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I agree. "So what do you do?" is just one of those questions you are going to have to get used to answering.
You can say that you're in between jobs or interviewing. Actually, I know a few people who have gotten their jobs through friends or colleagues by saying something like that.
I try not to ask the question because I know so many people who have been unemployed or underemployed in the last few years. It can be awkward.
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