Do you have to be employed when applying for citizenship?

[Kotiara]

Part 4 of the application form for British Citizenship (good character requirement) has the following questions:
Section 3: Good Character Requirement

In this section you need to give information which will help the Home Secretary to decide whether he can be
satisfied that you are of good character. Checks will be made with the police and possibly other Government
Departments, the Security Service and other agencies.
3.1 What is your occupation?
3.2 Are you An employee? A business partner? Self-employed? A director?
3.3 Name of employer or business
3.4 Address of employer or business
3.5 Address of tax office or tax office reference

Does it mean that I have to be employed at the time of application? I got my ILR based on HSMP? If being employed is not a requirement, does it affect the outcome in any way? How should I answer these questions if I'm unemployed? Should i give contact details of my last employer and make it clear that I don't work there anymore?

[John]

You obviously need to answer the form honestly. As regards whether you need to be employed, no it is not necessary.

[Kotiara]

You obviously need to answer the form honestly. As regards whether you need to be employed, no it is not necessary.

How should I answer 3.3 and 3.4 if i'm unemployed?

3.3 "Currently unemployed"?

3.4 "N/A"?

I haven't found any requirements regarding current employment status either, but could being unemployed negatively affect the outcome of my application even if there is no official requirment?

[John]

Those answers look fine.

Obviously not on your route, but for example on the spouse visa route, some successful applicants for Naturalisation have never had paid work in the UK before they get their Citizenship. For example a housewife (or househusband).