Is Germany the Sick Man of Europe?

The German economy is struggling to recover from a recession, being the only G7 nation expected to contract this year. Factors like the energy crisis and weak demand in China are contributing to this downturn. However, there is some optimism for a soft landing, with unemployment near an all-time low, though partly due to a shrinking labor force. SMEs are particularly affected by high energy prices. Long-term growth remains uncertain, especially with external factors like Biden's inflation reduction act posing threats to Germany's industrial edge. The question arises whether Germany could become Europe's 'sick man'.

What is the significance of unemployment rates in the context of the German economy?

What potential long-term issues could arise for Germany's industrial advantage?