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Labor intensity

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However these two measures have limited value: they only measure direct labor intensity and they exclude the extent to which sectors are linked to another sector of the economy. For instance, a given sector may itself not be particularly labor-intensive, but it might utilize (as inputs) the output of
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Before the Industrial Revolution, the major part of the workforce was employed in agriculture. Producing food was very labor-intensive. Advances in technology have often increased worker productivity, so that some industries are less labor-intensive, but some industries, such as mining and
131:. Labor intensity is measured by its proportion to the amount of capital to produce goods or services. The higher the labor cost, the more labor intense is the business. Labor cost can vary because businesses can add or subtract workers based on business needs. When it comes to controlling 219:. For countries which are not wealthy and generate low levels of income, labor-intensive industries can bring economic growth and prosperity. In most cases, these low income countries suffer from lack of capital but have an abundant labor force, such as some 259:
of the products manufactured by labor-intensive industries can strengthen the export base of a developing country. These exports help the economies by earning foreign exchange, which can be used to import essential goods and services.
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Labor-capital ratio: the relationship between employment and capital stock. This ratio indicates the relative use of factors in an activity and the extent to which it is labor-intensive compared to capital-intensive.
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The ratio between employment and value added, which indicates the labor intensity of production. This measure indicates the extent to which an activity absorbs labor for each unit of value added.
237:. The country has also become one of the world's leading manufacturing bases, with leading suppliers of products such as household electric appliances, garments, toys, shoes and 289:
Employment multipliers essentially indicate what increase (decrease) in economy-wide jobs could be associated with a given increase (decrease) in final output of a sector.
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These two measures are different ways of measuring labor intensity, Neither is superior in itself, the choice of measure depends on the specific issue of interest.
135:, labor intensive businesses have an advantage over those that are capital intensive and require a large investment in capital equipment, such as the 244:
Supply of highly skilled labor to any industry can boost the industry growth rate. In this way, underdeveloped countries can improve their
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in the late 1700s, while its inverse, capital intensity, has increased nearly exponentially since the latter half of the 20th century.
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economies, a labor-intensive industry structure can be a better option than a capital-intensive one for quick
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is often done by hand as it is difficult for machines to pick, for example, strawberries or apples from trees.
202:. In this case, we tend to see higher labor-intensive production. Pottery is an example of a niche product. 234: 108: 216: 136: 97: 382: 249: 212: 195: 150:, because workers may demand pay increases, as the inflation lowers the value of their earnings. 93: 220: 101: 331: 166: 140: 307: 245: 238: 423: 358: 230: 191: 175: 128: 120: 171: 17: 199: 124: 147: 194:— If a company specializes in a niche market, there will be less scope for 223:. The use of such an abundant labor force may lead to industrial growth. 181: 161: 132: 407: 256: 186: 286:
A solution could be to consider employment multipliers by sector.
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A labor-intensive industry can be particularly vulnerable to high
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Labor intensity has been declining since the onset of the
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industries contribute about 35 per cent to the country's
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There are more than one way to measure labor intensity:
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to produce its goods or services. In such industries,
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A labor-intensive industry requires large amounts of
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Trade in Labor-Intensive Manufactures. (p. 86 - 115)
383:"Main-d'oeuvre par pays - Carte des Pays - Afrique" 283:other sectors that are highly labor-intensive. 154:agriculture, are still quite labor-intensive. 8: 100:) used in any given process. Its inverse is 332:"Labor Intensive Definition & Example" 77:Learn how and when to remove this message 40:This article includes a list of general 308:"Labor Intensive: What You Should Know" 298: 7: 353: 351: 46:it lacks sufficient corresponding 25: 31: 157:Some labor-intensive sectors: 92:is the relative proportion of 1: 213:underdeveloped and developing 229:has a large workforce, and 139:. When it comes to include 127:are more of a concern than 451: 115:Labor-intensive industries 239:light industrial products 435:Macroeconomic indicators 430:Labour economics indices 207:The role in the economy 61:more precise citations. 235:gross domestic product 109:Industrial Revolution 336:investinganswers.com 217:economic development 137:automobile industry 250:capital investment 246:industrial economy 196:economies of scale 221:African countries 102:capital intensity 87: 86: 79: 16:(Redirected from 442: 414: 413: 404: 398: 397: 395: 394: 379: 373: 372: 370: 369: 355: 346: 345: 343: 342: 328: 322: 321: 319: 318: 303: 141:economy of scale 82: 75: 71: 68: 62: 57:this article by 48:inline citations 35: 34: 27: 21: 18:Labour-intensive 450: 449: 445: 444: 443: 441: 440: 439: 420: 419: 418: 417: 406: 405: 401: 392: 390: 381: 380: 376: 367: 365: 357: 356: 349: 340: 338: 330: 329: 325: 316: 314: 305: 304: 300: 295: 266: 209: 117: 90:Labor intensity 83: 72: 66: 63: 53:Please help to 52: 36: 32: 23: 22: 15: 12: 11: 5: 448: 446: 438: 437: 432: 422: 421: 416: 415: 399: 387:indexmundi.com 374: 347: 323: 306:Kenton, Will. 297: 296: 294: 291: 277: 276: 273: 265: 262: 248:without heavy 208: 205: 204: 203: 192:Niche products 189: 184: 179: 169: 164: 116: 113: 85: 84: 39: 37: 30: 24: 14: 13: 10: 9: 6: 4: 3: 2: 447: 436: 433: 431: 428: 427: 425: 411: 410: 403: 400: 388: 384: 378: 375: 364: 360: 354: 352: 348: 337: 333: 327: 324: 313: 309: 302: 299: 292: 290: 287: 284: 280: 274: 271: 270: 269: 263: 261: 258: 253: 251: 247: 242: 240: 236: 232: 231:manufacturing 228: 224: 222: 218: 214: 206: 201: 197: 193: 190: 188: 185: 183: 180: 177: 176:fruit picking 173: 170: 168: 165: 163: 160: 159: 158: 155: 151: 149: 144: 142: 138: 134: 130: 129:capital costs 126: 122: 114: 112: 110: 105: 103: 99: 96:(compared to 95: 91: 81: 78: 70: 60: 56: 50: 49: 43: 38: 29: 28: 19: 408: 402: 391:. Retrieved 386: 377: 366:. Retrieved 363:china.org.cn 362: 339:. Retrieved 335: 326: 315:. Retrieved 312:Investopedia 311: 301: 288: 285: 281: 278: 267: 254: 243: 225: 210: 156: 152: 145: 121:manual labor 118: 106: 89: 88: 73: 64: 45: 389:(in French) 264:Measurement 257:exportation 200:fixed costs 172:Agriculture 125:labor costs 59:introducing 424:Categories 393:2020-04-25 368:2020-04-25 341:2020-04-25 317:2020-04-25 293:References 255:Moreover, 198:and lower 42:references 148:inflation 67:June 2020 182:Teaching 167:Textiles 133:expenses 412:. 1968. 162:Nursing 98:capital 55:improve 187:Mining 44:, but 227:China 94:labor 211:For 426:: 385:. 361:. 350:^ 334:. 310:. 252:. 241:. 174:: 396:. 371:. 344:. 320:. 80:) 74:( 69:) 65:( 51:. 20:)

Index

Labour-intensive
references
inline citations
improve
introducing
Learn how and when to remove this message
labor
capital
capital intensity
Industrial Revolution
manual labor
labor costs
capital costs
expenses
automobile industry
economy of scale
inflation
Nursing
Textiles
Agriculture
fruit picking
Teaching
Mining
Niche products
economies of scale
fixed costs
underdeveloped and developing
economic development
African countries
China

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