The Breeds of Man
Dwarves were bred to labor in mines, though they’re also suited to most any other labor that requires strength and can benefit from the laborers being of small stature. Over the millennia the dwarves have settled firmly into their niche. It’s a rare dwarven community indeed that does not involve mining of some kind.
That’s not to say that all dwarves are miners, or live in mines. The dwarven kingdoms that command the mountains of the world are all filled with farming, fishing and trade communities much like those of any other civilized race, albeit built to a dwarven scale. Which is to say, humans would find the accomodations…cramped. But all of these dwarven communities are tied to the well-defended underground cities the dwarves are known for, and in times of emergency, the villagers can retreat to safety there if necessary.
Most dwarves reside in the mountainous dwarven kingdom(s). These kingdoms are virtually impregnable, underground fortresses bristling with armed defenders (and supported by the armed citizens of the villages above). The dwarves are formidable warriors when needs must, but traditionally choose to remain strictly neutral when it comes to the squabbles of other nations. In times of war, they guard their frontier, allowing no armed parties from any side of the conflict to enter their lands.