A record 4.75 million people are now officially out of work in Spain.
The labour ministry says the number of people filing for unemployment benefits rose for the eighth consecutive month in March.
According to the European Union, Spain's overall jobless rate in February was 23.6% with youth unemployment running at 50%.
Spain has the highest unemployment rate in the European Union and it is expected to rise further this year.
The government's latest budget includes spending cuts and tax increases worth 27 billion euros ($US36 billion).