The number of people out of work in Germany has decreased far quicker than expected in January, as the start of 2012 has proved fruitful for the European country.

According to the latest figures released by the Federal Labor Agency, the number of people who were out of work in Germany in January dropped to 2.85 million, a reduction of 34,000 without jobs.

This figure saw the quickest fall in unemployment figures since March of last year, and saw Germany hit a 20-year record low in terms of unemployment figures.

It can also be seen as a victory, after Germany and France both said last week that employment was the most pressing issue for each of the countries.

Jana Meier, an economist at HSBC Trinkaus in Dusseldorf, told Bloomberg: "The labor market is the main supporting pillar of the economy and the reason why we're relatively optimistic, at least for the second half of the year."

Posted by Alex Donnell