The end of the summer tourist season saw the number of people registering as unemployed in Spain shoot up by a more than expected 96,000 in September.
The Latest Labour Ministry figures dampened hopes of a fall in the unemployment rate in the third quarter of the year.
There are now 4.23 million Spaniards out of work and the jobless rate there is more than double the European Union average at around 21 percent.
“September’s figures have been negative for a number of years. It’s true this year they’re notably worse than previous years … we hope that by the end of the year there will be a recovery,” the Economy Minister Elena Salgado said.
Spain’s economy has been in recession or stagnant for three years after the property bubble burst. That destroyed the key economic pillar of construction and left tens of thousands of low-skilled labourers seeking work.
Spain’s service industry cut 74,590 posts as hotels and restaurants along the coasts and other tourist hot spots closed up after the 2011 season.
The government’s next quarterly jobs report is due out on 28 October. The quarterly data is considered by many economists to be more reliable. That is because it uses a broad poll of job hunters rather than the labour ministry’s figures which track only those people who are registered as jobless.