Before I was laid off, I'd been working on a side project and had been looking for an excuse to quit my job to commit to it fully. I have quite a lot saved, and now I can survive off severance alone for over a year.
My fear is that should I return to the job market, I'll look like I'm trying to cover up a long period of unemployment on my resume. Employers would see that I only committed to this project after being laid off.
At any rate, it wouldn't be much of a handicap signal.
Could this harm future employability? Maybe. But what’s the alternative, work a job you don’t want to maybe have a better chance of working another job you also don’t want in the future? Personally, that’s not the way I’d like to conduct my life. Opinions differ on this, and that’s OK. Everyone has different priorities.
If you’re happy working on your own project, I think that’s fantastic. To me, that’s more important than optimising for a unknown future.