Numbers from Gawker:

Total daily newspaper circulation, 2005: 47,374,033
Total daily newspaper circulation, 2001: 55,578,046
Decrease in daily newspaper circ in four years: 15%

Total Sunday newspaper circulation, 2005: 51,073,104
Total Sunday newspaper circulation, 2001: 59,090,364
Decrease in Sunday newspaper circ in four years: 14%

Total number of newspaper jobs, 2005: 54,134
Total number of newspaper jobs, 2001: 56,393
Decrease in newspaper jobs in four years: 5%

Being a newspaper guy this is disheartening, especially considering the interest people have in the news.

Now I'm wondering. Why the decline and what could the papers be doing better?

Personally I think the days of the morning paper are over and many papers would be more effective with both morning papers and evening print updates (Probably just World News and State/Local) to keep up with the daily things happening at the White House and in Iraq.