Unemployment in Germany rose unexpectedly in April suggesting that the economy may have lost momentum after the euro area debt crisis intensified with Spain assuming the center stage amid renewed tensions in the region. The Federal Labor Agency said Wednesday that the number of unemployed persons in the country rose by 19,000 from a month earlier to 2.875 million in April, after adjusting for seasonal variations. This was in contrast to economists' expectations for a decrease of 10,000. The number persons without work in March was 13,000 less than a month earlier. The unemployment rate, meanwhile, remained stable at 6.8 percent in April. The March figure was revised up from 6.7 percent reported earlier and the expectations were for the rate to remain unchanged from the initial estimate. On the other hand, the number of unemployed persons fell by 64,000 from a month earlier on an unadjusted basis. "The labour market has entered a period of stabilisation at high level," Carsten Brzeski, senior economist at ING Bank NV, said. "With high employment, the labour market should remain an important growth driver in the first half of the year." Meanwhile, the Federal Statistical Office said earlier on Wednesday that the number of unemployed fell 15.4 percent to 2.31 million in March. Compared to February, the number of persons out of work declined 7.2 percent. The seasonally adjusted unemployment rate was unchanged at 5.6 percent in March. However, it was 0.6 percentage points lower than a year earlier. The most recent Manpower Employment Outlook Survey revealed that German employers' hiring plans for the second quarter remained cautiously optimistic. Despite the euro crisis, the number of employers intending to recruit staff in the coming quarter continued to rise, it said. Market research group GfK said last week that German consumer morale is set to deteriorate in May as high fuel prices damped their income expectations and willingness to buy durables. Nonetheless, positive job market developments is expected to continue to support overall stabilization of consumer climate. The German government forecasts the economy to grow 0.7 percent this year and 1.6 percent in 2013. The economy contracted 0.2 percent in the fourth quarter. Bundesbank said in April that the economy lacks momentum, though the improvement in the labor market and increase in wages are supporting investment by households in the construction sector.