Steve barking that it might be wurst

Just got finished reading in the paper of record a city in German is in the envious position of 1.5% unemployment and the local factories need workers. That's not what caught my eye.
What caught my eye was in the article it was discussed how the German government went from high  unemployment rate in 2005 to an envious employment record, by lowering the amount of unemployment one could get thus if one wanted to survive one would have to take a job at lower pay. Lowering pensions and having companies higher temporary workers,giving them no security or fringe benefits and by golly lower pay.
I could be wrong, but this could very easily lead to resentment by the newer employees against the older who have the job security.
 I'm looking a head to the future were Germany can't sell it's manufacturing goods abroad because the rest of the countries in the European Union are stuck with greater draconian austerity measures then Germany gave itself and there's a good chance that Asian countries will by buying more of their own manufactured goods then looking to import .  It would be for Germany  like the biblical seven years fat, seven years lean.
 Can the German people pick up the slack?
Will the German economy behave worse then rest of the European Union? Did the German government create a what it thought was a beautiful economy but that in reality down the road it turns into a beastly one.