US Job Loss Slows Down as Service Sector Improves

A new economic data released by the Federal Reserve Department on Wednesday showed that job losses in the United States has decreased significantly as the service sector, particularly private employers, has grown for the second straight month in October.

The Federal Reserve, which is the Central Bank of the US, said that the new data has given the impression that the economy was finally on its way back up the charts. The data was released after a two-day meeting on Wednesday.

But despite the improvements in the numbers, the department said that it would likely be borrowing funds from other sources as the recovery process will be extended for a longer period of time.The service sector made up about 80 percent of the US economic activity. The growth in October was surprising, however, it was still less than what analysts have earlier predicted.

It was also the fastest climb posted by the sector in more than 22 months. The data showed that job losses in October dropped by 41 percent from 44.3 percent in September.

Economists are now pointing to additional help from the government to continue the economic development without further stalling. It will be recalled that several economic improvements have been acquired through these government programs.