The number of unemployed Germans rose more than four times what analysts had expected in May. Still Europe's largest economy held onto its jobless rate of 6.9 percent -- lower than the majority of euro zone countries.
Germany and France are launching a 'New Deal' to combat the problem of youth employment in Europe. 24 percent are out of work in the euro zone -- that figure rises to more than 50 percent in Greece and Spain.
More than a million foreigners flocked to Germany for work last year, the biggest influx since 1995. Most of the migrants were from Eastern Europe, but many came from recession-hit countries elsewhere in the euro zone.