- Labour intensive means use of manpower in production with little of technology while capital intensive means use of technology in production of a unit of output.
- Labour refers to the people required to carry out a process.
- Labour-intensive processes are those that require a relatively high level of labour compared to capital investment.
- Labour extensive means use of equipment, machinery and vehicles.
- Capital-intensive processes are those that require a relatively high level of capital investment compared to the labour cost.
- These processes are more likely to be highly automated and to be used to produce on a large scale.