What to do when a thesis adviser refuses to recommend me?
This is a tricky situation, and it's hard to interpret it without more information.  Thesis advisors certainly have an obligation to help their former students within reason and to recommend them for appropriate positions.  An advisor who gives up too quickly on a student is an unsupportive jerk at best (and it's easy to think of much worse descriptions).  On the other hand, nobody has an obligation to recommend a candidate they cannot honestly support.  Telling someone that is really awkward, especially when it's their own student, but the alternatives are writing a dishonest letter or writing a letter that undermines the candidate's chances, neither of which is any better.

Based on what you've written, there's no way of telling whether your advisor is a jerk or the two of you are just caught in an awkward situation.  I'd recommend asking your advisor some key questions:


Are there other positions you could apply for that might be a better fit for your background and accomplishments so far?
Based on your unpublished work, how could you prepare a good paper as quickly and efficiently as possible?


Hopefully you'll get encouraging and useful answers.  If you and your advisor can work out a plan that satisfies both of you, then that's great.  If not, you may have to give up on your advisor and apply with letters from other people.  That's far from ideal (the first thing everyone will ask is why your advisor didn't write a letter), but it can work if you get strong enough letters.

Of course publishing would help with getting strong letters.  Ultimately, I'd bet that publishing another paper or two is in your best interests, regardless of the situation with your advisor.  I can understand that it's upsetting to feel forced into publishing on your own, with no job in your field and no guarantee of getting one in the future.  However, it's probably a worthwhile investment of your time, and it's a valuable contribution to the academic community in any case (so regardless of what happens, it's something you can be proud of).