This only tells one half of the story. Because rent extraction is so high in modern western economies usually people have next to no savings and are always two

This only tells one half of the story. Because rent extraction is so high in modern western economies usually people have next to no savings and are always two pay checks from ruin. If people had more financial independence they would be able to choose to enter the labour market or not. For example now due to high land costs both parents must work. Some may like this, but many do not, yet they have no choice. This puts pressure on the labour market. The current system sees rent rise to extract all productivity gains. Until this ends we will always see unemployment no matter how productive we become even if it's very clear that most people need not work full time to meet the needs of the country as a whole. Millenials have spent their whole lives in a system with very efficient rent extraction. If productivity jumps land prices will follow and back again we go to the bread line.