Berlin - German unemployment fell sharply in August, dropping by a bigger-than-forecast 40,000 to 3.2 million, the nation's labour office said Thursday.

Analysts had expected seasonally-adjusted unemployment would drop by more a more modest 10,000 this month.

In the more politically important seasonally-unadjusted terms, the numbers out of work fell by 14,000 to 3.196 million which brought the jobless rate down to 7.6 per cent from 7.5 per cent in July.

The August seasonally-unadjusted figure was 510,000 less than in the August last year. (dpa)