Today's increase in the minimum wage may lower the numbers of people being employed.

The increase of $1.20 an hour to $18.90 is going ahead despite business groups calling for a deferral amidst Covid-19.

Infometrics Senior Economist Brad Olsen told Mike Hosking it'll put employers and potential employers in a tough position.

Olsen says not only is it going to be a mathematical nightmare, employers face tough times.

"It could push employers to make harsh decisions around how many people they may keep on or cut and how much they're paying them."

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