German unemployment rises more than expected in September

BERLIN (Reuters) -The number of people out of work rose more than expected in September, labour office figures showed on Tuesday, as the job market struggles to recover in a continually weak economy.

In seasonally adjusted terms, the jobless figure rose by 14,000 to 2.98 million, surpassing the 8,000 increase forecast by analysts polled by Reuters.

The seasonally adjusted jobless rate remained stable at 6.3%, in line with a forecast by analysts in a Reuters poll.

The non-adjusted number of unemployed people in Germany last month passed the 3 million mark for the first time in a decade.

"The labour market continues to lack the necessary impetus for a stronger recovery," said labour office head Andrea Nahles.

Germany, Europe's largest economy, faces a third consecutive year of economic contraction for the first time in its history, made more probable by U.S. President Donald Trump's tariffs.

The economy contracted 0.3% in the second quarter compared with the first three months of the year, pointing to continued weakness in the labour market, which tends to lag other indicators.

Chancellor Friedrich Merz has promised to haul Germany out of the downturn with a sharp increase in infrastructure and defence spending, but those measures are taking longer than expected to translate into better conditions on the ground.

(Reporting by Holger Hansen and Miranda Murray, Editing by Friederike Heine)