Florida's minimum wage increases to $7.21 an hour on New Year's Day, a jump of 42 cents for roughly 400,000 workers.

The increase, which is based on an annual consumer price adjustment, translates to an extra $16.80 for a 40-hour week.

The state's minimum wage went up to $6.15 an hour in 2005 after voters had approved a constitutional amendment the previous year. It has now increased another $1.06 since.

Supporters say the increase is desperately needed because Florida has the highest rate of job losses in the country and 10 percent of all Floridians are on food stamps.

Business groups, however, don't like the wage hike because they say it will limit the number of jobs available, especially during a recession.