Spain’s January Registered Joblessness Climbs by Most in 3 Years

Registered unemployment in Spain, where almost half of young people are out of work, rose by the most in three years in January as the economy edged into its second recession since the end of 2009.

The number of people registering for unemployment benefits increased by 177,470 to 4.6 million, the Labor Ministry in Madrid said in an e-mailed statement today. That was the most since January 2009, and compares with a median estimate of 127,000 in a Bloomberg News survey of three analysts.

Spain, home to a third of the euro region’s unemployed, fell back into a recession in the last quarter of 2011 and may contract 1.5% this year as the government accelerates spending cuts, the Bank of Spain estimates. The government, elected in November on a pledge to create jobs, plans to overhaul labor rules this month to encourage hiring and reduce the 22.9% unemployment rate.