I agree that it's time for him to either get a job and pay rent or move on. I also agree that telling your bil this has to be done by your husband. It's his brother and his family. If you were to do this you would likely be the focus of everyone's attention instead of your bil and his responsibilities.
You and your husband decide how you want to handle this. I would focus on his lack of a job and lack of efforts to get a job. I would not bring up the details of how he's costing you money. Tho, true, that adds another layer to the issue which is really his lack of job and efforts to get one. I suggest it's reasonable to say that you can't afford to continue supporting him.
I would give him a deadline at which time, if he's not paying rent, that he must leave. Perhaps give him a month.
I had a similar situation with my granddaughter's father, my daughter's boy friend. I told him he had to give me a list, weekly, of the jobs for which he'd applied. When he hadn't given me a list in two weeks, I told him he had to leave and I purchased a ticket for him to go back to his parent's home.