"The labor market developed positively in July," said Frank-Juergen Weise, president of Germany's labor agency. Demand for workers continues to be high, according to the statement.

The number of people out of work fell by some 4,000 each in western Germany and the eastern part of the country, the labor agency said.

German unemployment extended its decline in July, in a sign that Europe's largest economy is showing resilience to uncertainty unleashed by Britain's vote to leave the European Union.

The number of people out of work fell by a seasonally adjusted 7,000 to 2.682 million in July, data from the Federal Labor Agency in Nuremberg showed on Thursday. Economists in a Bloomberg survey forecast a drop of 4,000. The jobless rate remained at a record low of 6.1 percent.