German unemployment has risen for the first time in 33 months with the total number of jobless now above three million, data shows today as the recession in Europe's economic powerhouse begins to bite.
Adding further pressure on Chancellor Angela Merkel's government to counter what is forecast to be Germany's deepest post-war slump, the labour office said the number of jobless had risen in December by 114,000 to 3.1 million.
The unemployment rate now stands at 7.4%, a rise of 0.3 percentage points.
Economists said up to 10% of the workforce could be without a job by the time Merkel stands for a second term in elections on September 27.
Even adjusted for seasonal fluctuations, unemployment in Europe's biggest economy rose by 18,000 from the level in November - the first such increase since February 2006.
'2008 was the best year for the jobs market. Nevertheless, the December data show that the economic crisis has reached the jobs market,' the head of the labour office Frank Weise said. 'As a result, our optimism for 2009 has also been dampened,' he added.
In recent months, the German jobs market has shown surprising resilience in the face of the economic crisis but officials and analysts warned that the trend had now definitely turned.
Germany, the world's biggest exporter, is already mired in an economic recession and experts believe the situation is set to deteriorate sharply before it gets better.
