I had the same thing happen in the city I was in, no one was hiring programmers straight out of school, I got two phone interviews and that was it. Ended up losing a bet with my wife (That I could find a job in 3 months) and moving to Austria. Learned enough German to get a job (took about 5 months) and then found out they were desperate for software people here. I got two job offers in my first week of applying, I accepted one and have been with my firm for a year and a half now.