No. People who don't exist don't experience anything.
And there are plenty of people who are born and who as adults wish they had never been, and a lot of us who are still ok with it but not very excited are still biased since we do exist. This is not a problem for those who are never born. They don't become people who can feel pain and suffering.
There are plenty of people. I really doubt that an increase in people is in itself a reason for increased happiness. Noone is arguing for exterminating parts of the not needed population because of automation.
If a person's body is unhealthy, we don't encourage them towards greater unhealthiness, but rather health. The same with mental health. We should encourage mentally healthy perspectives, which includes self value.
Plus, it isn't obvious that all the important stuff can be automated.