U.S. private employers cut 473,000 jobs in June, more than expected but down from the 485,000 jobs lost in May, a report by a private employment service said on Wednesday. Though June’s job loss was the smallest since October 2008, the surprisingly large number of cuts deals a setback to those expecting the U.S. economy to recover soon.

After the report, U.S. stock index futures pared their gains. U.S. Treasury debt prices initially recovered some ground but were then hit by renewed selling. The U.S. dollar pared its losses versus the euro.

The May figure was revised from an originally reported loss of 532,000 jobs to 485,000 jobs.

The ADP data comes ahead of Thursday’s monthly non farm payrolls report from the government, which is much more comprehensive and includes both the public and private sectors.

Economists expect the payrolls report, which will be issued a day early due to the Independence Day holiday on Friday, to show a loss of 363,000 jobs in June and a rise in the unemployment rate to 9.6 percent from May’s 9.4 percent.

ADP follows another privately released report showing planned layoffs at U.S. firms fell for a fifth consecutive month in June, hitting the lowest since March 2008 and providing a hopeful sign as the U.S. economy struggles to end its worst recession in decades.