However back in 1980, FRG unemployment was 3.4%. It averaged 4.4% from 1974-1979, which included some bad global economic times.

A number of labor market regulations enacted in France and Germany during the 1980′s may be responsible for the permanent rise in those country’s unemployment rates by several percentage points.

http://www.indexmundi.com/germany/unemployment_rate.html

No, Germany has nothing to learn from the US. The high unemployment was (and still is) mostly in East Germany due to the collapse of the East German economy. Imagine the US had in the past decade to rebuild a communist economy with some trillion dollars and integrate 100 million people. Check the unemployment numbers in west German states – those were much less.

So, Germany had it MUCH harder in the last two decades because it had to rebuild a former communist economy, where much of the elites had to be removed or retrained.

If you want to compare the US with Germany, then check the unemployment numbers of West Germany in the last two decades – that would be much more useful.

The recent fall of the unemployment numbers was basically due to full employment in some states of West Germany (even shortage of workers) and improving economic situation in East German states.

“European labor market regulations, advocated by unions in declining European industries who argued “work less, work all” explain the bulk of the difference between the U.S. and Europe”

In France: “Starting in the mid sixties and especially from the
mid seventies onward the reinforced union movement focused heavily of reduction of hours worked. In the late seventies lengthy rounds of negotiation on hours reduction between unions and employers organization finally came to a January 1981 agreement that reduced the working week to 39 hours…the new Socialist Government in 1982
clearly took the side of the unions. In a series of laws (1982, 1986 1987) the government issued regulations that either forced or created strong incentives for employers to reduce working hours by increasing mandatory vacations, making it harder to use overtime, etc…”

It is, in my opinion, not a result of the reunification but of the now decade-long subsidies for Eastern Germany that prove to be a burden for the region. They don’t have any need to get competitive and thus high unemployment reigns. Also, Berlin, f.e. is a master piece of fiscal irresponsibility. The city has no money and only functions, because it is the capital and subsidized by the rest of Germany, and thus it attracts all slackers do-nothings of all over the country. And they still can’t reign in their budget deficits…

Actually, there are a lot of labour-related laws that could be scrapped to make the east more competitive especially for small businesses. There are several guild structures in Germany, that still hamper competition.