The new head of Germany's federal labour office has dampened government hopes of a quick economic recovery, saying it is unrealistic to expect the country's 4 million unemployed to find work overnight.

Mr Florian Gerster, appointed after a falsification scandal drove his predecessor from office, faces the mammoth task of restructuring Germany's largest public body and what many regard as Europe's most restrictive employment market. "How long it will take for a turnaround in the unemployment situation is an open question," said Mr Gerster.

His remarks are cold comfort to Chancellor Gerhard Schroeder, who is banking on a second-quarter economic recovery to drag Germany out of recession and drive down unemployment in time for September's election.

Although Mr Gerster is an SPD politician, he has left Berlin in no doubt that he will not take the blame for unemployment figures if the government doesn't pull its weight.

"We will need further sustainable labour market reforms after the election," he said. "The labour market in this country is too rigid and ungainly in comparison to others." Mr Gester, a former minister in the small state of Saarland on the French border, has admitted that his greatest challenge will be in Germany's eastern states.

With unemployment often running at twice the national average, Mr Gester admitted that "it is in these states is where I have most the learn".

Mr Gerster has a two-step plan to reduce the number out of work and to increase efficiency of the federal labour office.

The reforms are desperately needed to reduce the 2 per cent of gross domestic product (GDP) Germany spends compensating the country's 4 million unemployed. At the same time, industry leaders hope that Mr Gerster's reforms will help them fill their 1 million job vacancies.

Mr Gerster's final task is to rebuild confidence in the government agency. Two months ago it emerged that overworked employees were falsifying statistics to appear more successful at placing people than they actually were.