I was laid off last year, but contract ended up getting extended until end of Jan 2024. After talking to a few other companies I decided to take 6 months - 1 year off unless something really interesting came along. A few days after that decision, a company reached out that fit into exactly that category and I ended up joining them.

I didn't notice any particular issues with job availability or recruiter outreach, and figured maybe the sentiment about the market is a little exaggerated.