Germany's unemployment declined unexpectedly by a seasonally adjusted 16,000 in January, the Federal Labor Agency said Thursday. Economists were expecting an increase of 8,000 for January.

The number of unemployed totaled 2.92 million. Driven by a sharp fall in unemployment, the jobless rate came in at 6.8 percent, down from 6.9 percent in December.

The rate was forecast to remain unchanged at the December level.