During a recession, people tend to spend less due to the fear of losing their jobs. They save more money and delay buying big items like cars or houses. Anticipating future job insecurity is more impactful on spending habits than actually experiencing job loss. People who live paycheck to paycheck are less likely to cut back on spending during tough times. The study shows that people's spending on big and small items changes in response to the risk of unemployment, with the effects matching real-life data.