My Dh's job search has been tough, since many companies are now instituting hiring freezes. The best advice I can give is to keep up the job search, even when there appear to be a few possiblities on the horizon. I can't tell you how many times DH has been the second choice candidate, after two or three interviews, face to face visits, etc.

Job searchers have to try to keep up the momentum every day. Don't take time off to relax for a while, you need to start right away. Spruce up your resume, let your friends know that you're looking. Start that "networking" right away. My Dh approaches the job search as a job in itself, which he works at every day. It's hard to keep your chin up, but there's no choice. These days, there's no stigma to being laid off anymore. Everyone has been through it. It's a reality of our economic situation.
Best of luck to your neighbors! I hope they find something soon.