As for the differential in German employment rates East and West: one of the worst economic decisions (although probably politically impossible NOT to do) was wage equalization between the two Germanys when there was no equality of skills. It doomed the East to receive no major investment, for what entrepreneur in his/her right mind would invest in a factory where the wages were among the highest in Europe, but the skill levels were sub-par? All that this did was push investment further east to Poland and Hungary, whose wages have been rising with their skill level.
Bottom line, you can have as much unemployment as you are willing to pay for.