Unemployment in Spain has had its sharpest fall since 1999 when the euro was adopted.
Official government figures indicate that more than 253,000 people came out of registered unemployment from December 2013 to December 2014.
During December unemployment registrations also fell by 64,405. This was the second largest December decrease on record.
At the same time, the number of people registering as in work went up by 417,000 in 2014, the first annual increase since 2007. Total employment in the country now is 16.8 million.
Despite the welcome improvement, the rate (23.7%) remains the second largest in the eurozone after Greece, with Portugal trailing in third place.
Most of the jobs were found in the services sector, but unemployment rose in construction and manufacturing.
The Spanish economy, the fourth largest in the eurozone, has struggled with years of recession, but began to rally in the second half of 2013. The OECD predicts growth of 1.6% in 2015.
The government has introduced labour reforms to increase economic competitiveness and growth and to boost employment.