(fxcue news) - German unemployment increased less than expected in November despite companies reporting job cuts, figures from the Federal Employment Agency revealed Friday. The jobless rate came in at 6.1 percent, the same as in September and October. Also, the rate matched expectations. The number of people out of work increased only 7,000 after rising 26,000 in the previous month. Unemployment was forecast to climb sharply by 20,000. Federal Employment Agency chairwoman Andrea Nahles said the economic weakness continues to have a firm grip on the labor market. The labor force survey results from Destatis today showed that the unemployment rate remained unchanged at 3.4 percent in October. The number of unemployed declined 10,000 from September to 1.51 million. On an unadjusted basis, the jobless rate rose slightly to 3.3 percent in October from 3.2 percent in the previous year. ING economist Carsten Brzeski said this week's macro data have once again illustrates why betting on a strong return of private consumption in Germany is a risky game. Data from Destatis today showed that German retail sales declined by more-than-expected 1.5 percent in October on falling non-food retail trade. Sales were forecast to fall 0.5 percent. German consumer sentiment plunged to the lowest since May as income expectations fell to a nine-month low on growing fears of recession and job losses, survey data from the market research group GfK showed this week. The consumer sentiment index slid to -23.3 in December from revised -18.4 a month ago. The ING economist said the gradual weakening of the labor market looks set to continue. Layoffs in Germany are hardly imminent but take time before they become effective and show up in labor market statistics, he noted.