My ingoing view on this is that if you don't address it head on, Adcoms will assume the worst (i.e. you basically did nothing during the time you were unemployed). It's not enough to just say "I was laid off" in an essay somewhere. You've got to talk about what you did during that time. A blank spot is a bigger red flag than owning up to it.
It sucks to get laid off, I know. It didn't happen to me, but it did happen to my dad during the dot-com bust (several times) and it was miserable. But think deeply - what did you do during your unemployment? Yes, interviewing/negotiating with employers takes up a significant part of it, but surely you didn't spend every waking hour applying to jobs. What did you do in your time outside of that? Nothing? You must have done something to occupy your time.
As an example, if i got laid off, I'd probably have more time to work out, and would encourage my friends to work out, too. I could easily spin that into something like "During my unemployment, I helped organize a casual recreational sports/physical fitness group that ended up reaching x members by the time I was employed again." I dunno, you had to have done something in your free time. It's just a matter of really pulling that story out.