Bill Morris writing for the free beacon reveals that DC restaurants are experiencing the worst hiring period in 15 years. The connection of that to the concurrent increase in hourly pay to $10.50 an hour is hard to miss.
Cheap food restaurants rely on cheap labor and not every job is worthy of a living wage. Some jobs are just part-time or temporary jobs.
McDonald’s burger flipping is not a career path.
Employment in DC is increasing everywhere else but restaurants in DC — they lost 1400 jobs in the first six months of 2016. It’s the largest loss of jobs since the 2001 recession.
Way to go Democrats!
American Enterprise Institute scholar Mark Perry said the hiring slowdown can be tied to recent minimum wage hikes in the city.
The year in DC started off with higher-than-average wages for employees who receive tips and an hourly wage of $10.50 for non-tipped workers, higher than Virginia’s $7.75 and Maryland’s $8.75 rates. Nearby areas in both Virginia and Maryland are seeing jobs increasing.
Perry said it may take several years to fully understand the link between wage rates and hiring practices in the region, but early evidence shows a potential link. Washington, D.C. and its suburbs are among the nation’s wealthiest regions and the health of the service industry will provide “a natural experiment to test for the employment effects” of minimum wage policies, according to Perry.
“The preliminary evidence so far suggests that DC’s minimum wage law is having a negative effect on staffing levels at the city’s restaurants,” Perry said on AEI’s website. “If the DC restaurant industry can’t easily absorb an $11.50 an hour minimum wage without experiencing the greatest job losses over the last six-months than in any comparable period in 15 years, just imagine the troubles adjusting to further labor cost increases of more than 30% (and $3.50 an hour) for minimum wage workers in the coming years to the full $15 an hour.”
In June, Washington D.C. joined a handful of major cities to adopt the $15 minimum wage, more than double the federal minimum of $7.25 an hour. That bill will nearly double wages for waiters and other tipped employees, hiking wages from $2.77 to $5 an hour. Similar laws have been adopted in New York and California.
That should provide more evidence.
The socialist SEIU is behind the $15 campaign throughout the nation and Democrats were all over that.
Fast food workers will become mostly obsolete as robots, kiosks, and mobile ordering take their place. What was once a great starter job for youth, the elderly, immigrants and others is on its way out.