Bloomberg reported that registered unemployment in Spain rose in September to the most in more than a decade, adding to signs the economy may take longer to recover than others in the region.

According to a Bloomberg News survey of five economists, the number of people registering for unemployment benefits increased by 80,367 or 2.2% from August to 3.71 million, the most since at least 1997. Economists had expected an increase in the month of 50,000. From a year earlier, unemployment climbed by 41%.

International Monetary Fund said that Spain's economy shrank for a fifth straight quarter in the three months through June, while Germany and France returned to growth. Once the motor of job creation in the euro region, Spain now accounts for half of the region’s increase in unemployment in the past year and the country’s jobless rate will exceed 20% in 2010.

Mr Jose Luis Martinez strategist for Spain at Citibank Plc in Madrid said that "It's worse than expected and much worse than seasonal factors alone. What we're probably seeing in September, which is going to continue in the coming months, is that projects of the government’s Plan E are coming to an end."

(Sourced from www.bloomberg.net)