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German unemployment rate edges down to 6.5 per cent in June from 6.6 per cent in previous month

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BERLIN - Germany's unemployment rate edged downward to 6.5 per cent in June but remained steady when adjusted for seasonal factors, according to official figures released Tuesday.

About 31,900 fewer people were without work compared with May, when the unemployment rate was 6.6 per cent, the Federal Labor Office said. Overall, there were 2.83 million jobless people in June.

The modest drop in jobless figures was partly due to milder than usual winter weather. Normally more jobs are lost during the cold months, leading to a sharper fall in unemployment figures in spring.

When adjusted for seasonal factors, the unemployment rate in Europe's biggest economy remained at 6.7 per cent for the fourth straight month.

Analysts noted that the number of people employed in Germany grew partly due to an influx of workers from elsewhere in Europe.

"This will restrain the medium-term downward trend for German unemployment, but it should not reverse it as long as the labour market can create enough new jobs," said Timo Klein, a senior economist at IHS Insight in Frankfurt. "This will remain the case in the foreseeable future."

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