If your labor costs go up and the demand does not, you have two choices, reduce your labor force or your profits.So if minimum wage rises, business owners will hire less people to account for the increases in their employees salary? Walmart, Exxon, McDonalds, etc., is that the idea? Wouldn't that lead to a decrease in production for said businesses, which would then lead to a decrease in profits?
What leads to the decrease in production is the lack of demand.