Labor intensive is a method of production which requires a large number of workers, as opposed to capital intensive processes which employ a high level of technology as well as tractors, machinery, computers, and other capital investments. It is usually used when the labor costs are relatively low compared to the capital costs, and the goal is to produce a large quantity of products with a lower labor cost. Furthermore, labor-intensive industries are generally labor-based, meaning they rely heavily on the effort of people as opposed to machines.

In labor-intensive industries, labor costs will include wages for hourly and part-time employees, purchasing benefits such as insurance and pension plans, hiring costs, and salaries for supervisory and management staff. The cost of the labor force can vary based upon the geographical location, skill level of the workforce, type of industry, and size of the organization. Furthermore, labor intensive processes generally require ongoing training and development which must be factored into the overall cost and any other associated costs such as licensing fees and union dues.

Labor-intensive industries have become increasingly important in the global economy. Businesses in these industries have been able to capture cost advantages associated with the economies of scale and pooling of resources, meaning businesses can produce goods or services more efficiently. These cost advantages have allowed labor-intensive businesses to become competitive with capital-intensive companies on a global level. Likewise, advantages associated with a large labor force have allowed businesses to keep up with rapidly-changing consumer demands and needs.

In addition to cost savings and increased flexibility, labor-intensive industries also come with a number of other benefits. Businesses in this sector generally employ a great number of people, providing jobs to an often underserved segment of the population. Furthermore, labor-intensive industries are generally more resistant to automation, so they are more sustainable and less likely to be replaced by robotic alternatives.

Overall, labor-intensive industries have become increasingly important in the global economy. They provide businesses with significant cost savings, increased flexibility and stability, and a beneficial social impact. These advantages have made labor-intensive industries more attractive for businesses, as well as creating opportunities for more efficient production and more job opportunities for the local population.