Productivity and Costs by Industry: Wholesale Trade and Retail Trade News Release

For release 10:00 a.m. (ET) Thursday, May 30, 2024                                        USDL-24-1066

Technical Information: (202) 691-5606  •  productivity@bls.gov  •  www.bls.gov/productivity 
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PRODUCTIVITY AND COSTS BY INDUSTRY 
WHOLESALE TRADE AND RETAIL TRADE INDUSTRIES -- 2023

Labor productivity declined 1.6 percent in wholesale trade and rose 1.6 percent in retail trade in 2023, 
the U.S. Bureau of Labor Statistics reported today. In wholesale trade, productivity decreased for a 
second year in a row after growing annually since 2011. Wholesale trade output grew a modest 0.4 
percent with hours worked growing at a higher rate of 2.1 percent. Retail trade productivity rebounded 
in 2023 after having declined in 2022. Retail trade output rose 1.6 percent while hours declined 0.1 
percent. Unit labor costs, which reflect the total labor costs required to produce a unit of output, rose 
6.4 percent in wholesale trade and 0.5 percent in retail trade. 

The ten largest, four-digit NAICS industries by number of workers represent 57.8 percent of all workers 
in the wholesale and retail trade sector. Among these ten industries, productivity growth was greatest in 
clothing stores (+6.3 percent) after falling slightly in the previous year. Both gasoline stations and 
department stores posted significant productivity declines (-7.5 percent each). 

Labor Productivity Rose in Over Half of the Three-Digit NAICS Industries in 2023

Productivity increased in 9 of the 15 three-digit NAICS industries in 2023. (See table 1.) The industries 
with double-digit gains were nonstore retailers (+12.3 percent) and electronics and appliance stores 
(+10.2 percent). Furniture and home furnishings stores had a small productivity gain (+0.3 percent) as 
declines of over seven percent in both output and hours worked balanced out. Gasoline stations (-7.5 
percent) and general merchandise stores (-5.9 percent) had the largest productivity declines
In wholesale trade, productivity fell 1.6 percent as output growth (+0.4 percent) was slower than 
growth in hours worked (+2.1 percent).
• Productivity increased in only 7 of the 19 four-digit NAICS wholesale trade industries while 
output rose in 6 industries and hours worked grew in 14.
• Productivity fell 3.2 percent in durable goods wholesalers and fell 0.6 percent in nondurable 
goods wholesalers.
• The highest increase in productivity occurred in motor vehicle and parts merchant wholesalers 
(+7.1 percent) as output rose at a faster rate (+8.4 percent) than hours worked (+1.2 percent) 
leading to 3 years in a row of growth for all three measures.

In retail trade, productivity increased 1.6 percent as output increased (+1.6 percent) and hours worked 
declined slightly (-0.1 percent).
• Productivity increased in 14 of the 27 four-digit NAICS retail trade industries while output grew 
in 11 industries and hours worked rose in 13. 
• The largest productivity increase of 14.2 percent occurred in electronic shopping and mail-order 
houses as output increased 10.2 percent while hours fell 3.5 percent. This industry has shown 
positive productivity growth for nine consecutive years.
• In other general merchandise stores (the second largest retail employer), productivity dropped (-6.0
percent) for only the second time since the beginning of the series in 1987. Output in other 
general merchandise stores shifted down 1.4 percent, and hours climbed 4.9 percent after falling 
the year before.

Unit Labor Costs Rise in Most Trade Industries in 2023

When hourly compensation outpaces productivity gains, unit labor costs grow. 
• Unit labor costs rose in 10 of 15 three-digit NAICS wholesale and retail trade industries in 2023.
• The largest decrease in unit labor costs occurred in nonstore retailers (-8.6 percent) in which 
productivity grew (+12.3 percent) over four times the rate of hourly compensation (+2.7 
percent). 
• Among four-digit NAICS arunit labor costs rose in 16 of 19 wholesale trade industries, 
and in 20 of 27 retail trade industries.
• Hourly compensation rose in 38 of the 46 four-digit NAICS industries.

2019 to 2023 Trends

Output increased in 26 of the 46 four-digit trade industries from 2019 to 2023. (See table 3.) 
Note that the annual percent changes for periods of more than 1 year are annualized average rates of 
change over the entire period, or a compound annual growth rate. The two industries with the highest 
increases during that period were electronic shopping and mail-order houses (+15.2 percent per year) 
and druggists' goods merchant wholesalers (+7.1 percent). Vending machine operators experienced the 
steepest annual declines in output during this period (-6.4 percent).

