The number of people unemployed in Germany fell below three million in October for the first time for 16 years, data from the federal labour office show today.
Analysts warned however that a long run of falling unemploymnent figures in Germany, the biggest European economy, was nearing an end.
The German unemployment rate fell to 7.2% from 7.4% in September, with 26,000 fewer people registered as seeking work in the biggest European economy. That was better than the decrease of 15,000 forecast by analysts, but also reflected a traditional jump in the autumn following the end of German summer vacations.
A total of 2,997,000 people were listed on unemployment rolls the agency said, noting that 'the economic slowdown and financial crisis have not yet had serious consequences for the labour market.
Several major German groups, including chemical giant BASF, car parts maker Continental and the industrial conglomerate MAN warned today they would not attain their 2008 growth targets, as orders have fallen sharply.
German car makers in particular have plans to layoff staff as they seek to contain costs during the economic slump.
