Germany has the third largest economy in the world, and Berlin's workers, like other Germans, are well paid. The generally cooperative relations among government, management, and labor create a favorable working environment for Berlin's 1.6 million workers, who tend to be skilled and highly productive.

More than half of Berlin's workers are employed in service industries, which include government, finance, and retail trade. The rest of the city's workforce is employed by businesses manufacturing products such as electrical devices, chemicals, clothing, and machinery. Some people work at skilled crafts such as carpentry and shoemaking that have flourished in the city for centuries, while others work in new high-tech businesses that are just starting.

Since reunification Berlin has seen many changes that affect employment. For the first time since World War II, Berlin is the seat of a unified national government, which has meant a growth...