Spain's jobless rate falls for first time in two years

The rate stood at 26.3% in the second quarter of the year, down from a record 27.2% in the first quarter.

The National Statistics Institute said the total number of unemployed had fallen to just below six million.

But the unemployment rate remains one of the highest in the EU with the Spanish economy still mired in an 18-month recession.

A strong tourist season was credited with boosting employment, with tourism accounting for about 10% of Spanish GDP.

The news will be welcomed by the government of Prime Minister Mariano Rajoy, which has continued to implement austerity reforms but argued the recession will soon be over.

On Tuesday, Spain's central bank estimated that the economy shrank again between the first and second quarter of this year, but by only 0.1%, raising hopes that the economy will begin growing again by the end of the year.

The fall in the unemployment rate came as surprise to some. Economists surveyed by Reuters had forecast another rise.