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Productivity and Costs: Wholesale Trade, Retail Trade, Food Services, and Drinking Places Industries News Release
For release 10:00 a.m. (EDT) Thursday, August 29, 2013 USDL-13-1773
Technical Information: (202) 691-5618 • dipsweb@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, 2012
Labor productivity - defined as output per hour - rose in wholesale trade and in retail trade but fell
slightly in food services and drinking places in 2012, the U.S. Bureau of Labor Statistics reported today.
Productivity changes were as follows:
2.5 percent in wholesale trade,
2.4 percent in retail trade, and
-0.1 percent in food services and drinking places.
Productivity grew faster in wholesale trade and retail trade in 2012 than in 2011, as output increased at
the same rate as in the previous year for wholesale trade and more rapidly for retail trade, while hours
rose more slowly in both sectors than in 2011. In food services and drinking places, output
and hours both rose more rapidly in 2012 than in 2011, but hours rose faster than output.
Unit labor costs, which reflect the total labor costs required to produce a unit of output, fell in retail
trade but rose in wholesale trade and in food services and drinking places in 2012.
Productivity increased in 33 of the 50 detailed 4-digit NAICS industries in 2012. Output grew in 41
industries and hours increased in 33 industries. Unit labor costs fell in 22 industries in 2012.
In wholesale trade, labor productivity rose 2.5 percent as output grew 3.9 percent and hours increased
1.4 percent. Productivity grew 5.0 percent in durable goods wholesalers and 0.1 percent in nondurable
goods wholesalers. Output per hour increased in 11 of the 19 wholesale trade industries, while output
rose in 15 industries and hours grew in 14. Productivity increased most rapidly in motor vehicles and
parts wholesalers, lumber and construction supplies wholesalers, and metals and minerals wholesalers, as
output rose substantially in each. Unit labor costs declined in 7 industries.
In retail trade, labor productivity grew 2.4 percent as output increased 3.7 percent and hours rose 1.2
percent. Output per hour increased in 19 of the 27 detailed retail trade industries in 2012, as output grew
in 22 industries and hours rose in 16. The largest productivity increases were in home furnishing stores,
where output rose considerably more than hours, in furniture stores, where output rose despite a decline
in hours, and in book, periodical, and music stores, where output fell but hours declined even more. Unit
labor costs fell in 14 industries.
In food services and drinking places, labor productivity declined 0.1 percent, as output grew 4.6
percent and hours rose 4.7 percent. Productivity increased in three of the four detailed industries in this
sector, as output grew in four industries and hours increased in three. Productivity rose most in drinking
places, alcoholic beverages, where output increased and hours fell. Productivity fell in limited-service
eating places, where hours rose more rapidly than output. Unit labor costs rose in three of the industries.
Over the longer term (1987 to 2012), productivity in the wholesale trade, retail trade, and food services
and drinking places sectors advanced more rapidly than in 2012. From 1987 to 2012, output per hour
increased at an average annual rate of 3.0 percent in wholesale trade, 2.8 percent in retail trade, and 0.6
percent in food services and drinking places. During this period unit labor costs rose in wholesale trade
and in food services and drinking places, but were unchanged in retail trade.
Productivity also increased in more trade and food services and drinking places industries over the longer
term than in 2012, with output per hour rising in 47 of the 50 detailed industries from 1987 to 2012. Unit
labor costs fell in 18 of the detailed industries over the period.
Year-to-year movements in industry productivity may be erratic, particularly in smaller industries. The
annual measures based on sample data may differ from measures generated by a census of
establishments in the industry. Annual changes in an industry’s output and use of labor may reflect
cyclical changes in the economy as well as long-term trends. As a result, long-term productivity trends
tend to be more reliable indicators of industry performance than year-to-year changes.
Industry labor productivity measures are updated and revised as new data become available. The latest
industry productivity data for trade and food services and drinking places industries and industries in
other sectors are available on the BLS Labor Productivity and Costs website at www.bls.gov/lpc.
The measures in this news release incorporate preliminary data from the Census Bureau’s Annual
Wholesale Trade Report (March 2013), Monthly Wholesale Trade Survey (May 2013), Annual Retail
Trade Survey (April 2013), and the Annual Revision of the Monthly Retail and Food Services: Sales and
Inventories (May 2013), as well as data from the Census Bureau’s Nonemployer Statistics (May 2013).
The labor productivity and output series for all industries have been revised for 2011 and earlier years as
a result. This news release also incorporates the annual benchmark revision of the BLS Current
Employment Statistics (CES) survey published in February 2013. In addition, the unit labor cost
measures incorporate preliminary data from the BLS Quarterly Census of Employment and Wages (June
2013). All of the measures for 2012 in this release are preliminary and subject to revision.
