http://en.wikipedia.org/wiki/Relationship_of_automation_to_u...
TL;DNR for the Wikipedia article:
People have worried about machines putting humans out of work for centuries. But the unemployment rate has not risen steadily over the same period even as technology has constantly grown. The long term trend (measured since the beginning of the industrial revolution) has been that new jobs are created as old ones are destroyed.
But, nobody knows if this trend will continue indefinitely. There may be some threshold at which technology is so advanced, companies no longer come up with profitable ways to use humans.
To take an extreme example, imagine if we had robots that were smarter, stronger, and in every way more capable than humans. One can imagine a lot of different outcomes in that case. Widespread, permanent unemployment is one of the less favorable possible outcomes.
This doesn't mean the Terminator has to be invented before that technological threshold is reached. Some say we've already reached it, but it's way too early to say with certainty.
In short, technology has improved most lives without harming overall employment throughout the last few centuries, but that doesn't mean the same logic will always hold. The Wikipedia article is a really good read with a lot more detail.