German unemployment fell sharply in March as the arrival of milder spring weather marked a pickup in hiring in Europe's biggest economy, sending the jobless rate down to an historic low of 5.8 per cent, according to data released on Friday. Monthly jobless queues in the nation contracted for the sixth consecutive month in March, declining by a more-than-forecast seasonally adjusted 30,000 to 2.556 million, the Federal Labour Agency said. Analysts had expected the number out of work to drop by 10,000 in March. The jobless rate edged down from 5.9 per cent in February to 5.8 per cent in March - its lowest level since German unification in 1990.