Division of labour

Eight steps in the manufacture of sewing needles

The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organisations, and nations are endowed with, or acquire, specialised capabilities and either form combinations or trade to take advantage of others' capabilities in addition to their own. Specialised capabilities may include equipment, natural resources, and skills. Training and the integration of equipment and other assets are often important. For example, an individual may specialise by acquiring tools and the skills to use them effectively, just as an organisation may specialise by acquiring specialised equipment and hiring or training skilled operators. The division of labour is the motive for trade and the source of economic interdependence.

An increasing division of labour is associated with the growth of total output and trade, the rise of capitalism, and the increasing complexity of industrialised processes. The concept and implementation of division of labour has been observed in ancient Sumerian (Mesopotamian) culture, where assignment of jobs in some cities coincided with an increase in trade and economic interdependence. Division of labour generally increases both overall producer productivity and individual worker productivity.

After the Neolithic Revolution, pastoralism and agriculture led to more reliable and abundant food supplies, which increased the population and spurred the specialisation of labour, including the emergence of new classes of artisans and warriors, as well as the development of elites. This specialisation was furthered by the process of industrialisation, and Industrial Revolution-era factories. Accordingly, many classical economists as well as some mechanical engineers, such as Charles Babbage, were proponents of the division of labour. Also, having lower-paid but more productive unskilled workers perform single or limited tasks eliminated and replaced the long training period required for artisans.