Rejected from a job because lack of experience.

Had an interview yesterday for a retail job. Got an email today saying I didn't get the job because of my lack of experience. I apply for jobs to get experience. Prerequisite experience is required to work at jobs. I'm stuck in a rut. Almost a 21 year old university student and I've had a total of 18 months of working experience in my life - and that was at McDonalds. I also spent a year working with my grandfather building / painting, but I'm not technically qualified so I can't put that on my CV. Doesn't help when my state has the worst unemployment rate in the country. Got any tips to land a job, flood?