Arizona hikes minimum wage by 50 cents

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(Source: 3TV/CBS 5) (Source: 3TV/CBS 5)
PHOENIX (3TV/CBS 5/AP) -

The minimum wage is increasing in Arizona with the arrival of the new year.

The state's minimum wage rose Monday by 50 cents to $10.50 an hour and will go even higher in Flagstaff.

Arizona's minimum wage stood at $8.05 an hour as recently as 2016.

It is the latest pay bump following the passage of Proposition 206 last year that will eventually raise the minimum wage to $12 an hour by 2020, with further increases linked to inflation.

[RELATED: Arizona minimum wage about to go up]

Flagstaff ushered in the new year with a minimum-wage increase of 50 cents to $11 an hour.

Unemployment has fallen across the state in recent years.

In total, the state added 44,000 jobs this year, bringing the unemployment rate down to 4.6 percent from 5 percent one year ago, according to the Arizona Office of Economic Opportunity. 

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