As the need for human labor decreases, costs fall to the floor. This is specifically true for knowledge work that is not constrained by resource inputs. Imagine how much HN would cost to run if it was a newspaper or magazine? This may seem like it's still bad news for humans, because where do the new jobs come from? Yet we regularly see an increase in consumption to compensate for the reduction in production costs. This increase in consumption generally overruns the job reductions due to efficiency. The number of newspaper writers may drop, but the total number of employed writers goes up.
We also see this trend in technology. Early computers took a highly trained team to keep a single computer operating. Now technician to computer ratios can be 1000:1 or more. Yet we seen an increase in total employment rather than a reduction.
> the response to previous waves was a shift to knowledge work.
Computer assisted knowledge work may be precisely the answer to the unskilled and unemployed. Ubiquitous computing made it so that your banker only needs 1/10th the knowledge in order to be effective (when was the last time you calculated an amortization schedule by hand?).
Make it so the "knowledge work" is done by the expert system and the human simply operates the expert system.