Hours worked increased in 23 of the 46 four-digit trade industries from 2019 to 2023. The two industries 
with the largest decreases in hours worked over the 4 years were jewelry, luggage, and leather goods 
stores (-7.3 percent per year) and direct selling establishments (-6.0 percent). The industry with the 
largest increase in hours worked was lawn and garden equipment and supplies stores (+2.5 percent).

Long-term Labor Productivity Increases in All but One Industry

From 1987 to 2023, labor productivity increased 2.4 percent per year in wholesale trade and 3.1 
percent per year in retail trade. (See table 2.)
• Among the 46 four-digit NAICS industries, productivity rose in all but one industry--metal and 
mineral merchant wholesalers. 
• Of the 45 four-digit NAICS industries with increasing productivity growth, output rose in 38. 
Hours worked increased in 19.
• Median productivity among four-digit NAICS industries grew at an annual rate of 1.9 percent.
• Among subperiods, productivity growth in the wholesale nondurable and retail trade industries 
was slower from 2007 to 2019 than during the periods preceding and following. The slowest 
productivity for wholesale durable goods occurred over the 2019-23 period. The productivity 
growth in retail trade was fastest in the 2019-23 period but was highest for both wholesale goods 
industries in the 1987-2007 period.
• Productivity grew in 43 of the 46 four-digit NAICS industries during the 1987-2007 period. The 
number of industries with productivity growth fell to 34 from 2007 to 2019 and then remained at 
34 from 2019 to 2023.

Long-term Trends in Unit Labor Costs Vary by Sector

From 1987 to 2023, unit labor costs increased 1.5 percent per year in wholesale trade and 0.2 percent 
per year in retail trade. (See table 2.)
• Among the 46 four-digit NAICS industries, unit labor costs rose in 17 of 19 wholesale trade 
industries and 14 of 27 retail trade industries from 1987 to 2023. 
• Across sub-periods, unit labor costs rose in 29 industries in 1987-2007, 34 industries in 2007-19, 
and 38 industries in 2019-23. 
• In all three periods, unit labor costs remained positive for wholesale nondurable goods. After 
decreasing unit labor costs from 1987-2007, wholesale durable goods unit labor costs increased 
for both the 2007-19 and 2019-23 periods. In retail trade, unit labor costs were slightly negative 
from 1987 to 2007, were unchanged from 2007 to 2019, and rose 2.0 percent per year from 2019 
to 2023.

Additional Information

The trade measures in this release incorporate benchmark data from the Census Bureau’s Annual 
Wholesale Trade Report (January 2024), Monthly Wholesale Trade Survey (February 2024), Annual 
Retail Trade Survey (January 2024), Monthly Retail Trade Survey (February 2024), and Nonemployer 
Statistics (March 2024) with the National Income and Product Accounts (March 2024) from the Bureau 
of Economic Analysis. Accordingly, the labor productivity and output series for all industries have been 
revised for 2022 and earlier years. Additionally, the unit labor cost measures incorporate preliminary 
data from the BLS Quarterly Census of Employment and Wages (March 2024). 

Measures of hours worked for all industries reflect a change in methods and are revised historically. 
Estimates of hours worked by self-employed workers and unpaid family workers reflect a method 
change that makes industry-level estimates consistent with the newly composited quarterly major sector 
estimates that remove variability during seasonal adjustment and reduce volatility in these workers. A 
more detailed discussion of the changes is available in the Monthly Labor Review at 
www.bls.gov/opub/mlr/2023/article/an-improved-estimate-of-self-employmenthours.htm.

More information about the North American Industry Classification System (NAICS) can be found at 
www.census.gov/naics/.

Access the productivity data dashboard at www.bls.gov/productivity/tables/labor-productivity-detailed-
industries.xlsx for
• Additional industries and sectors
• Detailed data series: indexes of productivity and related measures; rates of change; and levels of 
industry employment, hours worked, nominal value of production, and labor compensation 
• Additional years and long-term data

Subscribe to productivity news releases on the BLS website at 
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Technical Note

Labor Productivity: Labor productivity describes the relationship between output and the labor hours 
involved in its production. These measures show the changes from period to period in the amount of 
goods and services produced per hour worked. Although the labor productivity measures relate real 
output in an industry to hours worked of all persons in that industry, they do not measure the specific 
contribution of labor to growth in output. Rather, they reflect the joint effects of many influences, 
including: changes in technology; capital investment; utilization of capacity, energy, and materials; the 
use of purchased services inputs, including contract employment services; the organization of 
production; the characteristics and effort of the workforce; and managerial skill. 

