Although the unemployment rate in Spain rose during March this year, the rate at which it is increasing slowed.

This is according to official figures from the Labor Ministry, which showed a 0.87 per cent gain in the jobless total last month, below growth of two per cent recorded in February.

Unemployment in the European Union nation now stands at 4.16 million, as the country starts to recover from the economic downturn.

The services sector felt the impact of rising unemployment most acutely in March, with economists suggesting to Reuters that it will continue to grow into 2011, while the government welcomed the slowdown.

Head of the employment department at the Labor Ministry Maravillas Rojo commented: "While there was an increase in the past month the data confirms that the rise in unemployment is slowing."

Reuters recently reported the Spanish government has put together a package of measures aiming to boost the economy and create jobs, which have been sent to other political parties for their support.