German unemployment rate fell steadily post 2005 as labour market reforms that reduced labour costs (and therefore increased competitiveness) began to take effect. After 2005 Germans essentially decided to work as hard or harder for less reward, in other words they decided to sacrifice. The results of such a compromise is booming exports, as of January 2012 record low unemployment and high growth. At a time when most developed economies are going through considerable contraction.
Freedom Economics 