Dramatic rise in unemployment

GERMAN unemployment leapt dramatically last month to approach the psychologically important figure of four million, raising fears that the country's economic recovery could be slower than expected.

Seasonally adjusted jobless figures for October, issued yesterday, show a rise of 41,000 on September, three times more than expected.

"The economic upturn has not been strong or stable enough to improve the situation in the job market," said Mr Klaus Leven, vice president of Germany's Employment Office.

Mr Leven insisted the rise in unemployment could be stopped but admitted a high jobless rate would continue for at least another year.

Unemployment throughout Germany now stands at 3.87 million, or 10.6 per cent, more than 1 per cent up on last year.

Unemployment usually rises by half a million during Germany's harsh winter, making it almost inevitable that the four million barrier will be breached during the coming months.

Trade union leaders called on the government and the opposition to stop squabbling over the economy and join forces in the fight against unemployment.