Berlin  - German unemployment rose less than expected in February, data released Thursday showed, as the global recession tightens its grip on Europe's biggest economy.

The Nuremberg-based labour office said in seasonally adjusted terms Germany's dole queues swelled by 40,000 this month to 3.311 million after the numbers out of work rose by 56,000 in January.

In unadjusted terms, unemployment rose by 63,000 to 3.552 million, as a result pushing the jobless rate up to 8.5 per cent, compared with January's rate of 8.3 per cent.

The new German jobless data follows a series of announcements by companies about plans for layoffs and production cuts with the cold winter weather also likely to have impacted on the February labour market data.

Moreover, the signs of rising unemployment are emerging as Germany's political parties gear up for a national election set for next fall.

With the global economic slowdown gaining momentum, the German government predicts that GDP will shrink by 2.25 per cent this year.

But some analysts believe the 2009 contraction could be as much as 4 or even 5 per cent. (dpa)