BERLIN, Aug 31 (Reuters) - German unemployment fell more than expected in August, official figures showed on Tuesday, as a recovery continues in Europe’s largest economy despite rising COVID-19 figures. The Labour Office said the number of people out of work fell by 53,000 in seasonally adjusted terms to 2.538 million. A Reuters poll had forecast a fall of 40,000. The seasonally-adjusted jobless rate fell to 5.5%, the lowest since March 2020, when Germany entered its first coronavirus lockdown. Germany coronavirus cases have been rising since July, but the number of deaths have fallen with more than of half of the population fully vaccinated, pushing the government to stop using the coronavirus infection rate as its yardstick for deciding on restrictions. (Reporting by Riham Alkousaa, editing by Emma Thomasson) Our Standards: The Thomson Reuters Trust Principles.