A labor-intensive industry requires large amounts of manual labor to produce its goods or services.
Labor intensity is measured by its proportion[clarification needed] to the amount of capital to produce goods or services.
[3] For countries which are not wealthy and generate low levels of income, labor-intensive industries can bring economic growth and prosperity.
China has a large workforce, and manufacturing industries contribute about 35 per cent to the country's gross domestic product.
In this way, underdeveloped countries can improve their industrial economy without heavy capital investment.
These exports help the economies by earning foreign exchange, which can be used to import essential goods and services.