@Chrona On your first comment, where you said "Glad to see the author doesn't avoid the fact that even such conditions were a step up from feudalism."
Her solution in this particular situation was probably about the best she could do. And spending time foraging in the woods is certainly better than being trapped in a filthy place, starving. Even in terms of "liberty"--they don't have that now, they're basically in prison, not allowed to leave their orphanage. And as many people said, some degree of child labour is hardly an innovation in this setting.
But! That's not something that generalizes to the real-world history of industrialization. Industrial revolution child labour (and for that matter adult labour) most certainly was
not a step up from feudalism. The hours were much longer, the nutrition and housing worse, the death rate far higher, the work itself worse in almost every way. Life expectancy went way down. Until trade unions and things like the Chartist movement started forming, industrial labour was a long step down from peasant status, let alone apprenticeship and later journeyman status in a craft guild. In the very early days, the big problem was trying to get anyone to work for wages when they could instead be small farmers or independent craftspeople. But it was around that time that various "enclosure" laws were passed, which kicked peasants off of all or part of their lands, took away the "commons" which everyone would graze their livestock on and such, and made foraging and hunting on public land illegal. Basically, they chucked lots of the peasants off their farms, leaving them nowhere to go and nothing to do to avoid starving, leaving them no choice but to start working for the new class of workshop/factory owners for wages. And those owners used the fact that these dispossessed peasants had no choice ruthlessly, leading to depths of poverty the world had rarely seen. Also a whole lot of productivity, but let's not pretend it was an improvement for most people--it wasn't, and it wasn't meant to be. For it to become that way, lots of people had to unite and struggle to take some of the proceeds.