BERLIN – With its record-low unemployment (5.4%), Germany stands out among fellow eurozone countries such as France or Spain, suffering from sky-high jobless rates.

Part of Germany’s success is due to a series of reforms pushed through by the Social-Green government of former chancellor Gerhard Schroeder ten years ago, overhauling the labour market and welfare system.

He made it easier for companies to hire and fire, lowered taxes and limited social benefits. The Schroeder model is now viewed as a must-do for crisis-plagued EU countries in the south.

But the flipside of Germany’s high employment rate is low-paid and unstable jobs.

A debate in the German Bundes...