In the 1820s, the first major textile manufacturing companies built and began operating their mills along the Merrimack River in Lowell. The city, barely incorporated, need to source employees to staff these new corporations, and there were hundreds of positions to offer children and young adults. The mills began recruiting young people from farm communities throughout New England; many farms were failing just like Lyddie’s, and there were children and families in need of money. The mill owners were aware that many of the young people coming to work would have no connections in town and nowhere to stay, so they built boardinghouses, which they owned and ran, providing a place for their laborers to live that was safe and provided all the necessary amenities. At the same time, the boardinghouses gave them control over the personal lives of their employees through mandates like church attendance, curfews, and rigid parameters for expected behavior. Employees also paid the boardinghouses for the privilege of staying there, which was reflected in their wages. Lowell became the largest producer of cotton textiles in the United States, holding that position for several decades.

Increasing demands on laborers and falling wages inspired many employees to join labor associations to effect change, but they faced difficulty in an economic climate that allowed the factories to employ workers at will and dismiss them for any reason.