Gov. Newsom’s Office Continues to Fib About Fast Food Job Losses – Claims Job Gains

Did you expect Gavin Newsom to tell the truth?  He lied to his first wife about his affairs.  Like Biden, he is lying about job losses in California.

“As Rebekah Paxton told us in June: “Newsom is stretching the truth to obscure the obvious: His fast food minimum wage hike has been a disaster. Thousands of workers have lost their jobs, hours are being slashed, and restaurants are closing at an alarming pace. The public isn’t fooled by Newsom’s statistical spin.”

This remains true today.

“He is using the non-adjusted data set,” Paxton said in an interview with the Globe Tuesday. “He went after other groups for using these last time around. But as of July, California is still down 3,000 fast food jobs since January 2024.”

There have been historical fast food job losses because of the increase to the $20 per hour minimum wage. And the governor and his PR staff don’t appear to care that people are losing their jobs – they’d rather gaslight minimum wage workers and claim fast food jobs are up.”

In the past four months, on just ONE street corner in Simi Valley we lost the First Street Café, a hamburger joint and the Black Bear Dinner.  Note the restaurant closures in your town.  Have you seen any NEW fast food joints in your community lately?  Newsom lies and jobs and the economy die.

Gov. Newsom’s Office Continues to Fib About Fast Food Job Losses – Claims Job Gains

‘Newsom is stretching the truth to obscure that his fast food minimum wage hike has been a disaster’

By Katy Grimes, California Globe,  8/20/24     https://californiaglobe.com/fl/gov-newsoms-office-continues-to-fib-about-fast-food-job-losses-claims-job-gains/

The Globe received another of Gov. Gavin Newsom’s PR flaks’ gloating emails still claiming that fast food jobs are up in California – even with the $20 per hour wage going into effect April 2024.

In June, the Globe reported that California has lost just under 10,000 fast food jobs since the new $20 minimum wage for fast food employees was first signed into law late last year, according to the California Business and Industrial Alliance (CABIA).

CABIA cited data and a report from the Hoover Institution at Stanford University. This article apparently displeased the Governor’s office. We received an email from Brandon Richards (He/Him), Deputy Director of Communications in the Office of Governor Gavin Newsom, asking for a retraction or correction and claiming the state has gained jobs since the $20 per hour fast food minimum wage.

Interestingly, their PR tactic is to continue the lie, and skew and manipulate data, even in the face of more and more fast food restaurants closing in California, cutting staff, adding more automation and cutting overtime.

Rather than taking my word for it, or believing your own lying eyes, the Globe spoke with Economist Rebekah Paxton for her analysis of Gov. Newsom’s claims.

Paxton, who holds advanced degrees from Boston University in Economics and Political Science, is the research director at the Employment Policies Institute.

Here is Brandon Richards’ (He/Him) latest fairytale:

I wanted to reach out because you previously wrote about the number of fast food jobs in California, and wanted to be sure you saw that July marked the fourth month the $20/hour min wage law has been in effect and for the fourth straight month California saw job growth – making it 7 straight months of job growth in this sector this year!

In fact, California’s fast food industry is at its highest employment level ever.

  • Job growth when looking at it from September 2023 – July 2024
    • When Governor Newsom signed the bill to most recent month’s data
  • Job growth every month from January 2024 to July 2024
    • Every month this year leading up to and including the law being in effect
  • Job growth when looking at it from March 2024 to July 2024
    • The last month prior to the law going into effect and the first three months of the law in effect.
  • Job growth when looking at April 2023 to April 2024
    • Year over year, showing no discouragement about new law going into effect (April 2024)
  • Job growth when looking at it July 2023 to July 2024
    • Year over year, showing California’s industry continues to grow

This all comes despite the early, and false, criticism by a corporate trade group that attempted to push outdated data seemingly for political purposes – and they were rightfully called out.

I have included the BLS data chart below for ease.

Looking forward to your continued coverage, and more accurate portrayal of the current environment than what has been written in the past.

Have a lovely weekend,

Brandon

BRANDON RICHARDS (He/Him)

Deputy Director for Rapid Response

As Rebekah Paxton told us in June: “Newsom is stretching the truth to obscure the obvious: His fast food minimum wage hike has been a disaster. Thousands of workers have lost their jobs, hours are being slashed, and restaurants are closing at an alarming pace. The public isn’t fooled by Newsom’s statistical spin.”

This remains true today.

“He is using the non-adjusted data set,” Paxton said in an interview with the Globe Tuesday. “He went after other groups for using these last time around. But as of July, California is still down 3,000 fast food jobs since January 2024.”

