Addressing the question in the title, "What happens if an entire class of workers loses faith in their careers", look at what happened to printers. That was a good skilled trade for centuries. Then it just went away. Phototypesetting took the high volume end. Desktop publishing took the low end. Computer-controlled presses took press operators. And then the newspaper business died. I've heard homeless former printers…
It seems to me these changes are much more daunting if you live in a country where no job means no health insurance, and where the pay gap between skilled and unskilled work is huge. That makes an existential question about work into a very material one.