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Businesses getting worried as minimum wage will increase to $12.50

This week we learned that the state’s unemployment rate fell from 9.2% to 8.4%. On the surface it’s good news, but many are concerned about the state of the economy overall as cases surge, and business slumps.

We also learned that New York State would continue forward with a plan to increase minimum wage across the board. In Upstate New York it means minimum wage will jump from $11.80 to $12.50.

Ken Pokalsky, who is with the Business Council of New York State told Spectrum News that businesses desperately need help. While Governor Andrew Cuomo has contended that the state’s targeted approach to shutting down in micro-clusters – the reality is that many businesses are seeing a fraction of total output.

DiSanto Propane (Billboard)

That’s a huge problem.

“At a time when we’ve been begging Congress for financial help to struggling small businesses, it seems the wrong time to be imposing increased costs on sectors that are struggling to hang on, let alone recover,” Pokalsky told Spectrum.

“These are sectors that are still hurting,” Pokasky said. “Their revenues are not going up, or they are growing very slowly. They certainly haven’t recovered. So it’s going to be a challenge for them just to keep the jobs they have today, let alone grow. This isn’t going to help.”