Like most other things, labor is highly regulated in Germany. You've got to understand that (from my experience as an outsider) it seems to be a country where it matters more what you are on paper (e.g., degrees, certifications, etc) than what you can actually do (e.g., practical experience). Not that the latter is not valued at all, but on the job market, it's often not sufficient.

Labor costs are determined by a lot of regulations - minimal wage, mandatory health insurance fees, mandatory pensions fees, etc. make labor costs in Germany much higher than the average in the West. So, it's all not that easy.