Labor productivity measures the efficiency of workers in producing goods and services. It is calculated by dividing the total output by the number of hours worked. Higher labor productivity indicates that workers are producing more in less time, which can lead to increased economic growth and higher wages. Improving labor productivity can result from various factors, such as better training, advanced technology, and improved working conditions. When businesses invest in these areas, they can enhance their workforce's capabilities, leading to greater output and competitiveness in the market.