German unemployment fell significantly more than expected on a seasonally adjusted basis in January.
It was at the lowest level in nearly a year, with the number of people out of work down by 28,000 to 2.927 million.
The German jobless rate held steady at 6.8 percent – again adjusted for seasonal factors.
Economists said mild winter weather was a likely contributor.
Germany’s central bank is forecasting the economy will expand “strongly” in the coming months.
The Ifo index of business confidence recently hit its highest level in two and half years.
Berlin is relying on German domestic demand to continue to prop up economic growth this year as weakness in the global economy weighs on exports.