Spain's conservative government passes labor market reforms

Spain's new conservative government has passed labor market reforms deemed crucial to creating jobs to chip away at Europe's worst unemployment nightmare and restore confidence in a sick economy.

Deputy Prime Minister Soraya Saenz de Santamaria said Friday that the changes are aimed at encouraging companies to hire young people, the long-term unemployed and people with dependents.

She said the package stresses, among other things, open-ended contracts and tries to limit temporary ones that are very common in Spain and make the country's workforce vulnerable to swings in economic growth.

Saenz de Santamaria said the reforms will "mark a before and after" in Spanish labor law. Passage came after a Cabinet meeting.