A Historical Episode of Job-Destroying Technology: Technological Unemployment in the British Industrial Revolution
by Dr. Ben Schneider (University of Cambridge) The fear that new technologies will cause mass unemployment appears during every wave of transformative innovation. Despite the recurrence of these discussions, including in ongoing debates about the effects of AI, many economists and economic historians, including the Nobel laureate Joel Mokyr, doubt that technology has ever caused large-scale job losses and long-term unemployment. They argue, for example, that similar narratives appeared in the 1960s without an obvious rise in the unemployment rate of rich countries. Moreover, while the Industrial Revolution is commonly mentioned as an instance of technological disruption, there is little quantitative evidence for unemployment caused by new technologies, referred to as “technological unemployment”. These optimistic views are misleading. “In Technological Unemployment in the British Industrial Revolution: The Destruction of Hand-Spinning” my article in Past & Present no. 270, I systematically analyze job loss and subsequent unemployment in part of the British textile industry during the Industrial Revolution. In the space of a few decades beginning around 1770, new textile machines replaced work that had employed 8% of the British population. There was insufficient new work available in the growing factory districts to replace the lost jobs, and widespread unemployment and underemployment […]
