2. Industrialization. The early 19th century saw the beginnings of industrialization in the United States, with the establishment of factories and the development of new technologies, such as the cotton gin and the steam engine. Industrialization had a major impact on the American workforce, as it led to the rise of a new class of industrial workers and the decline of traditional agricultural livelihoods. It also led to increased urbanization, as people moved to cities in search of work.