As a resident of a former communist country I can tell you, from my country experience, that labor is definitely not enough to create any value. You need two other things:

1. Savings which you can use as a capital to improve the efficiency of labor - think buying tools before you start working.

2. Proper organization of work, which is the task of entrepreneurs. Without them people can work hard and produce no value at all. It happens everywhere in the world today, where some bureaucrats get the power to decide what people should do. It happened a lot in all communist countries, where large parts of people's effort were under their control.

If people's labor was everything you need to create value, then why are people in North Korea starving? Do you suggest that they don't work hard enough?