Joyce, that's really tough and I can appreciate what your son is going through. I work for the Federal Government and if I lost my job here, it would cause me to start over again. I don't have any college level education and was lucky enough to be in a position to create a job as a contractor and got converted to government.
I'm sure your son's challenges have nothing to do with is abilities and more to do with the incredible let down of a job disappearing regardless of how effective he had been at it. Hopefully he will be able to remain positive enough to make a transition, even if he needs to take a temporary step back. He just needs some professional success at this point to return to that capable positive feeling.