How should you explain an unemployment gap in your resume?

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Unfortunately and unbelievably my friend has been searching for a job since he graduated from college in December of 2005. In May, he was hired at a company, only to be layed off at his 90 day review along with 6 other people. So my questions are 1. Should he put the one job he was layed off from on his resume at all? He does not want to and is not planning on it. I'm just wondering if that is okay. 2. He read that when an employer sees a gap in a resume they automatically dismiss the resume without even asking for an explanation, presumably because they figure the person is hiding something or was fired. So the gap should be explained in a cover letter. Is that true? Should it be brought up in the cover letter? Should he say he was unemployed for that period of time? All help and ideas welcome. Thanks!!!