WASHINGTON -- Unemployment lines, painfully long this July Fourth, are only going to get longer.

The nation lost jobs for a sixth month in a row in June. About 62,000 Americans got pink slips.

Weighed down by energy prices and the housing crisis, employers laid off workers in stores, factories and forsaken building sites.

With more job cuts expected in coming months, there's growing concern that many people will pull back on their spending when the bracing effect of the tax rebates fades, dealing a setback to the economy. These worries are rekindling recession fears.

"The deteriorating jobs climate will dampen many a barbecue this weekend. It's hard to celebrate when you are out of a job," said Richard Yamarone, economist at Argus Research.

June's cuts bring total losses so far this year close to a half-million -- 438,000, according to the Labor Department's report released yesterday. The economy needs to generate more than 100,000 jobs a month for employment to remain stable.

The jobless rate held steady at 5.5 percent after jumping in May by the most in two decades. Still, June's jobless rate was considerably higher than the 4.6 percent of a year ago. And it is expected to climb through the rest of this year and top 6 percent early next year.

"The economy will get worse before it gets better," said Sung Won Sohn, an economics professor at California State University.

When companies do have openings, job hunters are in for more competition.

"I get résumés upon résumés upon résumés when I put up job postings," said Jeff Posner, president and owner of e-ventsreg.com, a small New Jersey firm that handles registration and check-ins for trade shows.

There were 8.5 million unemployed people as of June, up from 7 million a year earlier.

Heavy job losses were reported in construction, manufacturing and financial services -- the worst casualties of the housing, credit and financial debacles. Cutbacks also came in retailing, temporary help, trucking, publishing and elsewhere. That more than swamped job gains in other places, including health care, education, hotels, bars and restaurants and the government.

Average hourly earnings grew by just 3.4 percent in the past 12 months, the smallest annual increase since January 2006. Paychecks aren't stretching as far because prices for gasoline, groceries and other things are rising more quickly.

Other economic news revealed more weak spots.