The German government has blamed the latest figures on seasonal factors, such as the cold winter, but admits that unemployment has reached an unacceptably high level. The Federal Labour Office said that economic growth was not yet strong enough to boost the jobs market, while experts are predicting further rises this year in the number of people on the dole.

Figures show that since 1991 some 2.5 million jobs have been cut in Germany as companies respond to increasing global competition. Chancellor Kohl's government was sharply criticised this week by one of its own economic advisors, Herbert Hax.

He said it had missed several opportunities to push through vital tax and pension reforms which could have encouraged job creation. German labour costs are among the highest in the world, with many companies preferring to site new factories abroad.

Mr Hax also warned trade unions against pressing for large wage rises, saying that both the unions and employers were clinging to vested interests which prevented Germany modernising the economy and creating a more flexible jobs market. Such issues are likely to be at the heart of this year's election campaign in which the opposition will try to oust Chancellor Kohl after almost 16 years in office.