Quote from Bolts:
I was *practically* unemployed recently. But I played it off as being a student/self-employed. I had quit my job, spent some personal time self-teaching myself some new skills and I did get one brief freelance job during that time. I was honest about it on my resume and in interviews, and I was able to find a good job in a few months.
Its just hard to accept that someone can be unemployed and have NOTHING going on that they can put on their resume. That would raise a red flag for me if I was hiring. Definitely a bad idea for an employer to put it so bluntly, though.
Although really, they're doing the unemployed a favor by not wasting their time that could be spent looking for work elsewhere.