Future of Work: Does History Repeat Itself— Part 2
Industry 2.0 — The Age of Electricity and Steel
Introduction
The second Industrial Revolution, also known as Industry 2.0, took the world by storm in the late 19th and early 20th centuries. This era was characterized by major innovations in electrical power and the mass production of steel, driving further mechanization and leading to a significant leap in productivity. The World GDP per capita nearly doubled from $1,263 in 1820 to $2,220 in 1913, showcasing the dramatic economic impact of this era [1].
Here are some interesting facts about the job market in this era before we dive into the details of the jobs impacted positively or negatively.
Rise in child labour — With any meteoric rise in wealth creation opportunities, comes a flood of capitalists who do their best to seize those opportunities. This typical human mindset saw the widespread rise of child labour. Children, some as young as six years old, were employed in factories and mines due to their small size and the cheap labor they provided. This practice led to significant societal and policy changes, with the introduction of laws to regulate child labor and compulsory education.
Role of Women: This period saw a sharp increase in the participation of women in the workforce, primarily in factories and textile mills. This shift was significant as it began to change societal norms and expectations around gender roles in the workforce.
Union Movement Growth: Poor factory conditions spurred the formation of large-scale unions, advocating for workers’ rights.
Company Towns: Large companies built self-contained towns for workers, offering amenities but also presenting challenges like wage exploitation. I myself was born and brought up in a town in Orissa, India where the bulk of the workforce worked in a steel plant. The idea behind these towns and the trend started during this period.
Engineering Professionalization: The need for machinery experts led to the professionalization of engineering, establishing it as a respected field with dedicated institutions.
The Wane of Physical Labor
Coal Miners: With the invention of electricity, the demand for coal started to decline. In the U.S, coal mining jobs peaked in 1920 at 785,000 but fell dramatically in the ensuing years [2].
Textile Artisans: The invention of more advanced power looms and the proliferation of textile factories made the work of individual weavers less in demand. In 1850, about 70% of all cotton was still handpicked, but by 1920, the mechanization of textile manufacturing had reduced this number to approximately 5%.
Blacksmiths: Industrial methods of steel production and mechanized metalworking meant less need for blacksmiths, who traditionally forged iron and steel objects by hand. In the UK, the number of blacksmiths peaked in the 1870s at around 200,000, but by the 1930s, this number had decreased to around 100,000.
Railway Workers: The development of more advanced, efficient railway systems and the use of standardized time reduced the need for certain roles, such as brakemen and firemen. In 1920, railroads employed about 2 million people in the United States. However, by the late 20th century, the number of jobs had significantly declined due to increased automation and efficiencies.[5]
Jobs which changed their nature
Factory Workers and Technicians: The invention of the assembly line by Henry Ford in 1913 revolutionized factory work, leading to mass production. The number of factory workers exploded during this period, with 3.4 million manufacturing jobs created in the U.S. alone between 1900 and 1920 [3]. It is important to note that the introduction of assembly lines and mechanization changed the nature of factory work, often requiring less skill but increased endurance.
Miners: The continued demand for coal to fuel steam engines meant that mining jobs were still in high demand. However, mining methods changed significantly, with mines becoming deeper and more dangerous and the introduction of new equipment. In 1870, around 64,000 people were employed in coal mining in the US, by 1930, the number had risen to 704,000.
Managers — From Specialists to Strategists: Industry 2.0 required managers to move beyond overseeing operations to strategic planning and coordination to achieve efficiency on the assembly line. It is important to note that strategy as an integral part of managerial roles wasn’t a widespread concept before this — it was an option and those who were good at strategy achieved great heights, but it wasn’t a widespread notion nor a part of the standard job description so as to speak.
The Emergence of New Job Roles
Electrical Engineers: The electrification of factories and cities led to a surge in demand for electrical engineers who could design, install, and maintain electrical systems. In the U.S. The number of electrical engineering graduates grew from fewer than 200 in 1880 to over 1,000 by 1900 [4].
Automobile Workers: The invention of the automobile and the subsequent growth of the auto industry led to the creation of a wide range of jobs, from assembly line workers to mechanics. By 1929, about 3.3% of the total US labor force was engaged in the automobile industry.
Steelworkers: The rapid growth of the steel industry, fueled by the Bessemer process and later methods, created a variety of jobs in steel production. The steel industry employed over 500,000 workers by the early 20th century.
Telephone Operators: The spread of the telephone for commercial and private use led to the creation of jobs for telephone operators. In 1891, AT&T employed around 6,500 operators. By the 1920s, this number had grown to 175,000.
Creation of Sales and Marketing Roles: The mass production of goods led to the creation of modern sales and marketing roles. As competition increased, so did the need for advertising and sales personnel.
New Industries Created
Electrical Power Industry: The development and spread of electricity led to the creation of a whole new industry around electrical power generation and distribution. By 1930, more than 90% of urban homes in the US had electric power.
Automotive Industry: The birth and rapid growth of the automotive industry was a significant development of this era. By the end of the 1920s, nearly 26 million motor vehicles were registered in the US, making it the largest auto producer in the world.
Petroleum Industry: The development of more effective methods for extracting and refining oil, coupled with the growing demand for oil for lighting and later for motor vehicles, led to the growth of the petroleum industry. The number of oil wells drilled in the US went from around 23,500 in 1900 to over 536,000 by 1930.
Chemical Industry: The Second Industrial Revolution also saw significant advancements in chemistry, leading to the development of new products like synthetic dyes and later plastics, and the growth of the chemical industry. From 1880 to 1930, the value of the US chemical industry’s output rose from about $200 million to $2.8 billion.
Conclusion: The Expansion of Opportunity
Industry 2.0 fundamentally changed the job landscape, bringing new opportunities and challenges. It transformed the way work was done, moving from individual to mass production and mechanization. The growth of factories and assembly lines further marginalized certain manual labor roles, but it also created numerous new positions which very quickly resulted in a huge demand for a workforce trained in the “new” technology.
In the 2nd industrial revolution as well, similar to the first industrial revolution (details in the Part 1 of this series), a lot of industries saw ‘skill’ being replaced by people who knew how to design and operate new technology along with the ability to learn them quickly. The duration of work and the physical/mental demands of work also increased in both these eras leading to a demand for people with a higher endurance.
Women (rightly so) and children (unfortunately so) were brought into the workforce to fill the gaps in supply and demand. This and the drive for profitability saw the rise of poor working conditions but then also gave birth to trade and worker unions, the principles of which form the bedrock of the current state of employee rights.
As we forge into the digital age, we must remember that the future of work is a continuum that reflects our technological and societal advancements. In the next article, I will look to explore the third Industrial Revolution and its ramifications on the global job market.
References
[1] “Maddison Project Database 2020,” Bolt, J., Inklaar, R., de Jong, H., van Zanden, J.L., 2020
[2] “Coal Mining in the United States,” Wikipedia
[3] “Factory Manpower in the United States, 1830–1920,” American Economic Review, M. Abramovitz, 1951
[4] “Engineers in the United States before the Civil War,” Transactions of the Newcomen Society, Monte A. Calvert, 1960
[5] “The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention” by William Rosen.
