After a collective push to hire more than a million U.S. military veterans in recent years, business is wrestling with a new challenge: holding on to them.

Hiring initiatives by Verizon Communications Inc., Amazon.com Inc., Union Pacific Corp. and hundreds of other companies have helped cut unemployment among younger veterans—in the double digits six years ago—to close to the 4.7% national average, according to the Bureau of Labor Statistics. But many veterans stumble in the transition to civilian careers, landing in jobs…

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