Moreover, there must be greater balance between capital intensive and labor intensive activities.

Labor intensive industries were especially hard hit.

Any service intensive industry faces the same challenges.

The longstanding stagnation in wages for unskilled labor was attributed to low cost, labor intensive imports, ignoring the corollary that Western workers consumption of labor intensive Asian goods offset the effect on real wages.

Yet services offer more than just a labor intensive growth path.

Labor intensive industries in the tradable sector must be allowed to decline.

For example, China s labor intensive export sectors are losing their competitive edge.

But encouraging labor intensive industries, which create jobs for the poor, must not be at the expense of capital intensive industries.

As a result, these labor intensive sectors must release a lot of labor and capital, which push into the capital intensive export sectors that are better able to cope with high wages.

Source Ministry of Industry, Trade and Labor, 2004

And, while military innovation has been spectacular, it is still very labor intensive.

This is because manufactured exports are typically more labor intensive than investment projects.

The Department of Supervision of Labor Laws in the Ministry of Industry, Trade and Labor

Instead, under the new Plan, China will adopt a more labor intensive services model.

As a result, its economic model spawned a labor saving, capital intensive growth dynamic.

Egypt s comparative advantage lies in labor intensive services as opposed to one time products

Expansion of exports of labor intensive manufactures has nonetheless lifted many Chinese out of poverty.

These adverse conditions have inadvertently propelled a long delayed restructuring of China s labor intensive industries.

Moreover, most of the observed growth was generated by capital rather than labor intensive sectors.

Turn to world markets without pro active policies to ensure competence in some modern manufacturing or service industry, and you are likely to remain an impoverished exporter of natural resources and labor intensive products such as garments.

Early high growth economies Japan, South Korea, Taiwan initially exported labor intensive products, then graduated to more capital intensive goods like motor vehicles, and then to human capital intensive activities like design and technology development.

This type of government spending can create labor intensive jobs that will help to stem rising unemployment.

In consumer electronics, for example, low income countries became a natural location for labor intensive assembly processes.

Over time, labor intensive components of value added chains will move away from China s higher income areas.

Developing countries also need access for the unskilled labor intensive services in which they have a comparative advantage.

German firms reacted by outsourcing the labor intensive parts of their production chains and curtailing their investment in Germany.

The zones could combine integrated rural development for domestic consumption and labor intensive manufacturing and agro businesses for export.

Their political freedom was secured by Athens reliance on labor intensive naval warfare against the Persians and other enemies.

While the manufacturing approach served China well for 30 years, its dependence on capital intensive, labor saving productivity enhancement makes it incapable of absorbing the country s massive labor surplus.

The Department of Supervision of Labor Laws of the Ministry of Industry, Trade and Labor supervises the enforcement of a number of labor laws, including the Employment of Women Law.

This turnaround comes despite South Africa s protection of its labor intensive sectors, such as clothing and textiles, through high tariffs.

But the form of agriculture that they practice, which relies less on external inputs and mechanization, is highly labor intensive.

These countries had already lost export market shares to China and other low value added and labor intensive Asian economies.

Yet these five industries combined employ only 14 million people out of a total labor force of 770 million and fewer people than they did a decade ago. For a country in an employment crisis, investing in energy intensive industry is a losing strategy.

In the long run, as labor shortages become acute, China will need to relinquish some low end, labor intensive manufacturing activities, which will translate into decelerating export performance and lower economic growth.

In 1908 the National Child Labor Committee hired Hine, a sociology professor who advocated photography as an educational medium, to document child labor in American industry.

It is unskilled, labor saving technical change that is putting pressure on the wages of workers, whereas imports of cheaper, labor intensive goods from developing countries help the poor who consume these goods.

More than half of all manufactured goods consumed in the US are made abroad, particularly low technology, mass produced labor intensive products.

Why are services so important for China s rebalancing? For starters, services are far more labor intensive than the country s traditional growth sectors.

Georgia s emphasis on labor intensive crops such as tea and grapes kept the rural work force at an unsatisfactory level of productivity.

As a consequence of its welfare state and aggressive unions, Germany has had the highest hourly labor costs in the world for most of the last twenty years only recently has Denmark taken the lead due to a revaluation of the krona. Excessive wages destroy the labor intensive upstream product stages too fast and also impairs other labor intensive sectors like textiles, simple services, tourism, and construction.

Imports of cheap Chinese goods threaten to displace regional production, particularly in labor intensive manufacturing sectors that are finding it difficult to compete.

The expanding scope and diminishing costs of automation and additive manufacturing may affect labor intensive functions globally, including in earlier stage developing countries.

Together with real appreciation, the increase in labor costs is bound to weaken the competitiveness of China s labor intensive export sector, which will be reflected in the trade balance more clearly in the coming years.

Identification of labour intensive products that can participate in intra industry trade is critical, and analyses of value chain potentials are equally important.