Labour ministry figures showed an extra 128,242 people being out of work, with the total number reaching 4.8m.
This was the third straight month the jobless figures rose after a respite during the summer tourism season.
Monthly jobless data records the number Spaniards registered as out of work, while the unemployment rate, which hit a record high of 25 per cent in the third quarter, is an official survey and considered a more reliable gauge of the jobs market.
“Private-sector employment will continue to be squeezed at an alarming pace with deteriorating domestic demand conditions encouraging firms to extend their labour shake-out,” said Raj Badiani of IHS Global Insight.
Badiani added that the hike in VAT, brought in on 1 September, could squeeze private spending in coming months, further harming the jobs situation.