BusinessNZ says today’s increase in the minimum wage is larger than normal and raises questions about whether some businesses will be able to cope.

BusinessNZ Chief Executive Kirk Hope said some smaller businesses and businesses in the regions might have difficulty affording the increase given unchanged trading conditions.

He said new or younger employees might find fewer opportunities for employment and small businesses could have difficulties maintaining current staffing levels given resultant tighter business margins.

"The minimum wage process needs to be more moderately managed to protect businesses and jobs," Mr Hope said.

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