Spain's government Friday said it has approved a series of measures to make it easier for companies to hire workers on cheaper temporary contracts, the latest step to boost employment in an economy that has the highest jobless rate in the developed world.
The steps, which in particular seek to lower youth unemployment, include a controversial measure to allow companies to keep workers on temporary contracts on an indefinite basis, up to 2013. This removes limits on so-called "trash contracts" that were imposed in 2006.
In addition, the government said the measures will also open up special apprentice contracts to a larger number of workers, by changing and removing several limitations now in place.
Around 46% of job-seekers below the age of 25 in Spain are currently unemployed--more than twice the around 21% overall rate in the country.
"We have a national priority, which is to create jobs and fight unemployment," chief government spokesman Jose Blanco said in a press conference.
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