SPAIN’S job market will expand significantly this year, according to economy minister Luis de Guindos.
The forecast follows the prime minister’s end of year speech during which he said 2014 would be the year of economic recovery.
De Guindos said: “In 2014, the projections we have at the Economy Ministry point to a net creation of jobs, even above what we forecast when we drew up the state budget.”
Spain emerged from a protracted recession in the third quarter of 2013 when GDP grew 0.1%, but , unemployment remains at 26%.
De Guindos argued that the labor reform introduced in February 2012 would invigorate the job market. The reforms made it cheaper and easier to sack workers but also provide more incentives for companies to take people on part-time.
The government is predicting GDP growth for this year of 0.7%, although some believe that target is modest and that the pace of growth will gradually pick up as the year progresses.