Applying for the perfect job and getting turned down can be a real disappointment, but you need to persevere. You cannot control the quality of the other candidates. It doesn't matter how well suited you think you are to a position; someone else can always snatch it from you with a better interview, more qualifications or experience.
Applying for jobs online is much easier than trawling through various newspapers. On job search websites you should be able to find several similar positions which you can apply for simultaneously, no stamps required and your applications are delivered within seconds rather than days.
When you start to treat employment like a marketplace, it is easier to accept that you won't be asked to interview for every job. You need to hedge your bets and apply for as much as you can. Try to tailor each CV and cover letter for the job you are applying for, and don't spend too long agonising over waiting for a response. Send your application and then move onto the next.
In the short term, perhaps you should consider temping. There are many great (and some not-so-great) agencies out there who recruit on a daily basis. Remember that often, even temping agencies can pick and choose who to find work for. If you go to their offices they will ask for a CV, make you sit a short computer literacy test and ask you what kind of work you are looking for. The majority of the work agencies get is filing, archiving, administration and secretarial work. They're looking for people with good communication skills and computer competency. If you sign up with an agency and they don't find you any work, keep turning up. Turn up at 8.30 in a shirt and shoes, as often agencies will receive a call in the morning from an employer wanting to employ a temp that morning.
Personally, I found temping gave me the motivation and order in my life to go and find a job. I was checking my emails at 8am every morning, and spending half my lunch break on the internet doing job searches. Also, just speaking to bosses, managing directors and other staff at the company I was temping at gave me the confidence and "can do" attitude in job interviews.
Whatever you end up doing, enjoy it, and don't blame the world for your own failings.