We use components but rarely use labels. The reason is that labels are prone to typos such as Web Dev is not the same as Web Development or web dev or web development or webdev, etc. All of those could be labels that get added. And anyone can create a new label. So using Automation or Reporting would be a nightmare.
Converserely, components are only created by Project Administrators and appear in a list of values to select from. Never any typos or multiple entries for the same component. And reporting, filters, automation, etc. is must simpler.
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