This economy is killing me

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I worked for the county government for many years and I loved my job. I was there from the beginning, when the department I worked in first opened, therefore, I made the most money. The county went through a few lay offs (due to budget cuts) throughout my employment but I was always spared (thank God). It all came crashing down April 2012 when they looked at my salary and decided I needed to go so they could save money. They laid me off and hired someone who settled for half of what I was making. Since then I have gone to many unemployment workshops, had 3 different professionals analyze my resume, applied for every job (even fast food) known to man, and only received one interview so far. During that interview, the owner of the company was opening his mail the entire time and was barely paying attention to my answers. He made absolutely no eye contact and was asking the questions in a monotone, bored voice. It was definitely the strangest interview I have ever been on. Towards the end he said "everything sounds good but I need to know one more thing, do you have kids?" My whole world crashed. I have two kids and I cannot lie about it. I told him the truth but in the back of my mind, I knew that he was not allowed to ask me this question, it's discrimination. That was the reason why I did not get the job. Since then I have done nothing but scour the newspapers/internet, go door to door to businesses, and send my resume everywhere. Nothing. Wednesday I am going to visit a career counselor who is going to set me up with a temp agency. This is my last resort. I am really sick of staying home and being on unemployment. It's terrible. I am the kind of person who likes to do things, save money, strive for higher goals, and here I am unemployed and miserable. I pray a lot but nothing has happened yet. Wish me luck. I will take any job at this point. I have heard from many companies that when they advertise a job, they receive literally thousands of applicants. This economy sucks.