PROVIDENCE, R.I. (AP) — The Rhode Island minimum wage will increase by $1 this week rising to $11.50 per hour.

The pay raise approved earlier this year is less than some advocates say is needed and larger than some businesses say they can afford, the Providence Journal reported.

The National Federation of Independent Business wrote in a news release Monday that small businesses like food service, retail and hospitality “struggle to recover from months of shutdowns and restrictions,” and that owners cannot afford higher labor costs.

“For many of the hardest-hit businesses it may be the final nail in the coffin,” it added.

Rhode Island’s minimum wage remains lower than neighboring states. Massachusetts’ wage is set to increase from $12.75 per hour to $13.50 on Jan. 1. Connecticut’s minimum wage increased from $11 per hour to $12 on Sept. 1.

The liberal Economic Progress Institute said Thursday that it’s good news the minimum wage is increasing but called for more to be done.

“The pandemic has shown us that many essential worker positions, such as caregiving jobs — homecare, nursing home and child care workers — are jobs we need for the economy to run and are ones that can’t be automated,” EPI Executive Director Rachel Flum said.

“These are low-wage industries who struggle to find staff and our lagging minimum wage will contribute to our not having enough workers if we don’t quickly get on a path to $15.00/hour.”

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