The number of people registered as out of work fell by 67,000 to 2.893 million this month, pushing the rate down 0.1 point to 6.9 percent, the Federal Employment Agency (BA) reported.
The positive trend is tipped to continue for the second half of the year.
“We are assuming on the basis of the current situation that foreseeably – taking into account all the risks there are – the unemployed won't rise again above three million,” BA chairman Frank-Jürgen Weise said.
Only with the cyclical winter bump in unemployment in January will the number likely rise again above three million.
“From the great demand for labour, we can gauge that the economic situation is really quite stable.”
Weise said that aside from the strong economy, demographic developments meant that there were fewer people of working age, freeing up the labour market.
Economy Minister Philipp Rösler called for more skilled immigration to satisfy the demand for workers.
“Germany needs highly skilled workers from abroad,” he said.
Unemployment fell particularly in the retail, construction, transport, IT and communications sectors, as well as finance and insurance.
He also acknowledged that much of the growth in employment over the past decade had been in short-term, part-time and low-income jobs.
At the same time, there are serious labour gaps in some areas, notably a shortage of doctors everywhere except in Berlin and Hamburg.