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German unemployment edged up in July, but the Federal Labour Agency blamed seasonal factors such as school-leavers registering as unemployed and a companies delaying hiring until after the holiday season.

The total adjusted to take into account seasonal effects fell though by less than economists had forecast.

The unadjusted jobless rate rose from 6.9 to seven percent.

Labour office official Heinrich Alt said: “The positive development on the jobs market continued in July.”

The German economy slowed in recent months but is expected to pick up again during the third quarter.

Many analysts predict full year growth rate will be over three percent.

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