<p>The newspaper (reportedt that) (having) the increase in the minimum wage, (many people) are still having trouble (making) ends meet.
The answer is (having). But can someone explain why?
Thanx!</p>
<p>You need to have something like “despite the increase” or “even with the increase” because in the first part of the sentence there is the idea that wages increased and in the second part people are having trouble making ends meet.</p>
<p>But why can’t we understand like this: many people have the increase in the minimum wage but still have trouble making their ends meet?</p>
<p>a little revision on the sentence you suggested would make it also a correct answer. (many people have an increase in the minimum wage, but still have trouble making their ends meet)
Many answers are considered correct; correct answers depend merely on the answer choices that are offered and really the BEST answer choices. Some answers can still be correct but another answers are better. 
The whole point of this question is to see if you recognized the relationship between the two clauses of the sentence as gman states. The relationship of the two parts of sentence is a contradiction. ALTHOUGH there was an increase in the minimum wage, many people STILL have trouble making ends meet.
Hope you got it. :)</p>