Germany's unemployment rate fell in October to 11 percent and the economy is gaining momentum, the Federal Labor Office reported on Wednesday.

The jobless rate fell by a seasonally adjusted 21,000 in October in the western part of the country, and declined by 15,000 in the east.

In October, the number of those without a job dropped by 94,000 without seasonal adjustment to a total of 4.556 million.

Unemployment rate has fallen by about 140,000 over the last five months.

In recent years, the German government has taken a wide variety of measures aimed at invigorating employment.

On January 1, 2005, the government introduced "Arbeitslosengeld II" (unemployment benefit II). Conceived as a basic minimum income, it replaces social welfare and unemployment benefit, both of which are financed through taxes.

If an unemployed person takes on paid employment, only part of the additional income is deducted from the unemployment benefit II payment.

The reforms were also accompanied by a program entitled " Capital for Work" aimed at small and medium sized companies.

Under the measure, if a company offers an unemployed person an unlimited contract it may be rewarded with a low interest loan of up to 100,000 euros.

High unemployment and high oil prices have cast shadows over the world's third largest economy, which has been very sluggish in recent years.

Source: Xinhua