Should I be applying for positions if my applications were rejected last year and not much have changed since then? Please advise
You should probably be applying but with a broadened scope. Times are tough, both generally in academia and due to the pandemic. What was true this year may not be true next.
The ease of getting a position in a given academic field varies fairly wildly over time. There are downturns and also good times. But, unless you want to give up and become an Uber driver, you need to keep looking.
But you would be wise to expand your search to other sorts of institutions that rejected you last time. Cast a wide net. In fact, you may need to keep trying for more than a year, given current conditions. And bring other resources to bear to help you. Make sure that you have a strong application, matched to requirements with good letters of support. Get, and take, advice from advisors and others who might be able to help.
Times will change, but it will take time for it to happen. Stay connected to your field as best you can and keep producing as is possible.