That's one way to look at it. Another is, if people wouldn't accept jobs that don't pay a living wage, wages would rise. Supply and demand and all that.
Unskilled labor needs to be cheaper than mechanization or it'll become mechanized labor.
(Which is why I don't see automation as a bad thing, even only taking into account the effect on the job pool.)
For instance, what is a living wage for a college student can be very low. My college job started at $7 and it paid my living expenses. Similarly, if one person in the household is earning enough to cover the bills the partner might be content earning enough for luxuries.