Spain's unemployment falls nearly 100,000 in June

According to figures published by the Ministry of Employment, the number of people out of work in June fell by 98,853, the best June figures since the current means of calculation was introduced.

This year's figures also compare favorably with June 2011 when unemployment fell by 67,858.

It is the third successive fall and according to government figures 4,615,269 people are now out of work.

As in April and May, June's figures are due mainly to short term jobs created by the tourist sector, which has picked up in Spain following a slow start to the year, although the majority of these jobs will not last long past the end of August or the middle of September at the latest.

Nevertheless, the number of contracts that were signed during June means that affiliation to Spain's social security system has also increased to over 17 million.

June saw unemployment fall in all sectors of the economy except in agriculture, which saw a slight increase. 52,654 of the jobs created were in the service sector, while there were also hopeful signs in construction with the creation of 17,124 positions.

However, June's figures could be merely a breathing space for Spain with unemployment climbing by 493,468, or 11.97 percent, during the last 12 months and with the current recession expected to continue until at least the end of the year.

The government of Mariano Rajoy is expected to soon introduce further rounds of spending cuts, while a predicted increase in sales tax could have a negative effect on private spending and consequently the creation of employment in the second half of 2012.