Don't internalize things you have no real way of seeing into. Nothing is wrong with YOU just because you cannot get a job. I was trying for about 6 months straight with no results, then gave up and collected a different plan that would work for me.
If you know people in small jobs, ask them if they know of any openings. Networking is the quickest (and often easiest) way to get a job. If you don't know anyone that can help you, I suggest starting to correspond with your local Workforce Solutions center. I don't know about other states, but the people at the ones here get paid to do nothing but help you locate a job.
Keep filling out applications, and keep submitting them, even if you don't immediately think you are 100% qualified for a job. Take the time to tailor your resume to include some of the words that the description of each resume says they are looking for.
You're fully functioning and capable of getting a job. When people say the economy is down and the job market sucks, they REALLY do mean it. 150,000$ educations are being wasted at part-time jobs, people are being turned down for being over qualified now-a-days (which is what happened to me a lot), and there is room for people to be picky with so many applications out there.. they can outsource, and pull people from other states, or people they know. There's a hundred reasons, and HOW you are is NOT one of them. They don't know you, and so they aren't 'rejecting' you. You're just one person in a sea of applicants.
It really is a test of time and patience. It's annoying, but the more resumes you submit and the more variety of work you are willing to commit to, the better. Eventually you WILL be picked up for something. I would try networking first though.