She called the reform package "major, far-reaching and complete."
"It will mark a before and after in the labor legislation of our country," she said.
Gayle Allard, a labor market specialist at IE Business School, called the package good overall. She said the government was short on language on how its plan to stamp out tax-evasion, and that the labor market is still overcrowded with many different kinds of contracts.
"But the steps they have taken are really good and really needed," Allard said. "They are doing some stuff for the young people. That is good. They are aiming at hiring the unemployed. That is good. And to define a fair dismissal more clearly so that dismissal pay goes down for everybody, that's really good. We needed that."
But not everyone was impressed.
"I expected a more aggressive reform, as the economy minister had said it would be," said IESE Business School Economy Professor Antonio Argandona. He said he could not see how the severance pay change from 45 days to 33 days would attract employers given that temporary contracts were still available.
"Thirty-three days' severance is still very high when compared to the temporary contract," said Argandona, adding that allowing this to continue "was a big mistake."
Experts say more than 90 percent of contracts in Spain these days are temporary.
Argandona said the clause concerning layoffs for economic reasons were too vague and could be overturned by courts.
"In my opinion, they have fallen short and if the markets have the same impression as I do they won't view it very well," said Argandona.
The reform failed to bring about any major change in the yield for Spain's key 10-year bonds on the secondary market with the rate closing at 5.05 percent mid-afternoon, making for a spread of 314 basis points against the German bond, up 10 basis points from Thursday.
The benchmark Ibex 35 stock market index closed down by just over 1 percent.