Countries with generous (compared to USA) per circumstance income transfers don't generally have a big problem with this. People have a pretty basic need to feel useful to society, and for status. It does raise the bargaining position of the employee on the job market somewhat for the low end of the job market. But it's just much better for everybody if cleaners and janitors get respected a little more by their employers and aren't just a pink slip away from the gutter.

And UBI will do better in this respect than per circumstance income transfers since you get to keep all the money you earn on top of it.