NEW YORK - US private sector job cuts fell in June to their lowest in eight months, but they still came in more than expected and the economy may be on track to lose another one million workers by year-end.

Private employers cut 473,000 jobs in June, down from 485,000 in May, according to a report by ADP Employer Services published on Wednesday. Economists surveyed by Reuters had expected 393,000 private-sector job cuts in June.

Though June's loss was the smallest ADP had reported since October 2008, the surprisingly large number of cuts dealt a setback to those expecting the US economy to recover soon.

'The data surprises me a little bit in that the consensus out there seems to be that business is improving and that the economy has hit bottom,' said Mark Bonhard, investment advisor at Dawson Wealth Management in Cleveland, Ohio.

'This definitely is not good news.'

The May figure was revised from an originally reported loss of 532,000 jobs. -- REUTERS