There is work out there for people, its just people are picky most of the time. I have been laid off 2x in a few years and each time had a job in less than 30days. I give interviews occasionally and we test the candidates and you should see their faces when we tell them that they will be tested

It is a good practice I think it weeds out the people that aren't telling you the truth on their resume.
But people still looking couple hints: be truthful in a interview, its ok to say you don't know something, be yourself and relax.
We hired a QA engineer and got 100+ applications and we did 5 interviews. So if you are getting that interview your doing good already. Now they want to see how your attitude is and whether you will be a fit on their team. Make sure you look into the average salary of the position you are applying for.