Because it was the age of the industrial revolution where factories and machinery operated by workers were being created. This was the start of the factories and the production cycle of commodities and goods.
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Most of the children were homeless and need a home. The factory owner provide them with a home but in return the children had to work. The children also didn't get money
There were no laws against it at the time, it was cheap labor and the families needed the money. the same reasons it is still going on in some 3d world countries.
factories hired children workers because;they were cheaper to employ... sometimes they didn't even get paid for working up to 18 hours with one hour of break!