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That blows, Pam.
It's a horrible catch-22 to find yourself in: can't get a job unless you have recent work, can't have recent work without getting a job.
One possible tactic is to try and get some voluntary/unpaid work. See if any of the charity (thrift?) stores need volunteers, or if any campaigning charities need people to canvass/deliver leaflets etc.
Being able to show that you've been doing something even if that something isn's paid work in the standard way, can help give a very different picture of yourself. It suggests initiative and a work ethic. It's also usually a good indicator that someone is a 'team player'.
Not an immediate solution, I grant you, but worth considering. Whilst you are job-searching for paid work, keep an eye out for volunteer opportunities. You won't make any money, but usually you'll get your travel expenses and maybe a meal for your trouble, so it's unlikely to add to your costs too much. It also might be useful for you, if you've had an extended period out of work, to do some volunteering, where the stakes are lower and you can ease yoursef back into the working life.
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