Disadvantages of labour intensive technology

  • Low quality products expected.
  • The technique may discourage foreign investors who are more familiar with capital intensive technology.
  • Labour intensive technology may discourage the development of skills since the technique does not require a lot of skills.
  • At times, labour may require a lot in terms of welfare facilities, trade union agitations in a bid to demand for a higher pay, etc.
  • It may not promote efficiency in the production process, hence discouraging entrepreneurship.