The .gov means it's official. Federal government websites often end in .gov or .mil. Before sharing sensitive information,
make sure you're on a federal government site.
The site is secure. The
https:// ensures that you are connecting to the official website and that any
information you provide is encrypted and transmitted securely.
Productivity and Costs by Industry: Wholesale Trade, Retail Trade, and Food Services and Drinking Places, 2015 News Release
For release 10:00 a.m. (EDT) Wednesday, August 10, 2016 USDL-16-1654
Technical Information: (202) 691-5618 • productivity@bls.gov • www.bls.gov/lpc
Media Contact: (202) 691-5902 • PressOffice@bls.gov
PRODUCTIVITY AND COSTS BY INDUSTRY: WHOLESALE TRADE,
RETAIL TRADE, AND FOOD SERVICES AND DRINKING PLACES INDUSTRIES - 2015
Labor productivity rose 1.6 percent in wholesale trade, 3.0 percent in retail trade, and 1.8 percent in
food services and drinking places in 2015, the U.S. Bureau of Labor Statistics reported today. Unit
labor costs, which reflect the total labor costs required to produce a unit of output, also rose in all three
industry groups.
For wholesale trade in 2015 - productivity, output, and hours worked all increased at a slower rate than
in 2014. In retail trade, the growth in output was more than double the growth in hours worked leading
to a bigger productivity increase in 2015 than in 2014. Productivity growth in food services and drinking
places in 2015 surpassed that of 2014 as increased output exceeded an increase in hours worked.
Among the largest industries, productivity growth was greatest in building material and supplies dealers
where output outpaced a slight increase in hours worked. Productivity fell the most in special food
services where growth in hours worked outpaced an increase in output.
Trends in Labor Productivity in 2015
Productivity increased in 14 of the 16 3-digit NAICS industries studied in 2015. Four industries had
productivity gains of at least 4.0 percent. Nonstore retailers, which includes electronic shopping and
mail-order houses, had the largest increase in output (10.0 percent).
Productivity increased in 33 of the 49 4-digit NAICS industries studied in 2015. Output grew in 42
industries while hours worked grew in 31 industries.
In wholesale trade, productivity rose 1.6 percent as output grew 2.5 percent and hours worked increased
0.9 percent.
* Productivity grew 0.3 percent in durable goods wholesalers and 3.3 percent in nondurable goods
wholesalers.
* Productivity increased in 13 of the 19 4-digit wholesale trade industries while output rose in 16
industries and hours worked grew in 13.
* Productivity increased most rapidly in miscellaneous nondurable goods and in paper and paper
products as output increased and hours worked fell in both industries.
In retail trade, productivity grew 3.0 percent as output rose 5.0 percent and hours worked rose 2.0
percent.
* Productivity increased in 19 of the 27 4-digit retail trade industries while output grew in 23
industries and hours worked rose in 15.
* The largest productivity increases were in florists and in book stores and news dealers as output
rose and hours worked declined in both industries.
* The electronic shopping and mail-order houses industry experienced the largest growth in output
(13.3 percent) and recorded a 6.0 percent increase in productivity.
In food services and drinking places, productivity rose 1.8 percent as output grew 5.1 percent and
hours worked rose 3.2 percent. Output and hours worked rose in all three of the 4-digit industries in this
industry group while productivity only increased in restaurants and other eating places.
Trends in Unit Labor Costs in 2015
* When productivity gains outpace hourly compensation, unit labor costs facing employers
decline. Unit labor costs fell in 4 out of 16 3-digit industries in 2015. All unit labor cost
declines occurred in industries where productivity rose.
* Unit labor costs declined in 6 of 19 wholesale trade and 13 of 27 retail trade 4-digit industries.
All three industries in food services and drinking places saw an increase in unit labor costs.
* Hourly compensation, defined as labor compensation per hour worked, rose in 40 of the 49
4-digit industries.
Long-Term Trends in Labor Productivity and Unit Labor Costs
From 1987 to 2015, labor productivity increased at an average annual rate of 2.9 percent in wholesale
trade, 2.8 percent in retail trade, and 0.4 percent in food services and drinking places.
* Among the 4-digit industries, productivity rose in all but three industries from 1987 to 2015.
Median productivity growth among these industries was 2.1 percent per year.
* Over the long term, productivity growth was associated with rising output in 42 out of 49 4-digit
industries while hours worked increased in 26 industries.
* The growth in productivity from 1987 to 2007 far exceeded the growth in productivity from
2007 to 2015 in all three industry groups. Productivity increased in 45 out of 49 4-digit industries
from 1987 to 2007 compared to 28 industries from 2007 to 2015.
From 1987 to 2015, unit labor costs increased at an average annual rate of 3.1 percent in food services
and drinking places, the greatest change within the three industry groups. Unit labor costs increased by
1.0 percent in wholesale trade and were unchanged in retail trade.
