Joblessness fell in Germany last month as Europe's largest economy continued its labor market recovery.

The country's Federal Labor Agency disclosed that the number of unemployed workers fell by 3,000 to 3.42 million in December, which is the sixth consecutive month that this figure has declined, Bloomberg reported.

However, despite this fall, Germany's unemployment rate remained at 8.1 per cent, which is well below the European Union average of 9.8 per cent.

Juergen Michels, economist at the global financial conglomerate Citigroup, identified the industry sector that is assisting the country's employment outlook.

He told the news agency: "The recovery in orders in some parts of the manufacturing industry is having an effect on the labor market."

In addition, Mr Michels explained that the government's stimulus packages "may also have helped."

Last month, Germany's chancellor Angela Merkel warned that 2010 will be a tough year for the country's economy.