Nuremberg, Germany - German unemployment fell for the third consecutive month in October, the country's labour agency said Thursday.

The number out of work in Europe's biggest economy dropped by 118,000 to 3.22 million, the labour office said. Analysts had predicted a drop of between 40,000-60,000.

The jobless rate slid from 8 per cent to 7.7 per cent. A year ago, the unemployment rate was 7.2 per cent.

Federal Labour Agency chief Frank-Juergen Weise said the effects of the economic crisis affected the labour market in October, but the situation had eased in recent months. (dpa)