Spain takes part-time approach to recovery

The Spanish government has approved a series of measures it hopes will help ease unemployment problem and reduce market tensions over the country's economic and financial future.

The reforms include a one-year plan to try to reduce joblessness among young people - now around 40 per cent - by offering companies cuts in social security payments for anyone under 30 they take on part-time.

"It aims to encourage part-time work," labour minister Valeriano Gomez said. "We believe this is one area in which we have an important shortfall."

Mr Gomez said the government would be setting up retraining programmes directed at those over 45 who had been employed in construction and other sectors battered by the economic crisis. The government also approved a monthly subsidy of €400 (340) for unemployed people whose benefits have run out and who attend job relocation training courses.

The scheme, set to benefit 192,000 people, will run for six months, costing €400 million.