Many believe that it's easier for an employed person to get another job than it is for a jobless one. That doesn't seem to be fair. Why does a hiring manager prefer to hire a currently employed person than another candidate who really needs the job?
It really depends on how long the person has been unemployed and why they left the last job. Because of federal law there's only so much an HR department can tell a prospective employer about a last employee so the person who's unemployed can very well be BS'ing as to why they left.
I've always heard that, but I don't know how true it is. I think Dan's right that it depends on how long a person has been out of work and why they left their last job. I think it's probably harder for a man who has been out of work for 5 years to explain why he hasn't worked than one who has been unemployed for a few months.
Good points everyone. Considering the facts, I think it's better for you to always be working when you are applying for a job. You can be working full time, part time or freelance jobs, that doesn't really matter.
I think it also depends on the field. If someone who works in a skilled trade loses work, and stays out of work for a long time a perspective employer may worry about the person skill level getting rusty.