The Spanish prime minister has insisted that the country's economic and labor market recovery is "not far away".

Jose Luis Rodriguez Zapatero defended Spain's solvency and reiterated the government's aims to cut the economy's deficit by half without reducing the social benefits considered a hallmark of his administration.

Speaking to parliament, the Socialist leader drew criticisms for failing to map out a clear plan to reduce Spain's unemployment rate of 19 per cent, which is the highest recorded in any European Union country.

Gayle Allard, Spanish labor market expert at Madrid-based IE University, explained that the government must urgently reduce the number of unemployed from the current figure of 4.3 million.

He told the New York Times: "They really haven't offered anything. They do not have a strategy, and they do not have a response."

Earlier this month, Maravillas Rojo, Spain's employment secretary, insisted that the government will be unveiling new proposals to solve the country's labor market crisis.