Six months of hard work and I did what everyone back east said I wouldn't be able to do: Find a government job in the SF Bay Area. I was offered and accepted an administrative position at an East Bay municipality. Not exactly on a par with the Mayor of San Francisco, but a good start.
It was a tough, sometimes frustrating experience, but also a valuable experience that taught me some lessons and busted some myths. Now, I came to the Bay Are from Detroit with eight years of experience in the public sector, so I had a leg-up that a college graduate might not have. Therefore, what I have to say may really apply to those who are not just beginning their careers.
First of all, be prepared for a long search. It may only take you a week, but it may also take you much longer. I know other people in the city who took nine months to a year to find their jobs (finance, biotech, etc) in other fields, even though they had just as much experience as I did.
Second, try to choose a city where you know at least one person. I had the good fortune of living with my girlfriend who was already employed, so I knew I would not be homeless. Yes, I started feeling like Kevin Federline, but at least I knew where I would be sleeping.
Temporary agencies are useless! At least they were useless in my case. Jackson Agency didn't even want to touch me because I had "too much experience" and they only wanted to send out slaves to do typing and filing. I sat there and argued with him, insisting I was dying to get out of the apartment, help pay the bills and avoid Judge Hatchet. Finally he agreed and put me on the list, but they never used me.
Yes, you CAN be overqualified. The first interview I had in the Bay Area was at a local university where my interviewer, in so many words, was concerned I that may not stick around. If you want to apply for jobs where this may be the case, make a "stupid resume" that doesn't list all of your qualifications, and don't show off at the interview.
Don't restrict yourself geographically. Some applicants take forever looking because they only want to work and apply within the city, itself. My new job is in the East Bay, just a relatively short BART ride away (and City Hall is just across the street from the station) and I interviewed as far out as Martinez (a BART AND a bus ride away). Public transportation can be wonderful, but it is a judgment call. You have to decide if the job is worth the time and expense of getting out there, and whether you might consider relocating outside city limits.
Find a hobby or some distraction while you look. Being a dad, I had no time to get depressed or feel sorry for myself. Find a hobby or volunteer work. If you're a parent, spend more time with your kids. My unemployment coincided with the birth of my son, so I got to spend the first six months of his life with him and for that it was a blessing in disguise.
Finally, don't give up. Keep plugging away. The weekend before I was hired, I was devastated when I was turned down a position I wanted very much. Two days later, I picked myself up; I put my suit on and went to the interview as if nothing happened. I also wanted this job badly, but when I walked in the door, I decided, "I'm going to make them think about me". I did the interview, went home and the rest is history. So, no matter how frustrated you get, keep going. Put your suit or dress on and approach every interview as if it is your first and last. Some people may advise you to give up, but don't listen to them, and chase your dream with everything you've got.
No matter how crazy things get in this country, I still believe in the American Dream and I hope you do, too.