May Day! May Day!

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EVEN AS SEARS SLASHED ITS PAYROLL, THE RELENTless pace of layoffs and cutbacks sent America's commercial aviation companies into a tailspin. Faced with plunging airline orders, industry leader Boeing announced that it would cut production of its entire line of aircraft models, which analysts said could eliminate as many as 30,000 of the company's 130,000 jobs. At the same time, struggling McDonnell Douglas said it would slash 8,700 positions from the firm's commercial aircraft division, or 10% of the work force. And Pratt & Whitney, the jet-engine subsidiary of United Technologies, plans to pare 7,000 of its 30,000 jobs.

These latest cutbacks underline Clinton's challenge as he prepares to revive the economy. While GDP grew 3.8% in the fourth quarter and orders for durable goods rose more than 9% in December, continued job woes could choke off recovery. Speaking last Tuesday, Labor Secretary Robert Reich said the Administration now favors spending about $20 billion this year to keep the | recovery rolling. And to assist the growing army of laid-off workers, the Administration may seek to extend the period for collecting unemployment benefits, which now run out after 59 weeks.