aap
Do you think it would matter to bschools if your recommender is unemployed temporarily? In that case, what should I fill in the fields where it prompts for his 'Employer' and 'Title'? in the page where I have to fill these fields to be able to add him as my recommender? Can/should I say 'Unemployed' for both or should I use his last employer and title?
I don't think it would matter whether your recommender is currently employed or unemployed. Because we live in such a difficult job market, it's very common and understandable.
The purpose of recommender form is to have alternative ways of analyzing your bschool candidacy in the eyes of people that worked with you in the past.
For the title and employer part, I would check with the school admissions office but I think it's okay if you put in his or her last employer or job title (especially if it is relevant to the time you worked for him or her)