U.S. Unemployment Claims Slip but Hold at High Levels

New applications for unemployment benefits fell sharply last week, suggesting layoffs were easing despite a surge in coronavirus cases across the country.

Initial claims for jobless benefits, a proxy for layoffs, declined to 709,000 last week from 757,000 a week earlier, the Labor Department said Thursday. While weekly claims have fallen from a peak of near 7 million at the end of March, they remain well above levels seen before the coronavirus hit this spring at just above 200,000.

The number of people collecting unemployment benefits through regular state programs,...