I wouldn't worry about minor shrinkage between the slab and the block wall. It's normal. Fill it with an elastomeric caulk if you really want to make the gap go away. There should have been an expansioin joint filler around the perimeter of the slab to help absorb some of this movement.
As far as the building possibly sinking, that will turn into a nightmare. I just got done with that same problem on a commercial job. Couple of questions:
Was there a large amount of fill needed to build up the pad before you built the garage? If so, was it properly compacted in 8"-12" lifts as it was built up?
Are you seeing cracking or gaps anywhere else in the building that would indicate differential movement?
First thing to do is get the exterior trench to drain even if you have to dig it buy hand or use a bucket to move most of the water. Saturated soil has very little if any structural bearing capacity.
Second thing to do is make a couple of reference marks about 1 foot above the slab every few feet along wall in the area that you think the foundation is sinking. Check those measurements every couple of days. If you start seeing changes in the measurements, you need to hold off on pouring anymore concrete and get a foundation repair company in to take a look at things.
If you have to stabilize the foundation, there are a few options that a structural engineer can design for you. From my experience, steel push piers can be installed at roughly 5'-0" o.c. and cost about $3000 each depending on how deep they have to go. For a 34' wall, you'd probably need about 8 or 9 piers.