What does the term 'output per labor hour' most directly measure in the context of labor productivity?

The term 'output per labor hour' measures how much work or goods are produced for every hour that a worker spends on a task. This concept is important because it helps businesses understand how efficiently their employees are working. For example, if a factory produces 100 toys in 10 hours with 5 workers, the output per labor hour would be 2 toys per hour per worker. A higher output per labor hour indicates better productivity, meaning the company can produce more with the same number of workers, which can lead to higher profits. Therefore, businesses use this measure to make decisions about hiring, training, and improving processes to enhance overall performance.