Laborintensive

Laborintensive, commonly written as labor-intensive or labor intensive, describes production processes that require a large amount of human labor relative to capital inputs. In such systems, the output depends more on workforce size and effort than on machinery or automation. Labor intensity can be measured by labor hours per unit of output or by the share of total production costs allocated to labor.

Labor-intensive industries are common where capital equipment is expensive or scarce, where tasks are difficult to automate, or where labor costs are low enough to justify manual methods. Examples include agriculture, forestry, fishing, textiles and garment manufacturing, construction, hospitality, and certain caregiving services. In many developing economies, labor-intensive production supports employment and export growth, though productivity and quality can vary with training and working conditions.

Economic and strategic implications include trade-offs between employment potential and efficiency. Labor-intensive methods may enable rapid job creation and adaptability but can be vulnerable to wage fluctuations, labor shortages, strikes, and limited scalability. They may also constrain product quality, consistency, and safety without adequate training and management. Conversely, high labor costs or automation may push firms toward capital-intensive solutions.

Development patterns often involve a shift from labor-intensive to more capital-intensive or automated production as technology, infrastructure, and income levels rise. However, some sectors retain strong labor intensity due to low capital barriers, specialized crafts, or regulatory and social considerations.