I'm not sure that's fair. Laboring on construction projects, joining armies, digging minerals out of holes, seasonal work on farms, serving on ships, and so on have been ways for people to earn a living for millennia, selling their labor, not their produce. Having the capital to ply a trade or craft - money to buy raw materials, and tools to add value to them - would have been beyond the reach of most people for a lot of history. There's always been a labor market.
I guess what you mean is that the industrial revolution massively increased the amount of capital you needed to be able to produce goods competitively. Buying a set of tools and some raw materials to make things by hand stopped being a viable route out of the labor market into 'entrepreneurship' when mass machine-produced goods could be supplied more cheaply. Your option was to sell your labor to someone who owned some big machines, much like your ancestors sold theirs to people who owned a patch of fertile land, or a big pile of wood they wanted making into a ship.
So in a sense it created the modern labor market in that it locked a lot more people into it, and obviously diversified the kinds of jobs that existed. On the other hand, it was, as you say, a massive productivity multiplier which meant we were able to create more and more wonderful and complex goods for, in real terms, less and less cost, to the point where nowadays by exchanging your labor for cash, you can soon have enough money to afford a box of electronics that fits in your pocket and allows you to access all the world's information.
I guess what you mean is that the industrial revolution massively increased the amount of capital you needed to be able to produce goods competitively. Buying a set of tools and some raw materials to make things by hand stopped being a viable route out of the labor market into 'entrepreneurship' when mass machine-produced goods could be supplied more cheaply. Your option was to sell your labor to someone who owned some big machines, much like your ancestors sold theirs to people who owned a patch of fertile land, or a big pile of wood they wanted making into a ship.
So in a sense it created the modern labor market in that it locked a lot more people into it, and obviously diversified the kinds of jobs that existed. On the other hand, it was, as you say, a massive productivity multiplier which meant we were able to create more and more wonderful and complex goods for, in real terms, less and less cost, to the point where nowadays by exchanging your labor for cash, you can soon have enough money to afford a box of electronics that fits in your pocket and allows you to access all the world's information.