The document summarizes Prof. Dr. Klaus F. Zimmermann's analysis of Germany's response to the economic crisis and relatively low unemployment. It finds that Germany was able to effectively buffer the impact through existing labor market flexibility measures like short-time work, collective bargaining agreements, and automatic stabilizers in the tax system. This allowed companies to hoard labor rather than lay people off, particularly in export-oriented manufacturing. While helping in the short-term, these internal flexibility measures may not be as effective over the long-run and could delay needed structural adjustments.