Spain To Overhaul Employment Services, Extend Jobless Benefits

MADRID -(Dow Jones)- Spanish Prime Minister Jose Luis Rodriguez said Friday that the government is preparing an overhaul of the country's state employment services and will extend unemployment benefits.

"The big challenge we have is to change our situation of unemployment," Zapatero said after the government's weekly cabinet meeting.

Earlier Friday, Spain's National Statistics Institute, or INE, said second- quarter unemployment rose to 20.09% from 20.05% in the first quarter.

-By Jonathan House, Dow Jones Newswires; +34 91 395 8120;

jonathan.house@dowjones.com

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