An increase in labor productivity will always lead to an increase in labor demand, regardless of other economic factors.

An increase in labor productivity means that workers can produce more goods or services in the same amount of time. This higher productivity usually makes companies more profitable, as they can produce more without needing to hire as many new workers. However, it does not always lead to an increase in labor demand because other factors, like the overall economy or changes in technology, also play a role. For example, if a factory becomes more efficient and produces more cars with fewer workers, it may not need to hire more people immediately, especially if demand for cars does not increase. Therefore, while higher productivity often helps, it does not guarantee that companies will always want to hire more workers.