Unemployment in Germany fell to its lowest level in five years in October, according to figures released by the Federal Labour office yesterday.

Some 3.61 million people were registered as unemployed in October, a drop of 1 per cent on the same time last year, leaving the jobless rate at 8.9 per cent. The most dramatic drop in the unemployment rate was in western states, however, with 23,000 fewer unemployed in October, whereas unemployment blackspots in the eastern states registered a drop of just 3,000.

When seasonally adjusted, the overall number of those out of work was down 25,000 from the previous month, slightly better than analysts had expected. "Following the ongoing economic upswing, the positive trend on the German job market continued," said Mr Bernhard Jagoda, head of the Federal Labour office yesterday. The latest figures continue the downward trend in the German unemployment rate, down from 9 per cent in September.