Just no to this.... your biggest mistake is your lack of confidence that you can get a job, it sounds like you've said it so many times now over the years to job sites and jobsearch requirements for your benefits that you've completely convinced yourself that's the case.

There are literally jobs everywhere for every person around, you know when you go to a public toilet around your town? you know those don't clean themselves right, there are people who get up each morning and do the rounds cleaning and changing papers in those and they probably take home a decent enough wage to be able to support themselves, anywhere you look, everytime you go and collect your welfare payments you're in a building which has possibly hundreds of employee's. Unless you're living on a desert island and you're the only inhabitant then you can get a job.... if there is one other person on the island you can make money from them even if you gotta get down on your hands and knees and work hard for it!

Only people with jobs have this false belief that everyone can get a job because they were lucky to find work.
Long term unemployed with many barriers are less likely to ever find work and may become unemployable.
I have not worked for 10+ years and I have accepted I may never work again.
I have applied for thousands of jobs all online
It does not matter what I put in my emails, still no response at all.
I send 5 to 10 emails per week that is how I got to thousands of jobs applied with no response, all emails.
I have no requirement to look for work because I am on the disabled pension for my complex issues.

You should rethink your strategy. If you realized that sending out countless emails with the same content didn't work, than how about modifying the content to make it more appealing or even call them?

When I was looking for a company for internship I took a phonebook, looked for certain companies and called them until one said yes, come visit us.

You can also use xing, where lots of headhunters are looking for new people. 

There are plenty of options to get a job, but you sound like doing the minimum, it's not working for you and everyone else is at fault.

If you’re not required to look for work this does open different avenues for you  

Have you any interests in art/literature/music or similar fields which are usually difficult to make a living wage from? It’s a good opportunity to slowly develop in the field without the pressure of financial ruin. 

There’s also volunteer work or hobbies. The SES is a great place to develop practical skills and meet new people. 

Maybe try taking some time off from applying for work. Focus on your health, living space and general enjoyment of life to put yourself in a better headspace. 

Yes i fully agree on this,i also think he needs a more personal approach like 1 on 1 chats or so to begin with.

A public forum minus judging might be almost nonexistent i fear.

https://forums.whirlpool.net.au/archive/1494619

You have found the local job market a hard job market to crack despite applying for lots of jobs. 100+ people applying for the decent paying jobs. When super markets and fast food chains reject your applications it just shows that you must be the worst job applicant.

Social networking and related experience tends to be the most important thing in getting jobs. What if you do not have a good social network and have little or no related work experience? You naively believed completing a tertiary qualification would lead to a job but it was not the case.

Is there anyone out there who has been in the situation as described here?

My issues make it hard for me to randomly call strangers or approach strangers in person seeking employment.
I stick to emails only so I can apply for more and well it does not hurt my feeling that being rejected in person.
I can not handle dealing with people that I do not know in face to face interactions.

I have considered doing other courses + no relevant experience, more time wasted, the cost of the courses. I decided not to do further study that only makes me over qualified for menial low end jobs.

I considered the idea of running my own business and becoming and entrepreneur. Why be a slave and be underneath a boss? When you can be your own boss and be self employed. Work your own hours, any time you want. I really hate the hierarchy system and I have a disregard towards authority. I could not come up with any good ideas for a self employment business which costs nothing in set up costs.

Here's a list of 50 things that you can do to earm money from home: https://scottalanturner.com/50-legitimate-ways-to-make-money-from-home-in-2016/

Maybe some things there may be interesting for you. If so, just give it at least a try.

This might be a shot in the dark but...how sexy are you and how open are you to the idea of nude roller skating?

This is gold! :D