Labour Intensive

• Labour intensive which uses a relatively high proportion of labour i.e. workers in the production of a good or service
• Labour intensive tends to occur in the tertiary sector of the economy i.e. services
• Often cheaper, especially when produced in low wage locations
• Workforce can easily adapt to change, especially if multi-skilled
• Continuous improvement through the workforce can benefit the firm e.g. new ideas
• Government funding is often available to protect jobs in the economy
• Industrial relations can be a problem e.g. strikes
• Lack of skilled workers in some industries
• HRM costs can be very high e.g. recruitment, selection and training