Bay Area Job Blues Bay Area job growth in the leisure and hospitality sector slumped to a five-year low after San Francisco and Oakland adopted the highest citywide minimum wage in the country of $12.25 an hour last spring.
After rising close to 5% a year, leisure and hospitality industry hiring slowed to just 2.2% from a year ago in November in the Bay Area. Meanwhile, such employment rose 4.9% in the rest of California, where the minimum wage was generally $3.25 lower — before the $1 statewide hike to $10 on Jan. 1.
Oakland’s minimum wage got an inflation-related bump to $12.55 with the start of 2016, with San Francisco’s jumping to $13 in July.
The Bay Area data cover the entire San Francisco-Oakland-Hayward metro area, of which the two cities’ population is one-third.
L.A. Hotel Jobs Hit By $15.37 Wage
Los Angeles-area hotels saw job growth fizzle after the L.A. City Council mandated that hotels with at least 300 rooms start paying workers a minimum of $15.37 an hour, the highest minimum in the nation, starting last July. The same wage will apply to workers at 150-room locations this coming July.
After growing by 3% or more the prior three years, Los Angeles County accommodation industry employment fell by an average of 3%, or 1,300 jobs, vs. a year earlier in the first 10 months of 2015. Meanwhile, hotel and motel jobs in the rest of California saw steady growth. Preliminary November data show employment bounced back just above year-earlier levels.