Let's recap part 1. How would you answer the dreaded question: What have you been doing since you became unemployed? Your answer to this question could open or close doors during your job search.
Imagine for a moment that it is you asking the question to someone you might be considering to hire. If this person answers "I've been looking for work," then the conversation may turn to something like, where, how many or what. But if you answer this question by saying, "while I have been following several strong leads, I have also been taking classes, volunteering or mentoring." Do you see the difference? Which candidate sounds more interesting? Which person would you be interested in getting to know better and perhaps inviting in for an interview?

Now, in order to be able to provide an answer like the second person in our story, you need to be doing something along those lines. I am not asking you to lie about how you spend your time. If you are interested in learning a new subject or trends in your area of interest, there are many schools offering free online courses. One I recommend is MIT's Open CourseWare. There are many other colleges and universities offering you the opportunity to expand your horizons and strengthen your knowledge base. Another option is to volunteer or become a mentor.
The main idea is to use the time you have in between jobs to show potential employers--and yourself--that you are a proactive individual who knows how to make the best of a tough situation. All you need is time and motivation. We know you have the time. But do you have the determination and self-discipine to improve your skills on your own?