There have been historical fast food job losses because of the increase to the $20 per hour minimum wage. And the governor and his PR staff don’t appear to care that people are losing their jobs – they’d rather gaslight minimum wage workers and claim fast food jobs are up.

“They are cherry picking different time periods here,” Paxton said, “and the administration’s statistics don’t hold up.”

Paxton said the September 2023 to July 2024 time period is a very big time period and arbitrary since September is when the bill was signed, but it wasn’t until January 2024 that we started seeing headlines about fast food companies starting layoffs and job cuts in preparation for the April 2024 effective date of the new minimum wage increase to $20 per hour.

Indeed – the Globe reported December 26, 2023, “Pizza Hut Fires Over 1,200 Drivers In California Before New $20 Minimum Wage Comes Into Effect.”

Even the March 2024 to July 2024 time period, Paxton said is missing about half of the job loss data, since the job cuts started in January 2024, ahead of the April 2024 implementation.

“The BLS statistics show that there have been fast food job losses in 6 of 7 months,” Paxton said. “The net numbers show January through today, 3,000 fast food jobs lost in California.”

Paxton provided some statistics from the BLS’ seasonally adjusted dataset that refute the Governor’s comms campaign (which continues to use non-adjusted data that the administration has accused others of doing):

1. CA has had monthly fast food jobs losses 6 out of 7 months this year, in the period since Jan 2024

2. Since January 2024, CA is still down nearly 3,000 jobs:

DateFast Food EmploymentMonthly Change
Jan 2024742,228
Feb 2024741,618-610
Mar 2024739,451-2,168
Apr 2024739,055-396
May 2024738,071-984
Jun 2024736,030-2,041
Jul 2024739,4633,433
Change from January to July 2024-2,766

3. When looking at year-over-year fast food industry employment growth for April (Apr 2023-2024), California had the lowest annual employment growth (0.7%) since the Great Recession (barring COVID losses in 2020)

DateFast Food EmploymentAnnual Change
Apr 2009483,049
Apr 2010475,502-1.6%
Apr 2011485,1102.0%
Apr 2012502,9893.7%
Apr 2013528,9125.2%
Apr 2014568,1947.4%
Apr 2015598,2305.3%
Apr 2016630,3705.4%
Apr 2017658,2344.4%
Apr 2018680,1233.3%
Apr 2019699,5702.9%
Apr 2020529,699-24.3%
Apr 2021651,10622.9%
Apr 2022716,80110.1%
Apr 2023733,8572.4%
Apr 2024739,0550.7%

4. When moving that year-over-year analysis to the latest month (July 2023-July 2024), that annual fast food employment growth has shrunk further down to just 0.5% in July, and July’s year-over-year growth in 2024 continues to be the lowest level since the Great Recession.

DateFast Food EmploymentAnnual Change
Jul 2009479,076
Jul 2010478,340-0.2%
Jul 2011487,1161.8%
Jul 2012507,2794.1%
Jul 2013539,7306.4%
Jul 2014575,1056.6%
Jul 2015606,1585.4%
Jul 2016637,9115.2%
Jul 2017665,0094.2%
Jul 2018683,3862.8%
Jul 2019701,0992.6%
Jul 2020597,499-14.8%
Jul 2021679,47413.7%
Jul 2022725,2066.7%
Jul 2023735,5351.4%
Jul 2024739,4630.5%

Additionally, An EPI survey indicates these changes are here to stay if the fast food minimum wage law continues.

EPI reports:

Federal jobs data has shown California’s fast food industry has been hemorrhaging jobs for months – but how does the Golden State stack up to its Western neighbors?

A look at the data for Oregon and Nevada, the only West Coast states for which fast food industry-level data was available, show the fast food jobs loss trend is not ailing other states, and is more likely related to the aggressive $20 wage hike policy (atop California’s already exhaustive set of labor regulations).

“Bureau of Labor Statistics latest seasonally adjusted data shows that in Oregon and Nevada, the two states data was available, fast food jobs have been growing since January. In this same time frame, California has lost jobs in the industry every month.”

2 thoughts on “Gov. Newsom’s Office Continues to Fib About Fast Food Job Losses – Claims Job Gains

  1. Gov. Gavin “Hair Gel” Newsom can lie all he wants, but PEOPLE know the truth. They know someone who lost their job and thus went from $20 an hour to ZERO dollars an hour. They know someone whose hours were reduced and thus brings home less money than before the increase. They know someone who needed part-time employment but never found it because the fast-food restaurant closed. And everyone knows they are eating out less at fast-food restaurants because a hamburger, fries and soda is not worth $25.

  2. Democrats do that. The White House overestimated job growth by 800,000 jobs. When you want to look good, invent the numbers. If you get caught, liberals will just believe the correction claim is just politics and not real.

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