Labor productivity is a significant indicator to measure the sustainable development potential and competitiveness of the construction industry. Under the background of the integration of global construction industry and information and communication technology (ICT), the pursuit of the growth of construction labor productivity (CLP) requires deepened understanding of how these technological advancements characterized by ICT take effect in the change of CLP as well as what the key factors are that led to the variation of CLP at this stage. The paper aims to investigate the effect of ICT progress on CLP and examine the key factors influencing CPL. Based on the data of 31 regions from the China Construction Industry Statistical Yearbook and the Local Statistical Yearbook during the period 2000–2018, this study proposed new methodology (Cobb–Douglas production function, growth rate model, and Malmquist Data Envelopment Analysis) for measuring the technology progress contribution and identified the key factors affecting the change of CLP. The analysis results illustrate that the information technology progress has a significant contribution to CLP growth, but the contribution rate is decreasing with the growing degree of development of the regional construction industry. Three main factors affecting the further improvement of CLP have been identified: human resources, research and development (R&D) investment, and ICT level. The findings can provide the decision-making reference and the general methodology for the local and international industry practitioners to improve the labor productivity performance of the construction sector.