@bgprincipessa Good luck to both of you! I just graduated in May and it did take some time to find a job, and I had to move. One suggestion for not so time consuming volunteering that I do have, is conferences. If you live in a big city, or a place where there is a regional library association there is at least one conference once a year. It's usually only for a few days, and you often only have to give a few hours of time, usually doing something like manning a welcome desk or helping people set up their presentations. You also usually get access to the conference for the day you volunteer, which is a great way to meet people and network.
@apples and oranges In Canada as Masters is a requirement for most (maybe even all) PhD programs, unlike in the US. I think that figures into the funding. Most people I did my MA with had either a federal or provincial scholarship, and that left the university able to use their own scholarship to fund the other students like me. My scholarship covered my tuition plus 100 dollars each semester for textbooks. I also was guaranteed a TA position that paid my rent and phone bill.
@Megano! Just so you know there are other Canadian government-funded internships still open to you if you graduated in the past 24 months and you are under 30. I just started a short contract with a library that has a grant from Young Canada Works. It's supposed to help underemployed or unemployed recent graduates and it helps out small organizations that can't afford to hire staff for a special project.