Unit Labor Costs: Unit labor costs represent the cost of labor required to produce one unit of output. 
The unit labor cost indexes are computed by dividing an index of nominal industry labor compensation 
by an index of real industry output. Unit labor costs also describe the relationship between compensation 
per hour worked (hourly compensation) and real output per hour worked (labor productivity). When 
hourly compensation growth outpaces productivity, unit labor costs increase. Alternatively, when 
productivity growth exceeds hourly compensation, unit labor costs decrease. 

Output: Industry output is measured as an annual-weighted index of the changes in the various products 
(in real terms) provided for sale outside the industry. Real industry output for data in this release is 
derived by deflating nominal sales or values of production using price indexes. Industry output measures 
are constructed primarily using U.S. Census Bureau data from the economic censuses and annual 
surveys along with U.S. Bureau of Economic Analysis National Income and Product Accounts reported 
revenues and prices, together with information on price changes from BLS. 

Labor Hours: Labor hours are measured as annual hours worked by all workers in an industry. All 
workers include the sum of BLS Current Employment Statistics (CES) data on the number of jobs held 
by wage and salary workers in nonfarm establishments and Current Population Survey (CPS) data on the 
number of self-employed and unpaid family workers. Labor hours for wage and salary workers are 
estimated using CES data on hours paid of all employees. Paid hours are adjusted to an hours worked 
concept using ratios of hours worked to hours paid based on data from the National Compensation 
Survey (NCS) and off-the-clock hours incorporated from CPS data. Hours worked of self-employed and 
unpaid family workers are directly from the CPS. For some industries, employment and hours data are 
supplemented or further disaggregated using data from the BLS Quarterly Census of Employment and 
Wages (QCEW), the Census Bureau, or other sources. Hours worked are estimated separately for 
different types of workers and then are directly aggregated; no adjustments for labor composition are 
made.

Labor Compensation: Labor compensation, defined as payroll plus supplemental payments, is a 
measure of the cost to the employer of securing the services of labor. Payroll includes salaries, wages, 
commissions, dismissal pay, bonuses, vacation and sick leave pay, and compensation in kind. 
Supplemental payments include both legally required expenditures and payments for voluntary 
programs. The legally required portion consists primarily of federal old age and survivors’ insurance, 
unemployment compensation, and workers’ compensation. Payments for voluntary programs include all 
programs not specifically required by legislation, such as the employer portion of private health 
insurance and pension plans. Industry compensation measures are constructed primarily using data from 
the BLS QCEW and the economic censuses of the Census Bureau at the U.S. Department of Commerce.

Annual Percent Change: The annual percent change is the change in a series from one year to the next 
as a percent of the series value in the previous year. Over a period of more than one year, the annual 
percent change is the compound annual growth rate in an index series, or an annualized average growth 
rate. Because the change of an index series varies from year to year, the annual percent change for a 
long time period reflects the constant rate that can be applied to each year in a period, from the start to 
the end, that would give the same total result. It is calculated as (Ending Value/Starting 
Value)^(1/Number of Years)-1.

 

	
Table 3. Labor productivity, unit labor costs, and related data, 2019-2023

		

			
Industry
			
2017 NAICS code
			
2023
Employment
(thousands)
			
Annual percent change, 2019-2023
		
		

			
Labor productivity
			
Unit labor costs
			
Output
			
Hours
worked
			
Labor compen-
sation
			
Hourly compen-
sation
		
	
	

		

			
Wholesale trade
			
42
			
6,222.4
			
0.5
			
5.2
			
1.0
			
0.5
			
6.2
			
5.7
		
		

	


		

			
Merchant wholesalers, durable goods
			
423
			
3,450.3
			
1.1
			
4.7
			
2.0
			
0.9
			
6.8
			
5.8
		
		

			
Motor vehicles and parts
			
4231
			
387.3
			
2.9
			
3.2
			
3.9
			
0.9
			
7.2
			
6.2
		
		

			
Furniture and furnishings
			
4232
			
116.9
			
0.5
			
4.2
			
-1.0
			
-1.5
			
3.2
			
4.7
		
		

			
Lumber and construction supplies
			
4233
			
265.6
			
-0.6
			
6.4
			
0.6
			
1.3
			
7.1
			
5.7
		
		

			
Commercial equipment
			
4234
			
754.7
			
0.1
			
5.2
			
1.6
			
1.5
			
6.9
			
5.3
		
		

			
Metals and minerals
			
4235
			
135.5
			
0.1
			
7.5
			
-1.9
			
-2.0
			
5.4
			
7.6
		
		

			
Appliances and electric goods
			
4236
			
375.3
			
3.1
			
2.6
			
3.3
			
0.3
			
6.0
			
5.7
		
		

