Spanish jobless claims increased 3.5% month-on-month in March as deepening slowdown forced firms to reduce headcounts, the Labor Ministry said.

The official report showed that 123,543 people filed jobless claims in March taking the total number of unemployed to 3.6 million.

Registered unemployment in the service sector rose 57,891 in March, representing a month-on-month increase of 2.8%.

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