I find it hard to imagine a situation in which all real needs can be satisfied without any work being performed by people. I find it equally hard to believe that we will ever see full employment; understood to mean enough jobs to go around. Automation is real, and it's inconceivable to me that the future needs all of us. Thus, as long as we are living under a market economy, some of us will be expendable.
Is it conceivable? Thinking of a way to reconstruct a society in which all the work is being performed by technology makes for an interesting thought exercise indeed. However, some thinkers (such as Andrew McAfee in his TED presentation - see my previous post "The Move Towards Self-Employment") do see the possibility of a life where people are freed up to do other things. Can the currently assumed exchange between work and consumption be broken? Can the current unemployment situation be but a painful transition on to a life that is ultimately better? If money no longer mattered, perhaps some people would still be working and striving, but for different rewards (such as popularity or mere thrill of competition) as one of my conversation partners hypothesized. This possibility has optimists exclaiming "100% unemployment now!" However if we are striving towards this type of society, one of the worst risks we take is that our creations turn on us and we live out an event akin to "The Terminator: Rise of the Machines." On the other hand, the way we currently work is already ruining people's health and therefore slowly killing a good number of us so, if things keep going the way they are, the issue of our welfare becomes moot. Check out this interesting blog post, "Is 100% unemployment realistic, desirable, and statelessly doable?"