Let's say your skills are not up to par. It might be the truth. What next?

There's cognitive dissonance going on here - you are not worthy but you need the money so there's no choice but to be worthy. Your brain has both of these and it's freezing up. That's the part you need to fix.

I might not be worthy either. And possibly not even due to any kind of rot, but because all these brilliant people are competing for the same jobs and willing to do it for cheap.

Personally, I took up entrepreneurship because it's a lot easier to get funds these days and it's safer than all these layoff cycles. What's the point of a full time job if job security is a thing of the past?