Why Do Jeans Still Have a Pocket Too Small for Your Hand?
The tiny pocket nested inside the front pocket of many jeans was not created for coins, matches, or modern gadgets. It was made for a personal object that has largely disappeared from everyday use: the pocket watch.
The first riveted blue jeans produced by Levi Strauss and Jacob Davis in the nineteenth century were work clothes. Their customers included miners, laborers, and other people whose trousers endured pulling, bending, tools, and rough surfaces. Many men carried watches attached to chains, but keeping a watch loose in a large pocket could expose it to scratches and impacts. A small fitted compartment held it more securely.
Levi Strauss and Company describes this feature as the watch pocket. It was present on early waist overalls, the name then used for jeans. The familiar arrangement evolved gradually. The earliest jeans had two front pockets, the small watch pocket, and only one rear pocket. A second rear pocket was added in 1901. This means the little compartment often called the fifth pocket is not actually the fifth one historically. The second rear pocket earned that distinction.
Wristwatches later replaced pocket watches for most people, but the small pocket survived. Manufacturers preserved it because it had become part of the expected appearance of jeans, even after its original purpose faded.
Every time someone wonders what could possibly fit inside it, they are encountering a small piece of nineteenth century technology preserved in modern clothing.
Source: Levi Strauss: The Man Who Gave Blue Jeans to the World, Lynn Downey -The Flying Carpet by Viktor Vasnetsov (1880). Oil, canvas. A History of Fashion in the 20th Century, Gertrud Lehnert

The Flying Carpet (1880)
Source: By Viktor Vasnetsov