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New Yorkers still hold tight to their wallets - Metro US

New Yorkers still hold tight to their wallets

New York continues to lag behind the nation in recovering from the recession.

Last month, consumer confidence nationwide jumped up 5.1 points, but dropped 0.9 points in New York, according to data from Siena Research Institute released Wednesday.

“I’m walking home in the cold because I don’t want to spend the two dollars on the subway,” said student Matt Vosburgh, 21. “You never know when you’ll need that money.”

An unemployment rate of 10 percent that hits 20 percent in some areas of the city and closed storefronts take a psychological toll.

“New York is suffering just as the rest of the country is suffering, but the psychological impact on New York is far greater,” said Joseph Foudy, Assistant Professor of Economics at NYU.

He doesn’t expect much improvement in new unemployment data due out today from the state Dept. of Labor. The city will improve at a slower pace than the country, but he’s optimistic.

“New York will recover,” he said. “It’ll take a solid year of employment before people regain confidence.”

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