			
Hardware and plumbing
			
4237
			
315.8
			
0.4
			
6.8
			
1.7
			
1.3
			
8.6
			
7.2
		
		

			
Machinery and supplies
			
4238
			
764.9
			
0.0
			
5.6
			
1.1
			
1.2
			
6.8
			
5.6
		
		

			
Miscellaneous durable goods
			
4239
			
334.3
			
0.9
			
4.7
			
2.2
			
1.2
			
7.0
			
5.7
		
		

	


		

			
Merchant wholesalers, nondurable goods
			
424
			
2,253.4
			
0.8
			
5.0
			
0.7
			
-0.1
			
5.7
			
5.8
		
		

			
Paper and paper products
			
4241
			
116.7
			
1.2
			
7.1
			
-3.9
			
-5.0
			
2.9
			
8.4
		
		

			
Druggists' goods
			
4242
			
262.3
			
5.0
			
0.9
			
7.1
			
2.1
			
8.1
			
5.9
		
		

			
Apparel and piece goods
			
4243
			
159.0
			
-5.2
			
8.6
			
-4.3
			
1.0
			
3.9
			
3.0
		
		

			
Grocery and related products
			
4244
			
829.2
			
-0.2
			
6.3
			
0.0
			
0.1
			
6.3
			
6.1
		
		

			
Farm product raw materials
			
4245
			
74.2
			
-1.5
			
5.9
			
-0.4
			
1.1
			
5.5
			
4.4
		
		

			
Chemicals
			
4246
			
154.2
			
1.1
			
4.9
			
-0.5
			
-1.5
			
4.4
			
6.0
		
		

			
Petroleum
			
4247
			
106.2
			
-2.3
			
5.9
			
-1.3
			
1.0
			
4.5
			
3.5
		
		

			
Alcoholic beverages
			
4248
			
216.7
			
2.0
			
2.2
			
1.7
			
-0.3
			
3.9
			
4.2
		
		

			
Miscellaneous nondurable goods
			
4249
			
334.9
			
-0.7
			
7.1
			
-1.4
			
-0.8
			
5.6
			
6.4
		
		

	


		

			
Electronic markets and agents and brokers
			
425
			
518.7
			
-3.5
			
8.4
			
-3.4
			
0.1
			
4.7
			
4.7
		
		

			
Electronic markets and agents and brokers
			
4251
			
518.7
			
-3.5
			
8.4
			
-3.4
			
0.1
			
4.7
			
4.7
		
		

	


		

			
Retail trade
			
44-45
			
16,391.5
			
3.8
			
2.0
			
3.1
			
-0.6
			
5.2
			
5.8
		
		

	


		

			
Motor vehicle and parts dealers
			
441
			
2,095.3
			
0.6
			
5.8
			
0.3
			
-0.3
			
6.2
			
6.5
		
		

			
Automobile dealers
			
4411
			
1,313.2
			
0.5
			
7.0
			
-0.1
			
-0.6
			
6.9
			
7.6
		
		

			
Other motor vehicle dealers
			
4412
			
180.0
			
1.7
			
2.4
			
2.5
			
0.8
			
4.9
			
4.1
		
		

			
Auto parts, accessories, and tire stores
			
4413
			
602.1
			
2.8
			
0.7
			
3.0
			
0.2
			
3.7
			
3.5
		
		

	


		

			
Furniture and home furnishings stores
			
442
			
448.9
			
1.4
			
4.6
			
-1.5
			
-2.8
			
3.1
			
6.1
		
		

			
Furniture stores
			
4421
			
221.1
			
1.7
			
2.8
			
-0.5
			
-2.1
			
2.3
			
4.5
		
		

			
Home furnishings stores
			
4422
			
227.8
			
1.0
			
6.9
			
-2.7
			
-3.6
			
4.0
			
7.9
		
		

	


		

			
Electronics and appliance stores
			
443
			
428.2
			
6.9
			
-0.8
			
2.7
			
-3.9
			
1.9
			
6.1
		
		

			
Electronics and appliance stores
			
4431
			
428.2
			
6.9
			
-0.8
			
2.7
			
-3.9
			
1.9
			
6.1
		
		

	


		

			
Building material and garden supply stores
			
444
			
1,441.7
			
0.5
			
4.5
			
0.9
			
0.3
			
5.4
			
5.1
		
		

			
Building material and supplies dealers
			
4441
			
1,242.6
			
0.4
			
5.0
			
0.3
			
0.0
			
5.3
			
5.3
		
		

