Some are converting to disability, while others are dropping out of the labor market altogether.
That is not the same as collapse, and the American labor market demonstrates that.
Daniel S. Hamermesh and Biddle, Jeff E. (1994): Beauty and the labor market.
An area of economic exchange in which workers seek jobs and employers seek workers. A “tight” labor market has more jobs than workers. In a “slack” labor market, the reverse is true.