Yes you should write unemployed. Even if she is receiving severance payments she install unemployed. Being unemployed isn't negative it is just the facts.HI All- Quick question- My wife is a co signer on the application but she was unemployed for a period of 8 months from Oct 2017 to July 2018. She was laid off but the company paid for 33 weeks. a Pay slip was generated every pay period with TDS deducted. Should I mention that period as unemployed even though she was getting paid for it?