You might wonder why the interviewer would ask such a question during the interview. This type of question is not commonly asked during job interviews. One reason they would ask it is to know if you have been making yourself productive even while on the job hunt. People who are keeping themselves busy most of the time only means that they know how to value time and know how not to waste it over nothing.
Be smart enough in answering this question. It does not really mean that while you are still actively search for a job, you are not being productive. The question is on a generalized approach which means that it does not specify in what area you are being productive. You can be busy with many other things.
Your best answer to this should be a confident Yes and then reason out before mentioning the things that keep you working hard. Employers definitely want individuals who keep themselves busy because it means that these people have a good level of hard work and motivation to do things. Instead of procrastinating, there is always something else to do and with an output, you can feel accomplished even for a day.
When stating your reason, the key idea is to place value on time. Reason out that you want to make yourself and your time productive. State why you see being productive as important and why you believe it increases your level of hard work. You can also say that you value small accomplishments in your life so when you strive to keep yourself busy, you are actually completing tasks for a day. You can simply consider these completions as accomplishments.
Reasoning is best supported with concrete examples. Mention your regular activities such as sports, club meetings, gatherings, or even personal errands. This should give them an idea that you are not a couch potato who just waits for something to come up or even when there is something to do, does not attend to that task.
Avoid mentioning that you are busy most of the time lately trying to search for a job. Your day should not only revolve on that. Give them the impression that you value time so much and so you always find ways to allocate time for other important things to attend to.
The goal of most interviewers for this question is for them to know if you
will be productive in their company, should you get hired. If you project this
busy-bee personality, they will associate it with you being busy at work, too.
On the other hand, if you mention that you are not doing anything at the moment
since you are unemployed, then this would send warning signals to their mind and
tell them that you would only be a liability to their company.