Lots labor gets automated away over time, because people naturally demand to do less manual work.

Think about the market for calligraphy or farmers. Both have been reduced by orders of magnitude over the past few centuries due to advancements in technology.

In America specifically, our monetary policy makes it incredibly attractive for us to import goods from other countries instead of make them here. Therefore a lot of our labor intensive industries are shipped overseas, instead of being conducted here. Remote work is the easiest by far to outsource, and when harder economic times hit, it will be the first work to leave.

Deflation is good, but only if it is structurally applied equally. If labor is getting outsourced or preformed cheaper, but the prices of desired goods like homes, cars, food, and energy are going up, it makes for a horrible economy. A Bitcoin standard moves us to the deflation of everything, but until then, the working class is under great stress.