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I just don't see how productivity gains (e.g. automation) in an industry would lead to increased demand for workers in that industry. I feel like it should be the opposite.

Maybe except for brand new industries in the early stages but then I don't think productivity is measurable in such young industries because there would be no meaningful productivity metric to use to make any such analysis.

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In theory, productivity gains on automobiles leads to cheaper cars and increased car sales. So an increase in workers is possible.

But I agree that looks like a questionable assumption. If the productivity improvement changes car prices from $250K to $25K, sure the assumption will work out. But not sure $25K to $24K would work out.

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