German jobless rate drops again

Conditions continue to encourage firms to hire more staff

German unemployment has fallen further as firms hired more workers amid improving economic prospects.

Government figures showed the jobless rate - unadjusted for seasonal factors - had fallen to 9.8% in March, from 10.1% in the previous month.

Adjusting for winter layoffs in industries such as construction, the jobless rate fell to 9.2%, its lowest level for nearly six years.

Europe's largest economy saw 869,000 fewer jobless people in the past year.

'Economic rebound'

German and foreign firms increased investment while construction orders surged following the country's mildest winter on record, pushing firms to expand their workforces.

Meanwhile, booming export growth and stronger consumer demand also encouraged companies to continue hiring.

Analysts saw the figures as encouraging for the country's future prospects.

"The decline in joblessness, the seventh drop in a row, adds to evidence that Germany's economic rebound will continue this year," said market research group GfK.

But analysts warned that the robust German economy needs to distance itself from feared US economic troubles.

"We basically have very stable economic growth. Now it depends on whether Germany can distance itself from a weak US economy," said DZ bank Glenn Marci.