Bank of Spain governor, Miguel Angel Fernandez Ordoñez has said that labor reforms will bring more employment to the people of the country and would help in ending the current economic recession. He said providing employment is the ‘key’ for financial institutions to gain strength and become more capable of providing resources.

Spain has an unemployment rate of 18% and expects to start emerging from recession only by early 2010.

Miguel Angel Fernandez Ordoñez talking to reporters after appearing at the Senate Budget Committee said that compared to other European countries recession has been lesser in Spain but other countries were able to sustain their productivity and wages because of their policy to maintain employment.

He also said that the statements from some of the unions and Ministers for Employment and Development, Celestino Corbacho and José Blanco are encouraging and appear to be in favor of labor reforms.