German chancellor Angela Merkel has been given a boost after the country's jobless numbers fell to its lowest level since September 2012.

According to the Nuremberg-based Federal Labour Agency, the number of people out of work decreased by 14,000 to 2.914 million in Europe's largest economy in Feburary.

But the research body also revealed that Germany's unemployment rate held steady at 6.8% – in line with expectations.

German unemployment fell more than expected in February, hitting its lowest level since September 2012 on a seasonally adjusted basis, Labour Office data showed on Thursday.

The news comes ahead of Merkel's address to both Houses of Parliament and a meeting with the Queen.

Merkel will also hold talks with David Cameron, Nick Clegg and Ed Miliband during her one-day visit to the UK.

The Prime Minister is hoping to lobby Merkel about changes to EU treaty, which would enable the Conservative Party leader to return some powers from Brussels.