The Spanish Labor Ministry said that unemployment benefit claims had dropped by 94,727 - or 2.25 percent - to 4.12 million.

According to the government, the number of people without work fell across all sectors except for agriculture - and in every region.

But it also admitted that the majority of new jobs were on short-term contracts.

June is traditionally a relatively strong month for the Spanish jobs market, as retailers, restaurants and other service providers bolster their staff for the busy summer tourist season.

DW