The last month of August saw a huge increase in the number of people who applied for unemployment benefits across the country.
According to the Spanish Ministry of Employment and the Labor Ministry, 1,037,000 people applied for the National Employment Insurance scheme (NIES) on August 11, compared to 1,029,000 the same day last year.
The increase was attributed to a sharp drop in the proportion of people applying for unemployment that was covered by the scheme.
The ministry estimates that this has resulted in a decrease of nearly 2.8 million people applying to the scheme from April to August.
The Spanish Ministry also announced the introduction of a new form of unemployment insurance in the country in late July.
The form of the insurance, which replaces a number of existing ones, was announced in a statement by the Ministry of Health and Social Security.
It states that in the last six months, the number and type of unemployment benefits offered by the Spanish Government have increased by over 100%.
The benefits include unemployment, disability, health insurance, retirement and sickness benefits.
The statement also says that since July 2017, the Spanish government has provided benefits to 1.3 million Spanish citizens.
Spain has been facing a long-running economic crisis and is struggling to find new sources of revenue to finance its social services.
In the past year, the economy has grown by 4.2 percent compared to the same period last year and the unemployment rate has increased from 5.4 percent to 6.5 percent.