It was further bad news for Germany's Chancellor Gerhard Schröder on Thursday following reports from two government departments on the state of the labor market. The Federal Labor Agency released a report that showed that German unemployment rose to a seasonally adjusted 26,000 from January to 4.29 million, increasing for the second month in a row. In a separate report, factory orders were shown to have unexpectedly fallen, adding to signs that a recovery in Europe's largest economy is slow to come. Manufacturing orders dropped 2.0 percent, led by a decline in exports, the Economics Ministry said in Berlin. It was the first fall in eight months.