German unemployment fell in February for a third month in a row, as economic expectations for the eurozone powerhouse keep brightening, figures issued by Federal Labor Agency showed on Thursday.

The Nuremberg-based agency put the seasonally adjusted unemployment rate at 6.9 percent in February, just a tad above the 6.8 percent record low in post-reunification history.

The number of unemployment decreased by 3,000 to 2.92 million in February, according to the agency.

"The German labor market seems to be coping well with the weak economic growth in recent months and overall remains robust," Labor Office chief Frank-Juergen Weise said in a statement.

German employment is at its highest level in more than 20 years ago. The Statistics Office said in a statement issued also on Thursday that a total of 41.4 million people residing in Germany were in employment in January.

After a contraction of 0.6 percent in the final quarter of 2012, the German economy is perking up again as the central bank said last week it expected the economy to expand in the current quarter.

The prospect of a return to growth is cemented by a series of rosy data issued recently.

German consumer confidence will rise for a second month in March, market research group GfK said on Wednesday. In addition, companies also expect a strong recovery in the German economy. The Ifo Business Climate Index for industry and trade rose in February by more than three points. This is the strongest increase since July 2010.