Official figures show that the jobless rate in Germany dropped unexpectedly to 8.5% in March.
The Federal Labour Agency said there were 3.57 million people without jobs, a drop of 75,000 from the previous month. In February, the unemployment rate had been 8.7%.
'The spring revival has reached the labour market,' said the head of the labour agency, Frank-Juergen Weise.
Analysts had expected the number of unemployed, when adjusted for seasonal factors, to climb by 10,000 this month, but that figure dropped by 31,000.
Germany has managed to limit the increase in unemployment despite suffering its worst post-war recession last year, with state subsidies that allowed for shorter working hours at a little below normal pay levels.
Despite the positive figures, most economists expect the jobless figures to rise in Germany as companies adjust their workforces after the economic crisis.
In a regular report on the German economy published Tuesday, the International Monetary Fund said it expected an average jobless rate of 8.6% this year, rising to 9.3% in 2011.
