A new Living Wages Report for Newfoundland and Labrador shows that the gap between minimum wage and a living wage is widening, but raising minimum wage is not something many small businesses can absorb.

Atlantic Chamber of Commerce CEO Rhonda Tulk Lane says many businesses have been caught in the middle, facing rising costs and a shift in consumer habits.

She says it’s become a tough topic for businesses, and many smaller shops aren’t able to raise salaries.

“I would say (the report) wasn’t a surprise. It’s a tough conversation, just like all the ones we have now. These problems aren’t easy to solve. So finding that balance right now, small businesses can’t afford increases. So we’ve got to figure this out together. And how do we solve this problem?”