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What should be done with the unemployable people?
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Since this question is asking "should", I think it's fine to answer with a rational but radical answer:
We have all the resources needed to support everyone, and it wouldn't take much extra effort from a determined government to get those resources where they need to go. There's no reason why unemployed people should be left to starve and freeze simply because they don't have enough income. In our society, the scarcity of basic needs is artificial ('artificial scarcity').
Automation is seen as a bad thing, a threat, because workers in society are threatened with starvation if they don't have the income needed for food, shelter, medicine and perhaps basic luxuries. But if our political economy were first-and-foremost based around society's needs instead of profiting, and therefore we used our modern technology to automate the production of these basic needs and distribute them, then suddenly automation would mean free time and easier labor!