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I had a friend who spent a long while out of work in their 20's because they had a mental breakdown and quit a well paying job. They later told me that it was less a choice to quit, and more the knowledge that if they continued there, they'd end up killing themselves. They knew that being unemployed would likely be just as torturous for their mental health, but it would at least be different.
This is all to say that I reckon that for many, choosing to be unemployed is probably an irrational choice, but when you're not doing well mental health wise, you're not necessarily going to be able to make rational choices.
I think you're right that everything being fucked at the moment is probably a key driving force here, and it's why I worry that even throwing a heckton of money at mental health services wouldn't be enough. It's also why Reform are doing so well in the polls โ people are desperate for something other than the same old stuff that we have seen from both the Tories and Labour, and Reform are the only ones offering something different. It's a shame that the "something different" that Reform is offering is nothing but a scapegoat painted to look like a real alternative