Germany's sweeping welfare reforms went into effect without a hitch yesterday as labour offices cut payments for a million jobless and qualifying tests got tougher.

Threatened mass protests to oppose the most far-reaching welfare reforms in a generation failed to materialise on the first day of the new, lower payments.

Some 300 protesters tried to enter the main jobs centre in central Berlin but police blocked their path.

"The turnout is a bit disappointing but when people start realising the impact of this then they'll come out," unemployed protester Detlef Stuye, 50, said.

The reforms are intended to help halve unemployment by 2010 but in the short-term they are expected to boost the jobless to close to five million. In November, 4.64 million Germans were out of work, roughly 10.8 per cent of the work force.

Demonstrators had threatened to storm labour offices in 55 cities. Many job centres hired security guards to protect staff and police have trained employees on handling angry recipients.

But officials said there were no signs of problems yesterday morning.

Deputy chief of the Federal Labour Office Heinrich Alt said "things appear to be going fairly smoothly" and he expected, on average, 15,000 fewer jobless this year. He based the estimate on economic growth of 1.75 per cent, he told a news conference.

Municipal authorities said in a statement: "Even if there are problems to overcome in the home-stretch, everyone will be able to get their money today."

Chancellor Gerhard Schroeder, who made the reforms the cornerstone of his policies, has insisted he won't scale back the measures, a stance that initially sent his popularity into a tailspin over fears he was destroying the welfare state. But Mr Schroeder has since seen his standing surge because of his steadfast refusal to bow to pressure from the left wing of his Social Democrat party and complaints from those who stand to lose state support if they refuse jobs.

Data released by the Federal Statistics Office yesterday showed employment posted its first increase in three years in 2004, boosted by government measures to help the unemployed back to work.