It, never has, in fact the opposite is true. Every type of automation has expanded the economic output so much that it created massive amounts of labor demand, which is why cities early absorbed masses of underemployed workers during the industrial revolution. One famous example, there are now more bank tellers than before the invention of the ATM.
In fact you can go to any poor country with no automation and you'll find entire classes of un- and underemployed people. This is a condition of premodern, not technological societies.
The entire AI debate rests on the speculative claim that it is not merely an automation tool, but a sort of sci-fi wholesale replacement of human beings, contrary to what happened during earlier waves of automation.