* Among the 4-digit industries, unit labor costs fell in 14 out of 49 industries from 1987 to 2015.
Unit labor costs declined in 2 out of 19 wholesale trade and 12 out of 27 retail trade industries
while increasing in all food services and drinking places industries.
* From 2007 to 2015, unit labor costs declined in 13 out of 49 industries. All industries with
declines in unit labor costs experienced increases in productivity.
* Among the 3-digit industries, electronics and appliance stores had the largest unit labor cost
declines and the largest productivity gains during the 1987 to 2007 and 2007 to 2015 periods.
Additional Information
The trade and food services and drinking places measures in this release incorporate benchmark data
from the Census Bureau’s Annual Wholesale Trade Report (February 2016), Monthly Wholesale Trade
Survey (May 2016), Annual Retail Trade Survey (March 2016), Annual Revision of the Monthly Retail
and Food Services: Sales and Inventories (May 2016), and Nonemployer Statistics (May 2016). Data
have been benchmarked to the final results of the 2012 Economic Census. Accordingly, the labor
productivity and output series for all industries have been revised for 2014 and earlier years. This news
release also incorporates the annual benchmark revision of the BLS Current Employment Statistics
(CES) survey published in February 2016. Additionally, the unit labor cost measures incorporate
preliminary data from the BLS Quarterly Census of Employment and Wages (June 2016).
************************************************************************************************************
* Want to know more? *
* *
* Find data at www.bls.gov/lpc 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 *
* *
* Questions? *
* *
* Additional information can be obtained by calling the BLS productivity program at (202) 691-5618 or by *
* sending an email to productivity@bls.gov. Information in this release will be made available to sensory *
* impaired individuals upon request. Voice phone: (202) 691-5200; Federal Relay Service: (800) 877-8339. *
* *
* Subscribe to news releases *
* *
* Subscribe to productivity news releases on the BLS website at *
* https://subscriptions.bls.gov/accounts/USDOLBLS/subscriber/new. *
* *
************************************************************************************************************
Technical Note
Labor Productivity: Labor productivity describes the relationship between real 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 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 data from the economic censuses and annual surveys of the U.S. Census
Bureau, U.S. Department of Commerce, together with information on price changes from BLS.
Labor Hours: Labor hours are measured as annual hours worked by all employed persons in an
industry. Data on industry employment and hours come primarily from the BLS Current Employment
Statistics (CES) survey and Current Population Survey (CPS). CES data on the number of total and
production worker jobs held by wage and salary workers in nonfarm establishments are supplemented
with CPS data on self-employed and unpaid family workers to estimate industry employment. Hours
worked estimates are derived using CES and CPS employment, CES data on the average weekly hours
paid of production workers, CPS data on hours of nonproduction, self-employed, and unpaid family
workers, and ratios of hours worked to hours paid based on data from the National Compensation
Survey (NCS). 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, U.S. Department of Commerce.
Table 1. Recent labor productivity, unit labor costs, and related data
Industry
2012 NAICS code
2015 Employment (thousands)
Percent change, 2014-2015
Labor productivity
Unit labor costs
Output
Hours worked
Labor compensation
Wholesale Trade
Wholesale trade
42
6,015.1
1.6
1.5
2.5
0.9
4.0
Durable goods
423
3,001.6
0.3
2.0
1.4
1.1
3.4
Motor vehicles and parts
4231
336.3
0.8
0.3
3.8
3.0
4.1
Furniture and furnishings
