Depends. If population is falling everywhere, you can't have things like free healthcare or pensions, barring some medical miracle like eternal youth.
Even if you allow immigration, you're only draining something else of its population, and that's not sustainable.
> working shortages will increase the demand for automation and result in worker dignity.
That depends on power distribution. If Amazon automated its processing center, do you think that workers would benefit or just Amazon? Plus what jobs would the newly laid off be given?
But giving workers power isn't a solution either. Give them option to choose, and their jobs would never be automated. It's not in their interest to be made expendable. Not to mention the their ego would be bruised if they knew they could be made expendable.
Falling population is good, working shortages will increase the demand for automation and result in worker dignity. We simply need a fuck-ton of immigration to amortize things a bit, until we get to post-scarcity post-growth steady state in 2100.