Technological Unemployment in the British Industrial Revolution: The Destruction of Hand-Spinning

Abstract

This article analyses the elimination of hand-spinning in Britain during the Industrial Revolution and shows that it produced large-scale technological unemployment. First, it uses new empirical evidence and sources to estimate spinning employment before the innovations of the 1760s and 1770s. The estimates show that spinning employed 8 per cent of the population by about 1770. Next, the article systematically analyses the course, extent and locations of technological unemployment produced by mechanization using more than 200 detailed qualitative sources. Evidence from more than 2,000 observations by contemporary social commentators, county agricultural surveys and the 1834 Poor Law Commission’s Rural and Town Queries shows the breadth and duration of unemployment following mechanization. The destruction of hand-spinning began to impact women and households in the 1780s, and the effects persisted until at least the mid 1830s. This technological shock likely had an unequal effect on family incomes that resulted from variation in household composition and local labour market conditions. The findings demonstrate that unemployment must be incorporated into analysis of the impacts of industrialization on living standards and they highlight the potential long-run costs of job-replacing technology.