Adding a layer of overseers adds a layer of cost to a marketing decision. Areas with high levels of automation and effecient production include food processing such as making cheese, semiconductor manufacturing, automobile welding, painting, ammusement park rides, etc.
What can government oversight do besides drive up the cost for the remaining US manufactures? The decison to automate is a business decision.
Government regulation should only intrude in safety such a OSHA guidelines. Anything beyond that is wasted resources and a higher cost of doing business.