Fox News May 2001

It killed my father, it killed my brother, and both my sisters. Pancreatic cancer killed them all. We don't know how or why they got it, but we knew it, and it was already too late. There still isn't any way to detect it early or to treat it effectively. But we do know the cure: research. Just look how far we've come with other diseases.

It's the 10th Annual MTV 2001 Movie Awards, the show that has brought you nights to remember filled with hysterical spooks, live music, and tons of clips from the flicks you find simply fabulous. Tune in June 7th at 9 Eastern, Pacific 8 Central to see hosts Jimmy Fallon and Kirsten Dunst celebrate glamour, action, and romance. Brought to you by Hyundai, where driving is believing.

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The Leaders, brought to you by the Commonwealth of Virginia. Virginia is for business.

Welcome back. We lost more jobs again last month. The good news is not as many as we thought we would, which has a lot of folks saying we've rounded the bend. Labor Secretary Elaine Chao told me earlier she agrees.

I think it's fair to say that today's numbers are better than most people expect, certainly what the market expected. And the unemployment rate among certain groups such as African Americans and Hispanic Americans have certainly improved. So overall, the numbers seem to have stable— the unemployment number seems to have stabilized for the first time in 8 months. We have not seen a decline. But I hasten to jump to conclusions. Because there are darknesses on the horizon. For example, the manufacturing sector continues to lose jobs. As I've mentioned in the past, our economy is going through a transformation from the manufacturing sector to the service sector, and so the manufacturing sector continues to lose jobs.

The problem is that they lose jobs at a rate we have not seen since the last recession. That's the one problem. Do you think we're going to have a split economy, that factories stink, anything that are not having anything to do with factories do not stink?

What are you doing about it? Well, I talk a lot about the 21st century workforce, and the skills gap is certainly one of the issues that characterizes this new economy. And secondly, it's a shrinking workforce. And thirdly, it's this bifurcated workforce that we're talking about, you and I, that you have just mentioned as well. We're having a summit on June 20th to talk about these issues: the skills gap, the shrinking workforce, the changing complexion of the workforce, and the changing conditions at the workplace. And we're going to start tackling some of these issues. And I'll talk a lot more about how we, as a nation, need to address some of these issues.

One of the things that Treasury Secretary O'Neill has indicated, ma'am, is that maybe the sooner folks get their hands on those rebate checks and those tax cuts, the better things will be. It does not look like that will come until likely the fall, though.

Well, the president had—

What do you think is the case right now?

Well, the president had a major victory in passing his tax reform bill. He's going to sign it next week, and so I think there's a lot of anticipation and excitement about that. The rebate checks should be cut by, I think, this fall. So I do. So Secretary, the Secretary of Treasury is certainly correct in saying that we hope that there will be an added stimulus toward the end of the year.

But do you worry? Do you worry, though, Secretary, that that it actually hurts you though? That that people might be looking forward to that money, and they don't plan to spend diddly until they get that money, compounding the very problems you're trying to address.

I think people have a longer-term point of view, and they understand that once the bill is passed into law, the president signs it, the rebate checks are coming, the expectations will be there. And that's a very important word— expectations. Certainly, if the environment is better, the mood of the economy, the consumer public is better, I think that will be translated into the numbers.

Unemployment numbers may be down, but many companies don't think things are looking up. The solution: putting in the hours and looking good doing it. Perfect Commerce Cisco's CEO Kevin Surace joins us now from Palo Alto to talk about the workplace turnaround. So now apparently we're all nervous and dressing up, huh?

Hi, Neil. How you doing?

I'm fine.

Well, I'll tell you, you know, they may be saying, and the Labor Secretary may be saying, that jobs are moving from manufacturing to the service sector, but it's not moving to technology yet, that's for sure.

So now people are dressing up. Look at you. You got the tie and everything. What's going on? People paranoid or what?

Paranoid? I would say that people have to be a little different feeling than there was 2 years ago. in the Valley or a year and a half ago in the Valley, when in fact everything was looking up. There was just a ton of money. Every company had multi-billion-dollar market caps. That's not the case anymore.

So why did we get dispensed with the Cash Friday thing? Why did that go?

We still have Cash Fridays, but it's not cash every day, that's for sure anymore.

And the bosses are trying to make us feel guilty if we take a weekend off, right?

I think that productivity has to be higher. Look, you know, the bottom line is corporations are not buying software as fast as they were. They're not buying PCs as fast as they were, and that has a dramatic impact on the Valley, dramatic impact on that free-spiriting thing that was happening in Silicon Valley for 4 or 5 years during the Internet craze.

Kevin, the Labor Secretary said we're rounding the bend. Do you buy that?

No.

Why not?

I really don't. I think what we're seeing is continued weakness in manufacturing. When you see weakness in manufacturing, those companies aren't buying technology. They're not buying PCs to replace what they have. They're not buying software to replace what they have. And because they're not buying those, that impacts the Valley. The combination of that and literally $2 or $3 trillion being taken out of market caps in the Valley is significant. I don't think we generally see a recovery for another 6 to 9 months, probably in the spring of 2002.

All right, Kevin, you've thoroughly depressed me, but you look natty doing it, so I appreciate that. Kevin Surace in Palo Alto, California. Coming up in the next half hour, is it just that movies are bad, or is that R rating coming back to bite moviemakers right at the bottom line? We're going to tell you. And controversy at the Tonys. This year's hosts are also up for a couple But with the company scooping up a couple of top honors, isn't that getting just a little too cozy? Maybe not, but we'll ask it after this.

Son, I think it's time we had that little talk.

Okay, Dad.

Well, I know it's kind of awkward, but you're old enough now, and it's time you learned about supply chain management.

See, it's all about businesses sourcing materials and delivering products to market more efficiently.

You follow?

Okay, so not everyone understands supply chain management, but we do.

CNF.

We straighten out supply chains for leading companies worldwide. CNF, where supply meets demand.

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Call now and help build the National World War II Memorial on the Mall in Washington, D.C. Tonight, Tennessee volunteers a new driver's license plan that many aliens are finding totally foreign. What's the controversy all about, and why are some saying the governor should think about making a U-turn on the whole idea? Answers on part 4 of our special series on The Fox Report with Shepard Smith. Then, he served and paid the price. Now Bob Dole thinks it's time to pay tribute to our World War II fallen by raising a new memorial in D.C. And we'll hook up with Arthel on the O'Reilly Factor. It's the most powerful primetime lineup in sight, only on the Fox News Channel.

Fox News Live, I'm Patty Ann Brown.

A teen member of an Idaho family may help end a standoff with deputies. The county