That's an argument for needing fewer people, not more - since it happens in situations where it's less labour-intensive to repair shoes than to make them from scratch.
Not necessarily. If the materials are expensive, paying somebody to repair a shoe can be the cheaper option.
I think people still repaired socks after knitting them was automated for that reason.
The first automated knitting machine was from 1589. Queen Elizabeth I denied its inventor a patent “because of her concern for the employment security of the kingdom's many hand knitters whose livelihood might be threatened by such mechanization” (https://en.wikipedia.org/wiki/William_Lee_(inventor))
Edit: maybe not. https://www.historylink.org/File/5721 learned me that gear for us soldiers in World War One was knitted manually. Maybe, those machines weren’t used (much) yet by then?