It means that when the Household Employment Survey people call and ask you (after finding out you're unemployed), whether you looked for work during this past week, you say no. That's how the statistic is compiled...
In reality, it's just another aspect of duplicitous 'accounting' practices to make our unemployment rate look a lot lower than it really is. The real unemployment rate is up between 9% to 11% or so, I'd guess.