an applicant being unemployed is certainly not a deal killer
i've hired lots of both types
but as a business owner hiring people is a bit of a "crap shoot"
it's like drafting a college player into the NFL ...or finding a spouse
you never really know what your getting
you look for clues and try to make as good of an "educated guess" as possible
just like in the NFL or dating....you go thru many...to find a good one...and it's costly
so when an applicant comes in and says "well I been outta work the last 3 years....just cant find anything"
that's a one clue for me...not the entire picture....but a clue
because no matter if I was a lawyer, doctor, PHD Professor, CEO, CFO...whatever
I would never "not be able to find anything in 3 years"
I'd wait tables, paint address numbers on curbs, sweep floors, wash dishes, be a security guard....I'd do something
so for an employer there is an aspect of wanting people that will do anything to survive
you want people that are self motivated...that get up every morning just simply unwilling to sit at home
but again it isn't the whole enchilada
there are frequent cases where an unemployed candidate would be better than the employed applicant
this isn't an exact science
but i can certainly see how this plays into one part of the big picture decision
just like someone telling me in an interview they've had "tons of health problems the last 5 years"
someone saying "i haven't been able to find a job in years"...all things equal is definitely not a plus.