FXstreet.com (Barcelona) - German labour marked is starting to give signals of weakness as a consequence of the global economic slowdown, in January, the unemployment rate, as well as the volume of workers laid-off have both increased above expectations, according to data by the German Labour Office.

Unemployment rate has ticked up to 7.8% in January in seasonally adjusted figures, from 7.7% in December, revised up from the 7.6 previously estimated.

The total volume of jobless in January has increased to 56,000 seasonally adjusted, well above the 18,000 in December, and also above the 33,000 increase forecasted by market analysts.

The labour office affirms that the increase on unemployment seen in Germany in January has been the largest in the past two years, and that this is the effect the slump financial markets is having upon the labour market.