Advantages of labour intensive technology

  • High employment in the shortrun for both the skilled and unskilled workers.
  • High levels of output per capita/per person.
  • It leads to fair income distributions where the majority have some considers access to income earnings.
  • This production technique helps to minimize rural urban migration, since it even be rural based.
  • It widens the tax base of the country.
  • Labour intensive technology helps in the exploitation of the locally available resources that may lead to rural industrialization and transformation.
  • It is cheap to develop and affordable by most LDCs.
  • It is easy to use since it does not require a lot in terms of complex skills.
  • It saves the country's foreign exchange expenditure, since it is less dependent on foreign resources.