Friday, local economist Dr. Don Schunk projected the state jobless rate to rise throughout 2009 and approach 14 or 15 percent by the end of the year.

He also talked about the recession, saying it's not a matter of if, but a matter of when the recession will end.

Once it does, how people respond will determine how we recover. Schunk says every recession has an end, what happens next will be determined by consumers.

"If consumer spending really takes off," said Schunk, "then businesses are going to start taking off in terms of spending and hiring workers. But right now we're seeing U.S. households, right down to the local households, really cut back on spending and making an effort to build up savings and to pay down the debt that we've been accumulating for decades."

If the trend continues, then economic growth will be sluggish. But if people go back to their old spend and consume habits, then economic growth will be accelerated.

Angela Greene says the current recession has permanently changed the way she spends and saves.

"Definitely, because you don't know - five to ten years from now - you don't know how things may still be the same. So it's definitely going to have an impact on me," said Greene.

Linda Kaplan has also changed - "Not on everyday items, but on luxury items, yes," said Kaplan. But she then admitted, "I think it's a temporary change."

When things pick back up, she says she'll go back to habits of years past. Meanwhile, June McWharf says nothing has changed for her and her husband.

"We don't have any children at home so we spend whatever... It hasn't changed our lifestyle, no," said McWharf.

Chris Ireland says saving is the way.

"I think it's a smart habit to get into. We're saving a lot more, especially this day-in-age, you see what's going on and what could happen. It's not a good feeling," said Ireland.

Schunk says as more households put money in the bank, there will be more money in the banking system, making it easier to get loans and for businesses to borrow and invest.

So, will they save or spend? Schunk says that's a tough answer to pinpoint, considering so much depends on how consumers will respond.

"In the short term, we might want people to get out there and spend a lot of money to drive the economy forward, but for the longer term, I think we might be in a better position five years from now if people really make an effort to set aside a little bit more and take care of that debt, before they go out start ramping up that spending again," said Schunk.

Will they continue saving, go back to old habits, and or not change at all? Dr. Schunk says the critical question is which one the masses will do. That will most likely determine the direction of the economy.