WASHINGTON, Dec. 30 (Xinhua) -- For Nancy Meredith, last year's layoff was jolting.

    While the shock and dismay have since worn off, Nancy and her family have had to make a number of changes in their daily routine.

    "I definitely don't hang out at the malls anymore," said the North Carolina resident, who spent nearly two decades at the same software company.

    No longer taking impromptu shopping excursions, she has become a habitual coupon clipper, limits meals at restaurants and prefers to cook at home to save money.

    Her new-found frugality reflects the myriad lifestyle changes Americans have made in the worst economic recession since the 1930s. Many are scraping by on part-time work. A number of jobless men are now playing the role of homemaker. Many Americans, known for their uber-consumption, are socking away more cash.

    "I'm saving in case something bad happens, in case I lose my job and I can't find work," said Matt Frank, an IT manager in Washington, D.C.

    Indeed, U.S. savings rates in October hit 4.4 percent, an increase from 0.8 percent in April 2008. That figure was significant, considering savings rates were negative in 2005. And some economists predict a return to pre-90s levels of 7 to 8 percent savings.

    But, while rising savings will cushion many households in the harsh times, it could also put a damper on consumer spending, which accounts for 70 percent of the U.S. economy. And that could have a negative impact, as consumption has in prior recessions lifted the economy out of the doldrums, economists say.

    Although consumer confidence hit a three-month high on Tuesday, Americans are still pessimistic, according to the Conference Board.

    Many report working longer hours and Matt said he had worked harder over the past year. He is an avid martial artist but has sacrificed evenings at the gym to stay longer at the office in this economic climate.

    "I've definitely put in more hours than usual," he said.

    Others are in a similar boat.

    Jeff Smith, a manager at a major company in Conneticut, said there were two sides to the recession -- those without jobs and those who had kept their jobs but now must also do the work of those who had been laid off.

    "I'm in the second category. Despite being told I'm doing a good job and I will get help, I find myself working more hours and getting paid basically the same," he said, adding that there was no indication that anything would change in 2010.

    Besides changes in work and spending habits, the recession has caused cultural shifts. The past year saw unemployment hit men harder than women, with many layoffs occurring in male-dominated industries such as construction and manufacturing. As a result, many men have assumed child care duties and many women have become the family breadwinner.

    For those seeking work in 2010, economists say history bodes ill. Companies tend not to hire until the economy is well into theblack and recent months show only modest improvement.

    Indeed, the unemployment rate continued to climb for 19 months after the 2001 downturn and 15 months after the 1990 recession.

    The economy started growing again in the second half of this year but unemployment, which hovers around 10 percent, would likely rise through 2010, the Congressional Budget Office said.

    That means a long slog ahead for the jobless, as well as continued turmoil for families who must dip into their savings or take part-time jobs at a fraction of their former salaries.

    Nearly half a million individuals are collecting unemployment benefits, which last for 26 weeks in most states but can be extended for an additional 13 weeks, according to the Labor Department.

    Most economists cannot say for certain when the United States will return to long-term growth without lapsing back into economicmalaise. And once it does, it could take several years before unemployment returns to pre-recession levels, they say.

    For Nancy, however, that prospect is not as bad as it sounds.

    While her layoff thrust her into one of the worst job markets in decades - she has failed to land a full-time position despite having filled out more than 100 employment applications - her new lifestyle allows her more flexibility and she enjoys freelancing, she said.

    Nancy counts herself among the "underemployed" - a measure of part-time workers who would prefer full-time work. The underemployment rate stands at around 17 percent, a dramatic jump from nearly 9 percent in December 2007.

    "It's not that bad," she commented on her part-time work writing Web content, despite a three-fourths drop in personal income. Luckily, her husband is still working and she is covered under his insurance plan, though he had to postpone retirement for a year or two so she can continue to receive benefits.

    "In reality, I do like this new lifestyle but I do want to get a couple of other freelance gigs and would like to find more clients," she said, adding that she remains upbeat about 2010.

    "I want to continue working from home," she said, though she added that if she were offered a full-time job that met her criteria, she would pursue it.