Historical records indicate that a settlement named Druzhkivka was established in this area by 1781. From the late 19th through the 20th century, Druzhkivka grew into a mid-size industrial city with several large factories producing mining equipment and machinery, hardware, kitchen stoves, china tableware and bricks, as well as several clay-extracting quarries in the city's vicinity.[citation needed] The economic collapse that resulted from the breakup of the Soviet Union resulted in the rapid decline of local industries, with factories closing or barely functioning—a condition that led to high unemployment and a population exodus. When the jobs disappeared, many of them moved away. The current population of less than 60,000 is well below the historical high of at least 80,000 during the mid-1980s. Currently, many residents work part-time in various other countries. However, since temporary foreign workers bring their incomes back home to spend, this has led to the rapid growth in the local services and retail industries. [citation needed]
During World War II, Druzhkivka was occupied by the German army from October 22, 1941, to February 6, 1943, and again from February 9 to September 6, 1943. During their occupation, the SS killed many local Jews. A witness from the village described the SS hanging Jews along the railway.[2]
During the 2014 pro-Russian conflict in Ukraine the town was captured in mid-April 2014 by pro-Russian separatists.[3][4] The city was eventually recaptured by Ukrainian forces on 7 July 2014, along with Bakhmut.[5][6]