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You are not surprised. You knew it was going to happen. You knew
that increasing the minimum wage to $15 an hour would cost New York City jobs.
But, the dimwits who run the city and the state cheered the mandated increase.
Now the news is coming in. Restaurant jobs are vanishing, for the first time in
years. And, of course, prices are going up. It's not good for business.
The New York Post has the story:
New
York City restaurants are eliminating jobs, reducing employee hours and raising
prices due to the higher costs of the $15/hour minimum wage.
A
once-growing industry is contracting, according to an online survey conducted
by the New York City Hospitality Alliance, an association representing
restaurants in the city.
Last
year, “full-service restaurants recorded a 1.6 percent job loss, which is the
first recorded annual loss in two decades,” said Andrew Rigie, executive
director of the trade group.
The
survey also said about a third of respondents will eliminate jobs and most will
raise prices this year because of the new $15-an-hour law backed by Gov. Cuomo
and other state officials, which took effect on Dec. 31, 2018.
A total
of 76.5 percent of full-service restaurant respondents reduced employee hours,
and 36 percent eliminated jobs in 2018, the survey said.
Also,
75 percent of limited service restaurant respondents reported that they will
reduce employee hours, and 53 percent will eliminate jobs in 2019 as a result
of the wage increases, according to the survey.
Needless to say, Gov. Cuomo does not care.
The Post concludes:
The
Hospitality Alliance said, “The results of this survey, and other industry
trends, signal that a once-growing industry responsible for hundreds of
thousands of jobs and billions of dollars in economic impact has become
stagnant.”
2 comments:
Prices also went up notably in supermarkets and the chain drugstores which are also replacing cashiers with machines.
Romans 1:22
"Professing themselves to be wise, they became fools."
- shoe
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