What is meant by labor productivity?

Labor productivity is defined as the amount of output produced per unit of labor input, which is typically measured as the output per worker or output per hour worked. This metric is crucial for understanding the efficiency and effectiveness of labor in the production process. High labor productivity indicates that workers are producing more goods or services in the same amount of time, which can lead to higher wages and improved economic growth.

In contrast, the other options do not accurately capture the concept of labor productivity. The total output of an economy refers to the aggregate value of all goods and services produced, not specifically tied to labor input. The rate of unemployment measures the proportion of the labor force that is jobless, which does not directly relate to how much output is being generated per worker. Similarly, the labor force participation rate indicates the percentage of the working-age population that is either employed or actively seeking employment, but it does not assess productivity in terms of output generated.