Companies in the US cut more jobs than forecast in June, showing the labor market will be slow to improve even as other parts of the economy indicate the recession is abating.

The 473,000 drop in the ADP Employer Services gauge followed a revised reduction of 485,000 workers in May that was smaller than previously estimated. Job cut announcements in June fell 9 percent to 74,393, the fewest in more than a year, from 81,755 in June 2008, Chicago-based placement firm Challenger, Gray & Christmas, also reported. It was the first year-over-year decrease since February 2008.