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From the INS website:
The general requirements for administrative naturalization include:
a period of continuous residence and physical presence in the United States;
residence in a particular INS District prior to filing; an ability to read, write and speak English;
a knowledge and understanding of U.S. history and government; good moral character;
attachment to the principles of the U.S. Constitution; and, favorable disposition toward the United States.
All naturalization applicants must demonstrate good moral character, attachment, and favorable disposition. The other naturalization requirements may be modified or waived for certain applicants, such as spouses of U.S. citizens. Applicants should review the following materials and carefully read the N-400 application instructions before applying.
there is no mention of continous employment