German unemployment adjusted for seasonal factors fell 4,000 in May, according to sources at the Federal Labour Office.
The fall, the first month-on-month decrease since February 2002, is in stark contrast to analysts' expectations for a rise of 39,100.
Headline unadjusted unemployment fell to 4.342 million from 4.495 million in April for a rate of 10.4 per cent, down from 10.8 per cent, the source added.