German unemployment fell by a slightly less than expected 17,000 in seasonally adjusted terms in September, according to Germany's Federal Labour Office.
The seasonally adjusted unemployment rate held at 10.6 per cent, unchanged from August. In unadjusted terms, the jobless total fell 134,000 to 4.238 million.
The jobless fall follows a batch of other, largely positive, reports on Europe's largest economy this week.
The Ifo institute's business climate index showed on Tuesday that corporate sentiment remained strong in September, and another survey showed Germans' willingness to buy rose in September to its highest level since reunification in 1990.
Germany 's economy grew by 0.9 per cent in the second quarter, its best performance in more than five years, and many economists are forecasting growth of 2 per cent or more this year.
However, a government plan to raise value added tax by three percentage points to 19 per cent from January 1st, 2007, is widely expected to hit private consumption, and growth next year.