The minimum wage outside of the New York City metropolitan region will grow to $12.50 at the end of the year and $14 in the suburban counties, the state Department of Labor announced on Wednesday. 

The announcement came alongside a report on the state's economic picture, which has been tarnished by the COVID-19 pandemic. New York's unemployment rate in October stood at more than 9%, with the highest unemployment rate in New York City. 

The pandemic itself has hit low-wage service industry and hospitality jobs, especially in restaurants and bars. 

But the report pointed to a pre-pandemic economy that scored a jobless rate of 3.7% statewide. At the same time, regional economic data shows the labor market is staging a recovery on Long Island and in Westchester counties while upstate New York is not likely to be broadly harmed by a minimum wage increase. 

“Even as we continue to battle the pandemic, we are working to build back in an equitable and just way,” Labor Commissioner Roberta Reardon said. “Before this crisis, we achieved record low unemployment rates while increasing the minimum wage — improving the lives of thousands of New Yorkers — and we will rebuild our economy while continuing to lead the nation in the fight for economic justice. This investment in our workers once again proves that in New York we believe a fair day's work deserves a fair day’s pay.”

Business groups and Republicans in the state Senate had urged the state to hold off on the phased-in wage increase given the economic headwinds New York will likely continue to face in the new year. 

"These smaller employers struggle each and every day to keep their doors open, and invested heavily in safety measures to keep their employees and customers safe from COVID-19," said Senate Minority Leader Robert Ortt. "The state has done nothing to help them."

The minimum wage reached $15 for companies with 10 or fewer workers in New York City.