The combination of rapid economic growth, growing prosperity and mass consumption, and the implementation of generous welfare policies went a long way toward creating a new society in Europe after the Second World War. Old class barriers relaxed, and class distinctions became fuzzier.

Changes in the structure of the middle class were particularly influential in this result. After 1945, a new breed of managers and experts — so-called white-collar workers — replaced property owners as the leaders of the middle class. Ability to serve the needs of a big organization largely replaced inherited property and family connections in determining an individual’s social position in the middle and upper-middle classes. At the same time, the middle class grew massively and became harder to define.

There were several reasons for these developments. Rapid industrial and technological expansion and the consolidation of businesses created a powerful demand for technologists and managers in large corporations and government agencies. Moreover, the old propertied middle class lost control of many family-owned businesses. Numerous small businesses could no longer turn a profit, forcing their former owners to join the ranks of salaried employees.

Similar processes were at work in the Communist states of the East Bloc. The nationalization of industry, expropriation of property, and aggressive attempts to open employment opportunities to workers and equalize wage structures effectively reduced class differences. Communist Party members typically received better jobs and more pay than nonmembers, but by the 1960s the income differential between the top and bottom strata of East Bloc societies was far smaller than that in the West.

The structure of the lower classes also became more flexible and open. Continuing trends that began in the 1800s, large numbers of people left the countryside for the city, drastically reducing the number of European farmers. Meanwhile, the number of industrial workers in western Europe also began to fall as new jobs for white-collar and service employees grew rapidly. This change marked a significant transition in the world of labor. The welfare benefits extended by postwar governments also helped promote greater social equality because they raised lower-class living standards and were paid for in part by higher taxes on the wealthy. In general, European workers were better educated and more specialized than before, and the new workforce bore a greater resemblance to the growing middle class of salaried specialists than to traditional industrial workers.