This reminds my of my job search 5 year ago after I graduated college. It took me 8 months to land my first job and I was living with my mother. I did work on some side projects to build my knowledge on some technologies. When my mom asked me what I was doing and I said I worked on project 'x' she would say "I think you should be sending out more job applications instead." Working on side projects is not an option for everyone.

What did get me hired was neither working on side projects nor blanket submissions of applications. A friend introduced me to another friend who's company he worked for was hiring and he gave me a list of open reqs for jobs he knew managers were looking to fill. I got two calls for interviews the next week and got an offer for one job by the end of the month.

IMHO your network, not even what you know or what you've done, is your most important asset when looking for work.