BERLIN, June 5 - German unemployment adjusted for seasonal factors registered its first monthly decline for 15 months in May, surprising analysts who had predicted a hefty increase. A source with knowledge of data due to be released later by the Federal Labour Office said unemployment adjusted for seasonal factors fell by 4,000 to 4.453 million. April's total was revised down to 4.457 million from 4.460 million, he said. The source said the decline was due to the success of labour market policy measures rather than reflecting any improvement in Germany's economy, which is teetering on the brink of its second recession in two years.
Analysts, who had in a poll on average predicted an increase of 39,100, said the labour market was likely to remain stagnant for some time to come. "This one month fall is not enough to indicate a trend change. But I think seasonally adjusted unemployment peaked in January and February in terms of monthly increases," said economist Lothar Hessler of Trinkaus & Burkhardt. Headline unadjusted unemployment fell 153,000 to 4.342 million from 4.495 million in April for a rate of 10.4 percent, down from 10.8 percent, the source added.//