Bosses at Southern California’s quick-serve restaurants added 4,800 workers in May to a new record high, offering an early peek into how a controversial hike in minimum pay for many fast-food workers might reshape the industry.
My trusty spreadsheet review of the Employment Development Department’s job stats found 362,000 workers at limited-service restaurants in Los Angeles, Orange, Riverside and San Bernardino counties. That was up 4,800 for May and topped July 2023’s previous all-time high of 359,400.
Now, these job figures are not adjusted for seasonal swings. So, we looked at May hiring patterns in 2015-19, more normal times before coronavirus upended the economy. May 2024’s increase was nearly double the industry’s average of 2,760 hires during those five years. And, by the way, local fast food staffing is up 5,200 in a year.
This boost in staffing follows April’s $4 hike in the minimum wage to $20 for workers at the largest fast-food chains. Industry leaders are furious at the financial burden, saying the wage hike will force them to charge more for their food and trim staffing. Monthly job data does not track hours worked in the fast-food industry.
Robust spending
Yes, a month or so of hiring patterns is by no means the full story. The wage hike is certainly an added hurdle for fast food bosses who operate in an already expensive business climate.
Perhaps this early glimpse at the wage hike and hiring is a Southern California quirk. In the rest of California, fast food had 383,600 workers in May – up a slim 1,300 in a month and below the 3,580 hires averaged in 2015-19. Those bosses have trimmed staff by 2,200 over the past year.
Now, local fast food staffing may remain firm because its critical variable – the health of the overall economy – remains relatively strong. And that keeps Southern California consumers dining out.
Consider employment at all other Southern California eateries for May. Full-service restaurants and food service operations had 342,100 workers, up 3,100 in a month vs. an average 1,760 hires for May in 2015-19. This niche’s employment is up 4,200 in a year.
And if you want to see more signals of robust consumer spending, think about job growth in another slice of the Southern California hospitality industry: workers in hotels, entertainment or recreation. These business had 269,800 workers in – up 4,700 in a month vs. an average 2,580 hires in 2015-19. These bosses have added 5,300 jobs in a year.
Look, the local economy remains in growth mode. Across all Southern California industries, 7.99 million were employed in May – up 19,800 in a month and up 63,100 in a year.
Industry swings
Jobs were growing in May in seven of 11 other key Southern California business sectors, ranked by one-month change …
Government: 1.04 million workers – up 4,100 in a month vs. an average 2,400 hires in 2015-19. It’s up 24,000 in the past year.
Construction: 373,100 workers – up 2,900 in month vs. average 2,660 hires. Up 2,600 in year.
Personal services: 270,200 workers – up 2,700 in month vs. average 1,000 hires. Up 7,700 in year.
Professional-business services: 1.12 million workers – up 1,800 in month vs. average 1,500 cuts. Down 20,500 in year.
Retailing: 727,600 workers – up 1,500 in month vs. average 1,100 hires. Down 1,300 in year.
Financial: 357,200 workers – up 1,200 in month vs. average 1,140 hires. Down 2,100 in a year.
Logistics-utilities: 800,400 workers – up 1,100 in month vs. average 3,140 hires. Down 1,700 in a year.
Information: 219,900 workers – down 200 in month vs. average 860 cuts. Down 15,600 in a year.
Health/social services: 1.32 million workers – down 1,100 in month vs. average 3,840 hires. Up 58,300 in a year.
Manufacturing: 563,400 workers – down 1,400 in month vs. average 460 hires. Down 10,700 in a year.
Private education: 212,600 workers – down 5,500 in month vs. average 3,260 cuts. Up 7,600 in a year.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Related Articles
Southern California hiring runs 15% above average in May
What’s changing in California’s new healthcare minimum wage
California Disney employees who moved to Florida sue after CEO cancels $1 billion office deal
California lost 222 big employers in 4 years, No. 3 drop in the US
California workers are third-most productive in US