It's succeeding brilliantly. The purpose of automation is not, and has never been, to free people from work to pursue lives of leisure and intellectual stimulation. Its purpose is to concentrate the wealth created from labor into the hands of the ownership class without having to lose any of that wealth through hiring and compensating a human workforce.

When the number of jobs available to the labor pool is reduced by automation, the market value of human labor goes down, but the amount of work humans are required to do to survive remains the same, or often it increases to take advantage of the efficiencies create by automation. Obviously, people will tend to wind up either unemployed, because there are fewer jobs, or working harder for less money, because their time is worth less.

This isn't a failure of the system, this is the system working as intended.