German unemployment fell more than expected in May as a pickup in growth in Europe's biggest economy lead to a solid gain in hiring.

    The monthly number of people out of work in seasonally adjusted terms fell by 11,000 to 2.695 million in May, the Federal Labour Agency said on Tuesday. Analysts had forecast a 5,000 fall.

    At 6.1 per cent, the jobless rate now stands at its lowest rate since German reunification in October 1990, German News Agency (DPA) reported. "Altogether the labour market continues to develop positively," said labour agency chief Frank-Juergen Weise."Employment has grown rapidly and the demand for labour has increased significantly," he said. 

    Seasonally unadjusted unemployment also fell, dropping by 80,000 during May to 2.664 million, the labour agency said, with the jobless rate declining to 6 per cent compared with 6.3 per cent in April