Labor Intensive Project

Labor intensive project is heavily based on labors. Therefore, it is also known as labor based project. It uses different types of work force of society, specially semi-skilled and unskilled manpower to perform the project task. There is very high involvement of labors and they play vital role in success of the project. The main objectives of the implementation of these kinds of project is to generate maximum employment opportunities to all categories of people in society. Thus, it helps to bring social equality and justice by equal distribution of income in society and maintain economic stability in the country. It utilized few technology in the process of project implementation. It requires less capital as compared to capital intensive project. Labor intensive project is more appropriate in those country where there is high availability of manpower, cheap manpower, low capital, low technology development.

Advantage of Labor Intensive Project:
  • It provides high employment opportunities.
  • It helps to maintain economic stability.
  • They are very useful for countries having a vast pool of unemployed labor resources.
  • They create economic stability in the country through employment. People's participation is promoted at local levels.
  • It ensures optimum utilization of scarce resources.
  • The wage differentials are not pronounced so as to bring social equality and justice.
  • Its impact on environment is low.
  • It requires less capital and use indigenous technology.
  • It helps to increase per capita income.
  • It also reduces import.
Disadvantages of Labor Intensive Project:
  • It gives less priority to technology innovation and development due to labor based project.
  • It effects the competitive capacity of the project.
  • It is time consuming that lengthen the project life cycle.
  • It is costly in long run.
  • It is unable to handle complexities.
  • Poor capital formation.
  • It lacks improved and advanced skills.

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