Spain is hoping for a slow down in the rapid deterioration of the country's labour market, as the economy has contracted in the current recession. Spanish jobless claims have shrunk for a second consecutive month, although Spain's labour ministry reported that June jobless claims still fell by 1.5%.

The improvement from the previous month is largely the result of temporary job creation at the beginning of Spain's summer tourism season. The government's EUR8 billion infrastructure plan is another reason for the slight improvement. Spain's prime minister Jose Luis Rodriguez Zapatero has taken into account the new figures and has forecast second quarter economic activity will be better than the first.

Spain's economy has the euro exchange rate at GBP1.1662 and USD0.7125.

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