Frank-Juergen Weise said the September upturn was strong

The Federal Labour Agency said the unemployment total fell by 50,000 to 3.694 million in September.

The fall was larger than expected and analysts said it should eventually help to lift consumer spending.

Stronger exports fuelled by growing overseas demand for German products underpinned the growth in employment.

The figures give further credence to the view that Germany has put two years of stagnant growth and double-digit unemployment rates behind it.

During 2005 the German unemployment total rose above 5 million.

Alexander Koch, an economist at Unicredit bank, commented that the latest figures "underscore that the upswing in the labour market is intact".