Labor, as a vital element in production input, makes a major contribution to China's economic growth. Rational utilization of labor resources, and raising labor's productivity in accelerating economic growth are always an issue, both actual and theoretical, to be addressed by the government, especially in a changing situation. The paper establishes a theoretic model on the relationship between labor productivity and economic growth, in an attempt to work on theoretical analysis, using contemporary quantitative analysis techniques. Policy suggestions are also proposed in the paper for raising labor productivity in spurring economic growth.