US Layoffs Abating, Labor Market Distress Persists

US Layoffs Abating, Labor Market Distress Persists
Construction workers assemble a scaffold at a job site, as phase one of reopening after lockdown begins, during the outbreak of the COVID-19 in New York City on June 8, 2020. Brendan McDermid/File Photo/Reuters
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WASHINGTON—The number of Americans seeking jobless benefits fell last week, but millions laid off because of COVID-19 continue to receive unemployment checks, suggesting the labor market could take years to heal from the pandemic even as hiring resumes.

The weekly jobless claims report from the Labor Department on June 11, the most timely data on the economy’s health, followed on the heels of news last Friday of a surprise 2.5 million increase in nonfarm payrolls in May. It reinforced views that the worst of the labor market turbulence was behind.