Industrialization and Economic Growth in Switzerland

Following the adoption of the federal constitution in 1848 and its revision in 1874, Switzerland began developing into a modern state with federal oversight in areas like defense, trade, and law, while maintaining significant cantonal autonomy. The country’s political stability laid the foundation for rapid economic growth and industrialization, especially in urban areas.

Textiles became the leading industry during this period, with Basel becoming a hub for silk production. By 1888, 44% of the workforce consisted of women, most employed in textile mills and domestic service. Interestingly, the share of women in the workforce between 1890 and 1910 was higher than during the 1960s and 70s.

The expansion of the railway network accelerated industrialization. The first Swiss railway, connecting Zürich and Baden, opened in 1847, with major infrastructure projects like the Gotthard Rail Tunnel completed by 1881. Banking also became central to the economy, marked by the founding of the Union Bank of Switzerland in 1862 and the Swiss Bank Corporation in 1872.

Swiss watchmaking, which began in the 18th century, flourished during the 19th century, establishing La Chaux-de-Fonds as an industrial center. Zürich also expanded, absorbing its industrial suburb Aussersihl in 1891. Meanwhile, tourism emerged as a major industry, spurred by the "Golden Age of Alpinism" in the 1850s and 60s, attracting adventurers and travelers to the Swiss Alps.

These developments laid the groundwork for Switzerland’s reputation as an industrial, financial, and tourism powerhouse in the 20th century.