The Spanish economic recovery is progressing well but the nation needs a job boost for it to continue, according to the International Monetary Fund (IMF).
It called for "urgent" action to be taken by the government and European Union to promote job creation in the country to support its recovery from the recession.
Official data revealed recently that unemployment in the eurozone has reached a new high. Jobless rates in Greece and Spain are now up to 25 per cent.
"Strong reform progress is helping stabilise the economy and external and fiscal imbalances are correcting rapidly. But unemployment remains unacceptably high and the outlook is difficult," the IMF said in its report.
The organisation suggested economic growth could strengthen in Spain towards the end of the year and will pick up to about one per cent in the medium-term.
But it said there is a need for labour reform to be implemented in Spain to create jobs and provide a boost for the economic recovery in the European nation.
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