More people in work in Germany mean the federal Labour Agency will cut 10,000 of its employees.
That is 10 percent of the agency’s staff and their jobs will go by 2015 – mostly by not renewing temporary contracts and not replacing people who retire.
The cutbacks will mostly be of administrative staff rather than unemployment councillors.
The move has still be approved by the government.
In May unemployment in Germany fell to its lowest level in 20 years.