Is the Door Cracking Open on Demand for Unemployed Job Candidates?

Recently, I met with a couple of recruiter friends over lunch.  In response to my matter-of-fact pronouncement that most recruiters will not present a slate to a client which contains more than one unemployed candidate, and some not more than zero, they adamantly disagreed.  At least in their recent dealings, they heartily violate that “rule”.  Why?  Some reasons they gave, and some I have observed elsewhere:

• there are a lot of qualified and accomplished execs in the marketplace today.  It’s not like in times of normal unemployment (5%), when it’s rare to find high caliber talent that are mired in an extended job search
• even today, many employed execs have never had to look for a job.  They either have very long tenure with one company, or have seamlessly landed new assignments when recruited away.  So even when a great opportunity is presented, they have not spent the time and energy to recognize it.  “What is their dream job?”  “How much of a raise would be required?”  “What can I compare this new opportunity with?”   Folks that have been unemployed for at least a few weeks, if not many months, have exhaustively thought through those and hundreds of other questions, and know exactly what they are looking for.
• a bird in the hand is worth two in the bush.  How many times have you heard, “Being the newest employee, when the company made it’s latest round of cuts, it was last in, first out.”  The security of a known entity, even with an uncertain future, is preferable to a risky change, to many people.
• unwillingness to relocate.  Even with an openness to relo, a new job would have to offer a fantastic compensation advancement to be worthwhile to many employed folks.   Corporate relo policies have been scaled way back, for all but the highest level positions in many companies.  Ten years ago, companies would buy the house if it did not sell in a reasonable time period.  Today, it’s common to limit relo expenses to a moving company, meager closing costs on both ends, and a modest lump sum for temporary living expenses.  Compared to a salary of $0, this is not such a big problem for the unemployed.
• ease of attraction and transition.  With unemployed candidates, you don’t have to deal with counteroffers from the current employer.  There is less whining about “my kids are in school”, or “how many of my boats will you move”?  There tend to be few second thoughts from people that really need and want the job;  in other words, no buyers remorse.  Although employed people jumping to a new opportunity with a new employer can be very excited about the situation, it usually pales in comparison to unemployed folks, some of whom feel extreme enthusiasm and loyalty once “rescued” by the white knight employer.

If you are a recruiter, have factors like the above changed your recruiting philosophy?  How do you feel about including unemployed people on your slates?

If you are a job seeker, what has been your experience, either working with recruiters, or directly with hiring companies?  Is there more compassion and opportunity given to you than you’ve experienced in normal times?

Maybe we can turn this industry on its head, and get recruiters to favor unemployed people over those already in jobs, when trying to round out a slate of candidates.