Employment in Germany shrank last year at the fastest pace in a decade as Europe's largest economy suffered its weakest period since a recession in 1993.
According to preliminary data released by the Federal Statistics Office today, employment fell 392,000, or 1 per cent, to around 38.3 million.
It was the biggest annual drop in employment since Germany's last full-year recession in 1993, when employment shrank 513,000, the office said.
Germany's economy contracted in the first two quarters of 2003, and analysts expect it stagnated at best in the year as a whole. Although the economy is growing again, no turnaround on the labour market is expected until mid-2004.
Data due to be released on Thursday is expected to show seasonally adjusted unemployment fell in December, according to a Reuters poll.
However, analysts attribute the decline to government labour market reforms, which are removing long-term unemployed from jobless registers, rather than a pick-up in employment.
Most survey data continue to indicate German companies are shedding jobs domestically, both in manufacturing and services.