Getting a job as an Instructional Designer is tougher than I originally thought.

Anyone else have a particular difficult time finding a job as an Instructional Designer after obtaining their masters? I work in online education at a large community college and have three and a half years experience and still can't get an offer of employment. I have been looking since late May.

I have only applied and been interviewed by places outside of the state where I live. I've had countless interviews in this time-span, which is great but it all seems extremely competitive. I was offered a job doing something else in another state but turned it down due to the salary and hopes I could practice instructional design. At the time I thought it'd be easy. Interviews after all were rolling in. They just went nowhere. I have many marketable skills in e-learning development. I've been a web designer and am skilled in Storyline, Captivate, and Camtasia. I graduated my masters program with a 4.0.

Is it just me or is the field completely over-saturated? One position in Austin confessed after rejecting me after my initial Skype interview that while I was a great candidate (they only interviewed the best over Skype) that they had nearly 100 applicants. On top of it all, most places will interview candidates for 3-4 weeks. Obviously it's easy to get lost in the shuffle.

At this point, I'm doubting myself despite having a great skill set. I think I may have to look for something unrelated. Interview committees seem to only entertain "perfect" candidates with 10+ years of experience. Anyone else have a similar experience. What did you do?