4232
108.7
0.9
3.8
6.3
5.4
10.3
Lumber and construction supplies
4233
213.6
-3.5
2.5
4.9
8.7
7.5
Commercial equipment
4234
626.6
2.2
1.9
1.3
-0.9
3.2
Metals and minerals
4235
129.6
-4.9
3.5
-3.6
1.3
-0.3
Appliances and electric goods
4236
327.4
4.8
-0.8
4.3
-0.5
3.5
Hardware and plumbing
4237
243.6
3.3
1.7
4.2
0.8
5.9
Machinery and supplies
4238
700.8
-5.2
5.5
-2.9
2.5
2.5
Miscellaneous durable goods
4239
315.0
-0.1
5.5
-4.7
-4.6
0.5
Nondurable goods
424
2,104.7
3.3
0.6
3.9
0.5
4.5
Paper and paper products
4241
123.5
7.1
-1.5
3.7
-3.2
2.1
Druggists' goods
4242
199.3
6.9
-1.8
7.7
0.7
5.7
Apparel and piece goods
4243
157.0
-1.4
0.5
2.2
3.7
2.7
Grocery and related products
4244
776.9
-0.2
4.7
1.3
1.5
6.1
Farm product raw materials
4245
77.6
0.7
-0.9
0.9
0.2
0.0
Chemicals
4246
134.0
0.9
-0.9
3.3
2.4
2.3
Petroleum
4247
101.9
1.2
4.9
5.3
4.1
10.5
Alcoholic beverages
4248
189.6
6.1
0.6
3.7
-2.3
4.3
Miscellaneous nondurable goods
4249
344.9
7.4
-4.2
5.3
-2.0
0.9
Electronic markets and agents and brokers
425
908.8
0.6
3.0
2.0
1.4
5.1
Electronic markets and agents and brokers
4251
908.8
0.6
3.0
2.0
1.4
5.1
Retail Trade
Retail trade
44-45
16,507.6
3.0
0.4
5.0
2.0
5.4
Motor vehicle and parts dealers
441
1,999.3
2.4
1.3
6.6
4.1
7.9
Automobile dealers
4411
1,277.8
1.9
1.1
6.9
4.8
8.1
Other motor vehicle dealers
4412
159.7
-3.8
6.2
11.1
15.4
18.0
Auto parts, accessories, and tire stores
4413
561.8
0.7
3.6
0.6
-0.1
4.1
Furniture and home furnishings stores
442
516.7
-1.3
1.7
7.3
8.7
9.1
Furniture stores
4421
238.1
-0.2
0.8
7.8
8.0
8.7
Home furnishings stores
4422
278.6
-2.5
2.7
6.7
9.4
9.6
Electronics and appliance stores
443
544.2
4.9
1.0
9.3
4.2
10.4
Electronics and appliance stores
4431
544.2
4.9
1.0
9.3
4.2
10.4
Building material and garden supply stores
444
1,274.3
5.0
-1.6
5.5
0.5
3.8
Building material and supplies dealers
4441
1,108.5
5.3
-1.8
6.0
0.7
4.1
Lawn and garden equipment and supplies stores
4442
165.8
3.1
-0.9
2.4
-0.7
1.5
Food and beverage stores
445
3,163.2
2.7
1.9
2.7
0.0
4.6
Grocery stores
4451
2,742.3
2.0
2.5
2.6
0.6
5.1
Specialty food stores
4452
254.1
6.5
-0.9
2.6
-3.6
1.7
Beer, wine and liquor stores
4453
166.8
8.5
-3.3
4.2
-3.9
0.8
Health and personal care stores
446
1,076.7
0.5
1.8
1.4
0.9
3.2
Health and personal care stores
4461
1,076.7
0.5
1.8
1.4
0.9
3.2
Gasoline stations
447
920.2
-0.1
2.4
4.5
4.6
7.0
Gasoline stations
4471
920.2
-0.1
2.4
4.5
4.6
7.0
Clothing and clothing accessories stores
448
1,451.4
3.3
-1.8
3.1
-0.2
1.2
Clothing stores
4481
1,063.5
4.7
-1.5
4.6
-0.1
3.1
Shoe stores
4482
215.8
-6.1
3.6
0.1
6.6
3.7
Jewelry, luggage, and leather goods stores
4483
172.1
5.6
-4.1
-2.1
-7.3
-6.1
Sports, hobby, music instruments, book stores
451
698.6
4.7
-1.6
8.2
3.4
6.5
Sporting goods and musical instrument stores
4511
605.6
4.1
-1.3
8.9
4.6
7.4
Book stores and news dealers
4512
93.0
9.1
-3.2
4.6
-4.1
1.3
General merchandise stores
452
3,153.4
1.6
0.3
2.7
1.1
3.1
Department stores
4521
1,329.7
1.2
3.0
-0.5
-1.6
2.5
Other general merchandise stores
4529
1,823.7
0.8
-0.3
3.8
2.9
3.4
Miscellaneous store retailers
453
995.2
0.6
0.3
5.0
4.3
5.3
Florists
4531
84.5
10.0
-10.5
4.4
-5.1
-6.5
Office supplies, stationery and gift stores
4532
302.3
6.4
-2.7
5.6
-0.7
2.8
Used merchandise stores
4533
225.4
-1.8
-3.8
6.4
8.3
2.3
Other miscellaneous store retailers
4539
383.0
-4.0
5.9
4.3
8.6
10.4
Nonstore retailers
454
714.4
9.0
-2.3
10.0
0.9
7.5
Electronic shopping and mail-order houses
4541
424.9
6.0
-1.1
13.3
6.9
12.1
Vending machine operators
4542
45.5
-6.1
23.7
-18.0
-12.6
1.5
Direct selling establishments
4543
244.0
1.9
3.7
-5.2
-6.9
-1.6
Food Services and Drinking Places
Food services and drinking places
722
11,298.4
1.8
3.7
5.1
3.2
9.0
Special food services
7223
799.4
-1.9
12.7
1.2
3.1
14.0
Drinking places, alcoholic beverages
7224
381.7
-1.5
7.6
1.4
3.0
9.2
Restaurants and other eating places
7225
10,117.3
2.4
2.6
5.7
3.3
8.4
Table 2. Long run labor productivity, unit labor costs, and related data
United States Department of Labor
