Labor intensity | labor intensive
FromWikipedia,thefreeencyclopediaLaborintensityistherelativeproportionoflabor(comparedtocapital)usedinanygivenprocess.Itsinverseiscapitalintensity.LaborintensityhasbeendecliningsincetheonsetoftheIndustrialRevolutioninthelate1700s,whileitsinverse,capitalintensity,hasincreasednearlyexponentiallysincethelatterhalfofthe20thcentury.Labor-intensiveindustries[edit]Alabor-intensiveindustryrequireslargeamountsofmanuallabortoproduceitsgoodsorservices.Insuchindustries,laborcostsaremoreofaconcernthancap...
From Wikipedia, the free encyclopedia
Labor intensity is the relative proportion of labor (compared to capital) used in any given process. Its inverse is capital intensity.
Labor intensity has been declining since the onset of the Industrial Revolution in the late 1700s, while its inverse, capital intensity, has increased nearly exponentially since the latter half of the 20th century.
Labor-intensive industries[edit]A labor-intensive industry requires large amounts of manual labor to produce its goods or services. In such industries, labor costs are more of a concern than capital costs. 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 expenses, labor intensive businesses have an advantage over those that...