Leveling up as you are presenting it tends to deal with efficiency and task allocation. In the case of increased efficiency, this leads to a need for fewer of those employees (eg your move from 30% to 3%). So 90% of those people, or 27% of the overall population needs a new job. Maybe a lot of those people move from the primary sector of farming to the secondary sector of manufacturing. But even with shuffling with other people in other jobs, a some will not be able to make that switch. As you move from a secondary to tertiary sector economy (people designing the machines), the number of people unable to make that jump increases.

I believe that economies making jumps from 1st to 2nd and 2nd to 3rd will be able to benefit. However, I'm skeptical that 3rd level economies will be able to benefit without significant pains due to population level mismatches of required skills to competencies.