Spanish companies have been handed incentives for their employees by reduced working hours.
The government will be giving incentives to part time workers to be kept employed.
These incentives will start straight away costing the Spanish government over Euro 1.
5 billion.
The information given to the press was studied by the Spanish Social Security Department in depth before being realised and should give sufficient financial cover for the unemployed and hopefully create new jobs to slow down the rise of unemployment.
The Government of Spain has introduced new incentive schemes to reduce the unemployment that has reached the highest level in the European Union.
The plan includes reducing existing employees hours rather than paying them off.
The measures include subsidies for companies that hire an unemployed person as well as lowering social security payments for firms that reduce working hours instead of dismissing workers.
Unemployment has increased to over 150,000 in the month of February, bring the total unemployed to over the last six months to over 3.
5 million.
The Spanish property market is one of their highest source of income and with the recent developments of the global financial crisis this has seriously interrupted the Spanish property economy boom.
The government predicts the economy will shrink by 1.
6 percent this year after expanding by 1.
2 percent in 2008, while the unemployment rate will rise to 15.
9 percent this year before gradually starting to fall.
The sharp jump in the Spanish unemployment has pushed the issue to the top of their concerns.
According to polls and recent media reports there is a rising numbers of families that are losing their homes so action needs to be taken as quick as possible.