			
Lawn and garden equipment and supplies stores
			
4442
			
199.1
			
1.8
			
1.8
			
4.4
			
2.5
			
6.3
			
3.7
		
		

	


		

			
Food and beverage stores
			
445
			
3,259.7
			
1.0
			
4.7
			
1.2
			
0.1
			
5.9
			
5.8
		
		

			
Grocery stores
			
4451
			
2,810.4
			
1.0
			
4.8
			
1.0
			
0.0
			
5.9
			
5.8
		
		

			
Specialty food stores
			
4452
			
248.1
			
-1.0
			
6.9
			
-0.7
			
0.3
			
6.2
			
5.9
		
		

			
Beer, wine and liquor stores
			
4453
			
201.2
			
2.0
			
2.5
			
3.5
			
1.4
			
6.1
			
4.6
		
		

	


		

			
Health and personal care stores
			
446
			
1,100.5
			
4.9
			
-1.3
			
4.2
			
-0.7
			
2.8
			
3.6
		
		

			
Health and personal care stores
			
4461
			
1,100.5
			
4.9
			
-1.3
			
4.2
			
-0.7
			
2.8
			
3.6
		
		

	


		

			
Gasoline stations
			
447
			
995.5
			
-2.3
			
8.7
			
-1.1
			
1.2
			
7.4
			
6.2
		
		

			
Gasoline stations
			
4471
			
995.5
			
-2.3
			
8.7
			
-1.1
			
1.2
			
7.4
			
6.2
		
		

	


		

			
Clothing and clothing accessories stores
			
448
			
1,173.8
			
7.6
			
-1.0
			
2.5
			
-4.7
			
1.5
			
6.6
		
		

			
Clothing stores
			
4481
			
859.6
			
7.1
			
-0.7
			
2.6
			
-4.2
			
1.9
			
6.4
		
		

			
Shoe stores
			
4482
			
175.2
			
4.4
			
2.3
			
-0.5
			
-4.7
			
1.8
			
6.8
		
		

			
Jewelry, luggage, and leather goods stores
			
4483
			
139.0
			
13.4
			
-4.9
			
5.1
			
-7.3
			
0.0
			
7.9
		
		

	


		

			
Sports, hobby, music instruments, book stores
			
451
			
611.1
			
5.9
			
0.8
			
4.5
			
-1.4
			
5.3
			
6.7
		
		

			
Sporting goods and musical instrument stores
			
4511
			
540.1
			
6.7
			
0.5
			
5.3
			
-1.2
			
5.9
			
7.2
		
		

			
Book stores and news dealers
			
4512
			
71.0
			
-0.6
			
4.0
			
-2.7
			
-2.2
			
1.1
			
3.3
		
		

	


		

			
General merchandise stores
			
452
			
3,164.5
			
1.6
			
2.5
			
1.7
			
0.1
			
4.2
			
4.1
		
		

			
Department stores
			
4522
			
955.0
			
1.6
			
1.7
			
-1.7
			
-3.3
			
0.0
			
3.4
		
		

			
Other general merchandise stores
			
4523
			
2,209.5
			
0.7
			
3.5
			
2.4
			
1.7
			
6.0
			
4.3
		
		

	


		

			
Miscellaneous store retailers
			
453
			
956.4
			
6.1
			
0.2
			
4.4
			
-1.6
			
4.7
			
6.4
		
		

			
Florists
			
4531
			
85.1
			
3.3
			
0.7
			
5.2
			
1.8
			
5.9
			
4.0
		
		

			
Office supplies, stationery and gift stores
			
4532
			
220.3
			
2.4
			
2.5
			
-2.5
			
-4.8
			
0.0
			
5.0
		
		

			
Used merchandise stores
			
4533
			
244.3
			
4.4
			
-0.1
			
6.6
			
2.2
			
6.5
			
4.3
		
		

			
Other miscellaneous store retailers
			
4539
			
406.7
			
8.9
			
-0.1
			
6.1
			
-2.5
			
6.0
			
8.7
		
		

	


		

			
Nonstore retailers
			
454
			
715.9
			
14.2
			
-4.6
			
13.7
			
-0.5
			
8.5
			
9.0
		
		

			
Electronic shopping and mail-order houses
			
4541
			
495.5
			
12.7
			
-3.9
			
15.2
			
2.2
			
10.7
			
8.4
		
		

			
Vending machine operators
			
4542
			
45.0
			
-2.9
			
7.7
			
-6.4
			
-3.6
			
0.8
			
4.5
		
		

			
Direct selling establishments
			
4543
			
175.4
			
8.5
			
-0.8
			
2.0
			
-6.0
			
1.2
			
7.6