since March, just before the wage hike. In addition, the workforce has increased by 3,000 in a year.

Please note that these employment statistics do not account for seasonal variations. Historically, however, fast food owners have added an average of 3,200 local workers in June since 2010 and 4,900 in the March-June period.

So, fast-food hiring in June looks historically slow, but the spring was relatively normal — despite the wage controversy.

Compare fast food to full-service restaurants in the region. These restaurants also hit a record high in June, with 294,500 employees, up 2,000 in a month, 8,800 more since March and 4,500 more in a year.

While restaurant staff adapt to diners’ demands, dining out in Southern California remains popular, whether at quick-service restaurants or sit-down establishments.

Other industries

When you compare the restaurant industry to other employers, you see growth in the regional economy. That’s generally good news for restaurants.

In Southern California, 8 million people were employed in all industries in June. That’s 22,800 more jobs in one month, 72,200 more since March and 115,100 more in one year.

So, over a 12-month period, the number of jobs in Southern California increased by 1.5% compared to the 2.2% growth recorded in fast food. And it should be noted that the staff at full-service restaurants increased at a rate of 2.8%.

Now let’s look at another sector of the hospitality industry. Hotels in the region employed 92,800 people in June, up 1,100 in a month, 3,800 more since March and 2,800 more in a year. Over 12 months, that’s a growth of 3.1%.

Geographically speaking

Fast food hiring models are by no means universal.

The growth in employment across the sector does not mean that all operators are financially healthy during this period of rising wages. Nor should anyone assume that all workers are benefiting from the new wage rules. And there are questions about how long consumers will be able to accept more expensive meals.

Furthermore, three months of data is by no means the final verdict – but it does suggest that the worst-case scenario is not occurring.

Take a look at limited-service restaurant jobs, broken down by metro areas across the region, to see variations in hiring patterns…

Los Angeles County: In June, the fast food industry added a record 197,800 workers, up 200 in a month, 4,400 more since March and 4,300 more in a year. Fast food accounts for 4.3 percent of all jobs in Los Angeles.

Inner Empire: 89,500 fast food workers in June – up 200 in a month, up 1,900 since March, but down 1,300 in a year. Fast food accounts for 5.2% of all IE jobs.

Orange County: 74,200 fast food workers in June – flat for the month, up 1,300 from March and flat for the year. Fast food accounts for 4.3% of all jobs in Orange County.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com