Yes, include it, and you generally have to explain any gaps in your full time employement history. Given that nearly every school wants you to disclose your job history to month and year (not just year), you will have to explain why you left your jobs.
I myself was laid off a job about a couple years ago, and it took me a little longer than you to find another job. However, during the time I also invested my time to other part time gigs such as tutoring kids and other volunteer work, while applying for jobs and I've now been at my current company for a year. I think schools are going to look at layoffs more about what you do while you're not working full time rather than the fact that you were laid off, given that the economy has been turbulent over the last several years.
Of the three schools I applied to, I got into two and waitlisted at one, but I'm confident that the layoff wasn't why I got waitlisted, I have good reason to believe it's the GMAT... of all things... So I'm going to take it again and hope for the best.
