Iran's unemployment rate has reached 12.5 percent during the past winter months, showing a 0.6 rise compared to the previous year.

"The unemployment rate released by Iran's Statistics Center stands at 12.5 percent for winter," Labor Minister Mohammad Jahromi announced on Wednesday.

According to the center, the number of people out of work has also grown by 0.3 percent compared to the three months of fall.

Up to 750,000 people enter the labor market each year in Iran, where more than two-thirds of a population of 70 million is under 30.

For years now, Iran has been faced with the challenge of reducing its relatively high unemployment rate, which started growing as the generation of baby boomers entered the workforce at the end of the 1980s war with Iraq's former regime.

At times, the objective did not seem so out of reach for incumbent President Mahmoud Ahmadinejad, who according to his administration managed to lower the rate to under 10 percent at one point in 2008.

Ahmadinejad's economic polices reportedly reduced unemployment figures to 9.6 percent in the spring of 2008, achieving the single digit that has been the target for much of the past decade.

The president's policies, however, have drawn criticism for their inflationary side effects.

Furthermore the recent increase in the demand for jobs may prove to be a setback for Ahmadinejad and his administration, as it will put them under increasing scrutiny before the country's June 12 presidential elections.

MJ/JG/MMN