WASHINGTON - OUT-OF-WORK with no place to land, the legions of America's unemployed are growing.

The rising rate comes as recession-weary companies continue to cut workers. Economists expect a loss of 363,000 jobs in June, up from 345,000 job cuts in May. Economists believe a chunk of those cuts will be tied to shutdowns at General Motors Corp and fallout from the troubled auto industry.

Still, if economists' forecasts are correct, it would be consistent with the belief that the worst of employers' payrolls cuts have occurred. Companies are expected to keep shedding jobs through the rest of this year, but economists hope the pace will continue to taper off.

'Employers were very quick to pull the trigger on job cuts last year, and most of the biggest cuts are behind us. But companies are going to be very cautious about hiring,' said economist Ken Mayland, president of ClearView Economics.

The deepest job cuts of the recession came in January, when 741,000 jobs vanished, the most in any month since 1949.

Another report from the department due Thursday is expected to show the number of newly laid-off people filing applications for unemployment benefits dropped last week to 615,000, from 627,000 in the previous week. The number of people continuing to draw benefits is expected to nudge up to 6.740 million from 6.738 million.

Even if companies slow the pace of layoffs, they will be reluctant to hire until they feel certain the economy is back on its feet. That's why economists are forecasting a continued rise in the unemployment rate over the next year. It's expected to hit 10 per cent this year.

Many think it could rise as high as 10.7 per cent by the second quarter of next year before it starts to make a slow descent. Some think the rate will top out at 11 per cent. Others think the peak will lower - around 10.5 per cent - by the spring of 2010.

The post-World War II high was 10.8 per cent at the end of 1982, when the country had suffered through a severe recession. -- AP