Surprise rise in German jobless

Strong economic growth has seen unemployment fall for 13 months

The German unemployment total unexpectedly rose in May, breaking a run of 13 consecutive monthly falls.

The adjusted jobless total increased to 3.855 million in May, up 3,000 on the previous month.

The unemployment rate was unchanged at 9.2%, according to official figures from the Federal Labour Office.

But economists said the rise in May was probably just a blip and that the jobless total would probably continue falling in the coming months.

"It is not a major problem, just a temporary effect," said Ulrike Kastens at Sal. Oppenheim bank.

Of more concern was the 4,000 fall in the number of vacancies to 601,000 in adjusted terms.

"There is a slight worry in that job vacancies fell again, perhaps a further sign that the employment boom may be losing momentum," said David Brown at Bear Stearns International.

"This is something that the European Central Bank must pay very careful attention to, a reminder that it cannot keep raising rates with impunity," he added.