Demands from unions to increase the minimum wage while the economy battles the ongoing effects of the pandemic have been slammed by business groups.

The ACTU is calling for a $30 a week increase, or about 80 cents an hour, which they say will help workers spend and stimulate the economy.

Australian Chamber of Commerce and Industry CEO James Pearson tells Brooke Corte an increase in wages will result in a decrease in jobs.

“This is not the time, this is not the place, to have a significant increase in wages,” Mr Pearson said.

“I can’t believe the union movement is asking small business people to choose between giving people jobs and giving people a pay rise,”