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Freeholder William O'Dea speaks during the raise the minimum wage rally held on Oct. 22, 2013 in Journal Square in Jersey City.

(Alyssa Ki/The Jersey Journal)

TRENTON - For the first time since voters approved a state constitutional amendment last year, New Jersey's minimum wage is increasing to keep pace with inflation, by 1.59 percent in January, app.com reported.

The measure overwhelmingly approved in November 2013 also raised the minimum wage by $1, to $8.25. When the latest increase takes effect in a few months, the new state minimum wage will be $8.38 an hour, or about $5.20 more per 40-hour week. The increases will continue to kick in annually thereafter.

Gordon MacInnes, president of New Jersey Policy Perspective, which lobbied on behalf of the amendment last year, estimated there were 400,000 workers in New Jersey making less than $9.25 an hour.

"Increasing New Jersey’s minimum wage will give nearly half a million working New Jerseyans a crucial leg up while pumping hundreds of millions of dollars into the state’s economy,” he said.

Some business leaders feared, however, that the bump in minimum pay would have a negative effect on job creation.

New Jersey is one of 23 states with a minimum wage higher than the federal minimum of $7.25 an hour, and one of 14 states whose wages are indexed to inflation in some way, according to data compiled by the National Conference of State Legislatures.

Paul Milo may be reached at pmilo@njadvancemedia.com. Follow him on Twitter @PaulMilo2. Find NJ.com on Facebook.