Germany's unemployment rate will peak at the end of 2010, according to a senior government official.

Frank-Juergen Weise, head of the country's labor office, has predicted that the European Union member state will witness the worst effects of the employment crisis in the winter months of 2010.

Adopting an optimistic tone, Mr Weise told Dow Jones Newswires that the jobless rate will not surpass four million by the end of 2009, nor reach beyond five million in 2010.

However, he did suggest that a major rise in unemployment is "inevitable" - though he countered this by suggesting that a drastic deterioration is not likely in the short-term.

Last month, Germany's unemployment rate declined by 0.1 per cent to 8.1 per cent, as signs of economic recovery eased pressure on the labor market.

Commenting on the data at the time, Mr Weise referred to October's figures as a "surprisingly favorable development"