Options. Select right one according to context of question "So, what do you do?"

1. Brazen it out: "I am an unemployed bum, got any change? haha!"
2. Convert to a networking opportunity: "I am on the market. Know any good gigs for a [your profession here]"
3. Put lipstick on a pig: "I am taking some time off to assess my career direction." Or, "I am not really looking at present."
4. Bullshit it out with well-known code words: "I am a consultant."
5. Lie like a Jesuit: "I am an X" or "I am in X" where X is a profession or field (cleverly failing to mention that you are not actually employed as X" at the moment.
6. Lie outright: "I work at a small company, but can't/would rather not talk about work, how about a drink?"
7. Embellish the truth: "I've got a couple of options brewing. Haven't yet decided what to do."
8. Vague it out: "I've got a few gigs going on. "
9. Deflect: "Let's not talk shop. Did you catch the game last night?"
10. Turn it around: "Nothing interesting on my end, what's going on with YOU? Still tied to a desk?"

I can offer more creative options at $10 a pop. I am a consultant. No really. I've actually got a few gigs going on.