Why did service-sector work become important in Thuringia after 1990?

Following German reunification in 1990, the economy of Thuringia underwent a profound transformation. The shift toward service-sector work was primarily driven by the collapse of the region's industrial base, as the wholesale shutdown of former state-owned factories and enterprises led to widespread unemployment.12

As the state transitioned into a free market economy, the reliance on traditional industrial production diminished, necessitating a restructuring of the labor market. Consequently, the state’s economy became largely dependent on service-sector activities, with major urban centers such as Erfurt, Jena, Gera, and Weimar serving as the primary regional hubs for these services. While industrial production remains a component of the economy, the growth of the service sector emerged as a critical response to the economic hardships and structural changes that followed the end of the East German system.12