1. Suspension or demotion. Where, because of economy, consolidation or abolition of functions, curtailment of activities or otherwise, positions in the competitive, noncompetitive or labor class are abolished or reduced in rank or salary grade, suspension or demotion, as the case may be, among incumbents holding the same or similar positions in the same jurisdictional class shall be made in the inverse order of original appointment on a permanent basis in the classified service in the service of