The industries included in this release are classified according to the 2007 NAICS. While the rates of
change reported by BLS in this news release are rounded to one decimal place, all industry productivity
percent changes are calculated using index numbers rounded to three decimal places.
More detailed data, including indexes, annual rates of change, and levels are available on the Labor
Productivity and Costs website at http://www.bls.gov/lpc/. Additional information can be obtained by
calling the Division of Industry Productivity Studies (202-691-5618) or by sending a request by e-mail
to dipsweb@bls.gov. Information in this report will be made available to sensory-impaired individuals
upon request. Voice phone: 202-691-5618; TDD message referral phone number: 1-800-877-8339.
Customers can subscribe to the industry productivity program’s news releases on the BLS website at
https://subscriptions.bls.gov/accounts/USDOLBLS/subscriber/new.
Technical Note
Labor Productivity: The industry labor productivity measures describe the relationship between
industry output and the labor time involved in its production. They show the changes from period to
period in the amount of goods and services produced per hour. Although the labor productivity measures
relate output to hours of all persons in an industry, they do not measure the specific contribution of labor
or any other factor of production. 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;
managerial skill; and the characteristics and effort of the workforce.
Output: Industry output is measured as an annual-weighted index of the changes in the various products
or services (in real terms) provided for sale outside the industry. Real industry output is derived by
deflating nominal sales using BLS 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 primarily from BLS.
Labor Hours: The primary source of industry employment and hours data is the BLS Current
Employment Statistics (CES) survey. The CES provides monthly data on the number of total and
nonsupervisory worker jobs held by wage and salary workers in nonfarm establishments, as well as data
on the average weekly hours of nonsupervisory workers in those establishments. CES data are
supplemented with data from the Current Population Survey (CPS) to estimate employment and hours
of self-employed and unpaid family workers in each industry. Data from the CPS, together with the
CES data, are also used to estimate the historical average weekly hours of supervisory workers for each
industry. CES and CPS data are supplemented or further disaggregated for some industries using data
from the BLS Quarterly Census of Employment and Wages (QCEW), the Census Bureau, or other
sources. Hours of all persons in an industry are treated as homogeneous and are directly aggregated.
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 industry labor compensation by an
index of real industry output. Unit labor costs also describe the relationship between compensation per
hour and real output per hour (labor productivity). Increases in hourly compensation increase unit labor
costs; increases in labor productivity offset hourly compensation increases and lower unit labor costs.
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 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.
Table 1. Percent change in output per hour, unit labor costs, and related data, 2011-2012
Industry
NAICS code
2012 Employment (thousands)
Percent change, 2011-2012
Output per hour
Output
Hours
Labor compensation
Unit labor costs
Wholesale Trade
Wholesale trade
42
5,815.7
2.5
3.9
1.4
4.5
0.6
Durable goods
423
2,908.6
5.0
6.2
1.1
4.4
-1.7
Motor vehicles and parts
4231
323.0
18.0
17.7
-0.3
6.2
-9.7
Furniture and furnishings
4232
98.7
-0.1
1.4
1.5
7.9
6.4
Lumber and construction supplies
4233
187.4
10.5
11.1
0.6
3.0
-7.3
Commercial equipment
4234
630.9
4.2
3.6
-0.5
2.6
-1.0
Metals and minerals
