100% true. I was out of work for almost five solid years during the W Bush recession (2001-2006). One job I applied for that looked like it was literally written for me, I did something I never did: the day after emailing my resume, I called the recruiter. She said, and I quote, "Well, you're not fresh."
Infuriated, I asked if she were to take a year off to have a kid, whether she would be no longer employable, because she wasn't fresh. Gee, she'd never thought of that. Supposedly, she put me in, I didn't get it.
Then a friend dug me up online, and I fixed his small private corporate website, and listed myself as employed by him. Within six months, I had a regular job again.
They're ASSHOLES. Rather than figuring it's cheaper to hire out of work, they only want people currently working.