NEW YORK (CNN/Money) - Announced job cuts in June fell to the lowest level in a year, but the rate of hiring also tumbled as employers look for more productivity from their existing workers, a consulting firm said Tuesday.

Announced job cuts fell to 64,343 in June, down 12 percent from May and the lowest level since June 2003 when 73,369 jobs were cut, according to Challenger Gray & Christmas.

Despite the drop in planned layoffs, companies also expect to hire 38,377 workers, down 31 percent from the previous month, the firm reported.

The Challenger figures follow last Friday's June payroll report when the government said that U.S. companies created 112,000 jobs in June, about half the revised amount in May and well below the 250,000 expected by economists.

It's also taking about five months for out-of-work people to find jobs, Challenger said.

"It is far smarter to maximize productivity by paying overtime wages rather than hiring new workers, who will be slow until they become familiar with the new job," said John Challenger, CEO of Challenger Gray & Christmas.

The firm added that the second quarter is one of the slower periods in terms of layoffs and hirings, and activity usually picks up in the fourth quarter.

The presidential elections will be held in November, which is in the fourth quarter.