But the bigger surprise was that manufacturers showed a wider readiness to hire workers after three years of reducing factory payrolls.

The Economy The jobless rate remained at 6.8 percent in August, but factory payrolls rose for the second straight month, countering job shrinkage elsewhere.

If they were fired and removed from the factory payroll, they would lose their housing.

Laura D'Andrea Tyson, the President's chief economic adviser, pointed particularly to a 26,000 rise in factory payrolls, the fourth consecutive rise.

Enraged, the plant director dismissed the party secretary from the factory payroll "for resisting reforms."

In fact, the Labor Department reported earlier that factory payrolls fell by 69,000 in January, bringing manufacturing job losses since January 1989 to 900,000.

Total factory payrolls rose for the second straight month as laid-off auto workers returned to their jobs.

The Labor Department said factory payrolls fell by 33,000 in December following a 200,000 decline in November.

Despite the law, factory payrolls continued to plunge - and because of the law, retail commerce also suffered.

Since April 1998, when factory payrolls peaked, 1.2 million factory jobs have been lost.