July 7, 1979

US Labor Dept repts number of June jobholders increased to 96,754,000, up 440,000 from May; unemployment rate declines to 5.6%, from 5.8%; graph; Carter Adm officials voice optimism; Comr Janet L Norwood repts factory employment down by 100,000, Mar-June, with half of decline in auto industry; fuel shortages blamed; economists urge caution; hold to view that economy may still be entering recession (M)

State Dept officials, noting that Saudi Arabia has delayed paying for 50 US F-5E fighter planes ordered for Egypt, say that projected sale has been postponed; say Carter Adm is proceeding on schedule with plan to sell Egypt 35 F-4 Phantom jets; Phantom is more advanced plane than F-5E; illus (M)

NASA estimates Skylab will re-enter along path that could spread debris across continental US and into Amazon jungle; program director Richard G Smith says agency lacks high degree of confidence as to where breakup will occur; estimates 2/3 of station will be destroyed during re-entry; reiterates that there is little likelihood of injuries from falling debris; illus; map (M)

People's Daily, Peking newspaper, has begun publishing cartoon supplement that seems to be trying to redress balance in favor of ordinary people over bureaucrats; current issue described; recent tour of China by HEW Secretary Joseph Califano and several American journalists noted (S)

NYC Consumer Affairs Comr Bruce C Ratner says gasoline prices appear to have stabilized in city at about $1 a gallon, which represents an increase of 20% or more in last months (S)