Demotion is a crucial part of the unemployment mechanic and was made this way on purpose. It allows for a higher degree of economic warfare and makes living standards matter more. Consider for example that you have specialized your planets and have only 1 main producer of minerals. When this planet gets temporarily occupied a war, you quickly lose the ability to keep your alloy foundries open, leading to a great deal of unemployed specialist forcing you to come to term earlier or suffer low stability on the planet.
High living standards allows you to mitigate this by haven lower unemployed unhappiness and quicker demoting times, all at a higher upkeep cost.
High living standards allows you to mitigate this by haven lower unemployed unhappiness and quicker demoting times, all at a higher upkeep cost.