German unemployment unexpectedly rose in May to end a run of 13 consecutive monthly falls.
The adjusted jobless total rose by 3,000 on the month to 3.855 million, and the adjusted rate held at 9.2 per cent, the Federal Labour Office said today.
The mid-range forecast of 38 economists polled by Reuters was for the adjusted jobless total to decline by 20,000 on the month and for the jobless rate to dip to 9.1 per cent.
But economists said the rise merely marked a pause in the labour market's recovery and that further falls should ensue.
Other recent reports on the German economy, Europe's largest, have been largely positive. Business sentiment held near a post-reunification high this month, a survey by the Ifo economic institute released last week showed.
The European Central Bank (ECB) is widely expected to raise its benchmark rate a quarter percentage point to 4 per cent next week. But most analysts say rates would have to head even higher for ECB policy to rein in growth and restrict inflation.