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Covid shrinks US labor market

The US unemployment rate has eased from March highs, but that doesn't mean the labour market is healthy. Pandemic has dented the labour force participation rate -- people working or seeking jobs --- to atleast five decade low. A smaller labour force leaves fewer workers to contribute to the economy and thereby impacting the growth. Many economists expect once the virus recedes, and jobs recover, workers may return to the labour market. They say the labour force decline is the usual consequence of any recession. Some others disagree saying the losses could be lasting. If