According to the Federal Labour Office, the German unemployment rate increased to 8.3% in April, up from both the 8.2% rate expected and the previous month's 8.1% level, reflecting a 58,000 jump in the number of persons actively searching for employment. Economists had expected a more pronounced gain of 65,000.

In seasonally adjusted terms, April's increase brings the total jobless claims up to 3.463 million following March's 71,000 gain. Meanwhile, March's figure was revised up from an initial estimate of +69,000.

Following the jobless figures release, the Labour Office said the number of unemployed could rise as high as four million by the end of the year, and said that it can not rule out jobless numbers reaching five million by 2010.

Earlier in the day, the Federal Statistical Office reported that the jobless rate in Germany for March, as measured by the International Labour Organization, rose to 7.6%, surpassing both the 7.5% figure forecast and March's 7.4% level.

On Wednesday, the German Economics Ministry published its revised growth estimates, and currently forecasts overall economic activity in Germany to contract by 6.0% in 2009, the sharpest decline seen since reunification. Previous forecasts had suggested a more modest decline of 2.25%.

Written by CEP News European Staff, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Stephen Huebl, This email address is being protected from spam bots, you need Javascript enabled to view it

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