German unemployment falls slightly amid signs of slackening economy

BERLIN, July 1 (Reuters) - Unemployment in Germany fell slightly in June compared to the previous month, data from the Federal Labour Office showed on Monday, but there was an increase in the amount of underemployment, clearly pointing to a weakening in the economy.

Seasonally adjusted unemployment fell by 1,000 to 2.281 million compared to the month before. A drop of 3,000 had been forecast. The unemployment rate remained at 5%.

“The influence of a slackening economic environment is showed most clearly in underemployment, which also reflects changes to labour market policy and short-term inability to work,” the office said in a statement. In seasonally adjusted terms, underemployment rose by 6,000 to 3.172 million.

Reporting by Thomas Escritt Editing by Michelle Martin