You're right, labor does create value but I rather agree with it from Adam Smith's perspective. Value of labor can't exist without the free market, there is demand for things in the free market and of course those things require labor. It all depends of what exactly is in demand, if people want a thing then it has value, if a thing isn't something that a lot of people want then the labor put into it doesn't determine the value alone. I can name an example of something with more labor put into it having more value, cheese at the grocery store, a bunch of sliced cheese is more expensive than a whole block because labor of slicing it made it more expensive and people don't like to do the labor of slicing it themselves and the slicing machine and the employee operating it slice it thin enough for sandwiches.