* Three-way talks end without agreement
* Government says will take appropriate measures to improve labour market-PM
* To approve jobless benefit extension on Aug 13 (Adds comment from Labour minister announcing the end of talks)
MADRID, July 24 (Reuters) - Three way talks between the Spanish government, trade unions and business representatives to reform the country's labour regulation have ended without agreement, Labour Minister Celestino Corbacho said on Friday.
"The talks are over," Corbacho said, adding that he held business leaders responsible for the failure to reach an agreement.
A revision of the labour market in Spain, which has one of
the most strict laws regarding lay-offs, is all the more urgent
after Friday's data that unemployment reached 17.9 percent in
the second quarter
Corbacho's comments echoed those made earlier on Friday by the Spanish Prime Minister Jose Luis Rodriguez Zapatero, who lauded the stance of the unions and criticized the intransigence of business representatives.
"There has been no willingness to respond to the serious economic crisis...No sacrifices are being demanded of the heads of the CEOE (business groups). I have to voice my disappointment," Zapatero said after the cabinet meeting.
Business groups have called for a 5 percent cut in social security payments companies must make for each employee.
"We will never accept a proposal which casts doubt on the balance of our social security or pensions system," Zapatero said.
The Spanish government has said any reform of the labour market, which is shedding jobs faster than any other euro zone country, must be made through joint agreements with unions and business groups.
Talks have steered clear of the sticky subject of lowering firing costs, which are some of the highest among industrialised countries, and instead concentrated on social security payments and jobless benefit extensions.
The government will approve a new benefit extension payment for people who have used up their benefits and are still out of work on Aug. 13, Zapatero said.
The benefit extension will in principal for six months.
Unions have asked for 420 euros a month for people out of work with no other source of revenue.
(Reporting by Manuel Maria Ruiz; writing by Jonathan Gleave; additional reporting by Martin Roberts; Editing by Ron Askew)