One of the key points when looking for employment - especially in this tough market, is to be persistent. Look high and low, ask friends and family, use old contacts, and most importantly never give up.
When I was unemployed I made it my personal mission to apply for a minimum of 5 jobs every single day (yes even on the weekends). I always tried to apply only for jobs that I could see myself being good at or enjoying. There is no real point in applying for jobs you know you are too qualified for - or might dislike. You do not have to settle for a job you know you will hate - I can tell you from experience - it is better to be broke and looking than have a little cash and miserable.
If you find yourself at a crossroads on your job search just keep in mind that regardless of the economy - there are always people who are looking for employment. Lift your head up high and keep searching - your next big gig could be right around the corner.