I wonder if at some point some sections of society will voluntarily move to less efficient methods of production to generate employment - aka resurrecting the self sufficient village.
Yes, this might happen eventually, as more and more jobs are automated. Automation pushes down the value of things. So people might start to prefer "genuine" hand crafted items to mass produced stuff, and this will spawn an economy of itself.
If that does occur I'd take it as a sign of some serious problems with social order. More efficient production should see gains for everyone, but a look at the last thirty years suggests otherwise.
If you look at industries with an irreducible reliance on labour (eg medicine, law) then productivity has surged through the accumulation of capital. Programmers today can achieve in minutes what used to take years, because of the accumulation of software and faster hardware.
This leads to the paradoxical situation that as a percentage of GDP, those irreducible-labour sectors begin to loom larger and larger.