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California's $16 Minimum Wage Insufficient Amid High Living Costs, Reports Find

Despite being among the highest in the U.S., California's minimum wage struggles to meet the living expenses of its workers, particularly in housing.

  • A new report by the nonpartisan Legislative Analyst’s Office highlights the challenges low-wage workers face in affording housing despite California's $16 hourly minimum wage.
  • The majority of low-wage workers are home health and personal care aides, with fast food workers making up the second largest group. This may change with the industry's upcoming $20-an-hour minimum wage.
  • Nearly 60% of low-wage workers are Latino, and about half of these are immigrants. Most live with at least one other worker and have no young children.
  • California's major metropolitan areas and much of its Central Coast are unaffordable for minimum wage workers, with some rural and mid-size metro areas being exceptions.
  • The report suggests the Legislature consider setting different minimum wages in different regions or helping local governments coordinate their minimum wage policies.
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