Berlin - German unemployment fell in October, defying the economic gloom facing the nation, analysts say.

After dropping by 29,000 in September, seasonally adjusted unemployment data to be released Thursday is expected to show the numbers out of work in Europe's biggest economy slipped by another 10,000 this month.

This would leave the nation's unemployment rate at 7.6 per cent in October.

However, economists believe that the German labour market still reflects the strong economic growth rate that the nation posted at the start of the year and predict that the nation's economy will contract as a global economic downturn takes hold. (dpa)