I had the same experience myself! I wasn't even 40 yet (only 38) when I lost my job, but no one wanted to hire me after that. It was either I was "too old" or "over-qualified." The only companies willing to hire me were call centers, those that do surveys or market research.
With so many people applying for work, age is probably one of the deal-breakers companies are looking for in a candidate these days.