4235
122.5
9.9
11.2
1.2
4.6
-6.0
Electric goods
4236
324.2
-2.4
-0.3
2.1
4.3
4.6
Hardware and plumbing
4237
228.3
4.3
4.8
0.4
3.9
-0.9
Machinery and supplies
4238
657.1
1.4
4.6
3.1
7.1
2.4
Miscellaneous durable goods
4239
336.5
-9.8
-8.5
1.4
2.8
12.4
Nondurable goods
424
2,033.1
0.1
1.5
1.4
3.7
2.1
Paper and paper products
4241
122.5
-4.3
0.5
5.0
2.5
2.1
Druggists' goods
4242
196.9
-8.6
-4.9
4.0
4.3
9.7
Apparel and piece goods
4243
147.2
4.5
3.6
-0.9
5.4
1.7
Grocery and related products
4244
740.4
2.3
2.8
0.5
1.3
-1.4
Farm product raw materials
4245
81.5
-0.3
-1.4
-1.1
1.4
2.8
Chemicals
4246
126.0
-1.5
3.7
5.3
5.0
1.2
Petroleum
4247
96.8
4.7
3.8
-0.8
4.8
1.0
Alcoholic beverages
4248
172.7
-0.8
1.2
2.0
9.0
7.6
Miscellaneous nondurable goods
4249
349.0
3.7
5.0
1.3
3.9
-1.1
Electronic markets and agents and brokers
425
874.0
2.1
4.4
2.3
6.4
1.9
Electronic markets and agents and brokers
4251
874.0
2.1
4.4
2.3
6.4
1.9
Retail Trade
Retail trade
44-45
15,690.5
2.4
3.7
1.2
3.2
-0.5
Motor vehicle and parts dealers
441
1,793.9
1.5
6.0
4.4
6.0
0.0
Automobile dealers
4411
1,131.7
1.0
6.9
5.9
7.0
0.0
Other motor vehicle dealers
4412
137.3
2.3
5.7
3.3
9.2
3.3
Auto parts, accessories, and tire stores
4413
524.9
-2.9
-1.3
1.6
2.1
3.5
Furniture and home furnishings stores
442
475.6
8.8
8.7
-0.1
1.4
-6.7
Furniture stores
4421
226.1
8.4
5.5
-2.7
3.4
-2.0
Home furnishings stores
4422
249.5
9.1
12.4
3.1
-0.9
-11.9
Electronics and appliance stores
443
517.8
7.0
6.9
-0.1
1.3
-5.2
Electronics and appliance stores
4431
517.8
7.0
6.9
-0.1
1.3
-5.2
Building material and garden supply stores
444
1,206.0
4.2
3.5
-0.6
0.5
-2.9
Building material and supplies dealers
4441
1,053.9
4.0
3.3
-0.6
1.0
-2.2
Lawn and garden equipment and supplies stores
4442
152.1
5.4
4.7
-0.7
-3.6
-8.0
Food and beverage stores
445
2,958.8
-1.7
0.9
2.6
2.8
1.9
Grocery stores
4451
2,548.3
-1.6
0.6
2.2
2.6
2.0
Specialty food stores
4452
247.7
2.4
7.0
4.5
3.7
-3.1
Beer, wine and liquor stores
4453
162.8
-4.4
3.0
7.7
5.3
2.2
Health and personal care stores
446
1,033.9
-0.2
-0.4
-0.2
1.3
1.7
Health and personal care stores
4461
1,033.9
-0.2
-0.4
-0.2
1.3
1.7
Gasoline stations
447
854.1
0.1
1.1
0.9
3.7
2.6
Gasoline stations
4471
854.1
0.1
1.1
0.9
3.7
2.6
Clothing and clothing accessories stores
448
1,496.1
-0.6
3.1
3.8
1.9
-1.2
Clothing stores
4481
1,129.6
-3.4
2.6
6.2
3.2
0.6
Shoe stores
4482
192.7
6.4
2.3
-3.8
4.4
2.1
Jewelry, luggage, and leather goods stores
4483
173.8
7.4
6.9
-0.4
-3.3
-9.6
Sporting goods, hobby, book, and music stores
451
667.1
7.3
6.3
-0.9
-1.0
-6.9
Sporting goods and musical instrument stores
4511
540.1
7.0
8.5
1.4
0.9
-7.0
Book, periodical, and music stores
4512
127.0
8.5
-1.9
-9.6
-7.5
-5.7
General merchandise stores
452
3,096.0
6.0
3.1
-2.7
2.0
-1.1
Department stores
4521
1,501.0
3.9
-2.0
-5.7
-0.5
1.5
Other general merchandise stores
4529
1,595.0
5.1
5.3
0.2
4.3
-1.0
Miscellaneous store retailers
453
966.4
-0.8
6.7
7.5
4.9
-1.7
Florists
4531
82.7
-5.2
9.8
15.9
3.1
-6.2
Office supplies, stationery and gift stores
4532
325.4
-0.3
4.7
4.9
-0.5
-4.9
Used merchandise stores
4533
214.6
-6.9
9.0
17.0
18.7
8.9
Other miscellaneous store retailers
4539
343.7
4.2
7.2
2.8
4.4
-2.6
Nonstore retailers
454
624.8
5.5
8.0
2.3
10.0
1.9
Electronic shopping and mail-order houses
4541
333.2
3.1
9.9
6.6
14.8
4.5
Vending machine operators
4542
44.0
7.5
-0.5
-7.4
-4.6
-4.2
Direct selling establishments
4543
247.6
3.8
1.7
-2.0
3.8
2.0
Food Services and Drinking Places
Food services and drinking places
722
10,211.9
-0.1
4.6
4.7
6.4
1.8
Full-service restaurants
7221
4,788.4
1.0
5.8
4.7
7.0
1.1
Limited-service eating places
7222
4,328.2
-2.0
3.1
5.2
6.0
2.8
Special food services
7223
721.4
0.9
6.0
5.0
4.9
-1.0
Drinking places, alcoholic beverages
7224
373.9
7.6
4.5
-2.9
7.5
2.9
Table 2. Average annual percent change in output per hour, unit labor costs, and related data, 1987-2012
United States Department of Labor
