Germany's unemployment rate has risen for the first time in seven months in January, according to government data.

The Federal Labor Office disclosed that the national jobless rate in the European country reached 8.6 per cent this month, which is substantially higher than the 7.8 per cent recorded in December.

However, when seasonally-adjusted the unemployment rate rose by just 0.1 per cent to 8.2 per cent, which is equivalent to 3.617 million labor market members.

Frank-Juergen Weise, head of the Federal Labor Office, explained that the effects of the financial crisis on Europe's economy are still acute, while the unusually cold winter weather is also contributing to job losses.

He said: "We can by no means give an all-clear for the German labor market."

Earlier this week, the market research group GfK published its consumer climate index, which disclosed that confidence in Germany has fallen as labor market problems begin to affect the population.