I applied for around 250 jobs last year because I hated the one I was doing and I wasn't being paid enough.
Nobody would even talk to me. I didn't get it. I never applied for a job I wasn't qualified to do, but it was crickets.
I got laid off and forced back into application hell, got hired after like a week or two. Other interest piled in afterward. What the hell?
Just hit me like a ton of bricks. I was employed. And telling everyone I could. Recruiters might want to avoid people who are currently working for someone else, because it necessarily means they will have to compete with wages and benefits.
If they have someone who's unemployed, they're more willing to jump at the first opportunity that presents itself.
I filled out the job application for the place that hired me the same day I was laid off. The same day.
If you're not having any luck, maybe just tell a story about why you're no longer with the company you still work for. Worth a shot?