German unemployment has risen for the third month in succession in a further setback to Berlin's hopes of an economic recovery.

The number of Germans without work rose by 23,000 to 4.367 million in April, according to seasonally adjusted figures, pushing the jobless rate up to 10.5 per cent.

"Economic growth is too weak to boost the labour market," said labour office chief Mr Frank-Jürgen Weise. "This shows that the conditions are not in place for companies to create new positions."

The unadjusted employment rate, more closely watched in Germany, fell slightly to 10.7 per cent from 10.9 per cent in March.

The German economy faces a struggle to recover this year, according to recent economic reports. The so-called economic wise men predicted the jobless rate would fall to 10.2 per cent this year.

They downgraded their economic growth to 1.3 per cent last week, while the government has reduced its growth forecast to 1.5 per cent.

Berlin has been counting on stronger economic growth and an upswing in consumer spending in its budget calculations after three years of economic growth. But continued high unemployment has made Germans reluctant to splash out on big consumer items, with many opting instead to save.