How do i deal with working with horrible co workers and a bad boss?

i know there it is really hard to find jobs out there, but i am going insane. I remind myself every day that I am lucky to have a job. that is the only think that keeps me going to this place still. i have been at my place for about 7 years. for the most part every one got along. now it seems that people are unhappy and taking it out on one another. i have been miserable for about a year now. i never really had a problem with people there, now, i can't stand some of them. it started when this a****** got hired there and immediately befriended the maneger. because of this guy, our good boss that we all liked got canned. he started bossing everyone around before he got promoted. he has thrown myself and many others under the bus to make him self look good. myself and seven other people tried talking to the maneger. since this guy is his favorite, he wouldn't hear it. out of fear, we kept our mouths shut and put up with it. this guy makes everyone's life hell, but there are no jobs out there. the manager is a cold hearted prick. now co workers are arguing to each other. i have seen people treat each other badly. i have also been treated rudely by other co workers that i have know for years. it's like we can't stand each other or our boss anymore. the moral is low because another lay off is always looming near. not only is it a bad place to work, but i also have to fight to keep my job. I have been secretly looking for another job for about six months now. I have had not one call. i can't stand this place anymore. i know that when the economy picks up, people will drop out like flies. i am sick of this place, and the kiss a** prick who wants to be in charge.