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

For release 10:00 a.m. (ET) Thursday, May 28, 2026                                               USDL-26-0772

Technical Information:  (202) 691-5606  •  productivity@bls.gov  •  www.bls.gov/productivity 
Media Contact:          (202) 691-5902  •  PressOffice@bls.gov


                              PRODUCTIVITY AND COSTS BY INDUSTRY 
                      WHOLESALE TRADE AND RETAIL TRADE INDUSTRIES – 2025


Labor productivity grew 4.4 percent in wholesale trade and 2.9 percent in retail trade in 2025, the U.S. 
Bureau of Labor Statistics reported today. In wholesale trade, output grew 3.1 percent and hours worked 
decreased 1.2 percent. In retail trade, output grew 2.5 percent and hours worked decreased 0.4 percent. 
Unit labor costs, which reflect the total labor costs required to produce a unit of output, fell 0.4 percent 
in wholesale trade and 0.7 percent in retail trade.

The ten largest four-digit NAICS industries by employment represent 58.8 percent of all workers in the 
wholesale and retail trade sectors. Among these ten industries, productivity growth in 2025 was greatest 
in clothing stores (+11.2 percent), building on its increase in 2024. Four of these ten industries posted 
productivity declines: building material and supplies dealers (-3.4 percent), grocery stores (-3.1 percent), 
other general merchandise stores (-2.0 percent), and machinery and supply merchant wholesalers (-0.1 
percent).

Labor Productivity Rose in 12 of 15 Three-Digit NAICS Trade Industries in 2025

Productivity increased in 12 of 15 three-digit NAICS industries in 2025. (See table 1.)
 • The industry with the greatest productivity gain was wholesale electronic markets and agents and 
   brokers (+13.4 percent).
 • Three industries had an increase in labor hours: motor vehicle and parts dealers (+0.3 percent), 
   general merchandise stores (+0.9 percent), and food and beverage stores (+1.9 percent).
 • Two industries had declines in productivity: food and beverage stores (-1.7 percent), with hours 
   increasing faster than output; and building material and garden supply stores (-1.7 percent), with 
   output decreasing faster than hours.

Labor Productivity Increased in 35 of 46 Four-Digit NAICS Trade Industries in 2025

Productivity increased in 14 of 19 four-digit NAICS wholesale trade industries with output increasing in 
11 industries and hours worked rising in 5 industries. 
 • Productivity rose 3.6 percent in durable goods wholesalers and 3.9 percent in nondurable goods 
   wholesalers. 
 • Among four-digit industries, the highest increase in productivity occurred in appliance and 
   electric goods merchant wholesalers (+15.2 percent). Output rose 12.8 percent while hours 
   declined 2.1 percent.  

Productivity increased in 21 of 27 four-digit NAICS retail trade industries as output grew in 18 
industries and hours worked rose in 6 industries.
 • The largest productivity increase occurred in vending machine operators, which posted its largest 
   productivity gain on record (+18.2 percent). Output decreased (-0.7 percent) and hours fell more 
   sharply (-16.0 percent).
 • The largest output increase occurred in used merchandise stores (+11.0 percent). This increase 
   combined with a drop in hours (-1.4 percent) resulted in a 12.5-percent growth in productivity.

Unit Labor Costs Declined in 9 of 15 Three-Digit NAICS Trade Industries in 2025

When productivity gains outpace hourly compensation, unit labor costs decline.
 • Among four-digit NAICS industries, unit labor costs fell in 8 of 19 wholesale trade industries 
   and in 19 of 27 retail trade industries.
 • The largest decrease in unit labor costs occurred in electronic markets and agents and brokers 
   (-10.6 percent), where productivity grew faster (+13.4 percent) than hourly compensation (+1.4 
   percent).
 • Hourly compensation rose in 13 of 15 three-digit NAICS industries.

Long-term Labor Productivity Increases in All but 3 Four-Digit NAICS Trade Industries

From 1987 to 2025, labor productivity increased 2.4 percent per year in wholesale trade and 3.2 
percent per year in retail trade. (See table 2.)
 • Among the 46 four-digit NAICS industries, productivity rose in all but three industries: 
   department stores (-2.0 percent per year), metal and mineral (except petroleum) merchant 
   wholesalers (-0.5 percent per year), and miscellaneous nondurable goods merchant wholesalers 
   (unchanged).
 • Of the 43 four-digit NAICS industries with increasing productivity growth, output rose in 37 
   industries and hours worked increased in 19.
 • Median productivity among four-digit NAICS industries grew at an annual rate of 2.1 percent.

Long-term Trends in Unit Labor Costs Vary by Sector

From 1987 to 2025, unit labor costs increased 1.5 percent per year in wholesale trade and 0.1 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 2025. 

Unit labor costs for wholesale nondurable goods rose steadily over the long term (+2.9 percent per year) 
while wholesale durable goods (+0.4 percent per year) and retail trade (+0.1 percent per year) changed 
little by comparison. At the same time, productivity rose more slowly for wholesale nondurable goods 
(+1.1 percent per year) compared to wholesale durable goods (+3.6 percent per year) and retail trade 
(+3.2 percent per year).

Trends by Time Period

Of the 46 four-digit NAICS trade industries, labor productivity increased in 34 industries and output 
increased in 29 industries from 2019 to 2025. (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 industry with the highest labor productivity growth rate during this 
period was electronic shopping and mail-order houses (+12.6 percent per year). This industry also had 
the highest output increase from 2019 to 2025 (+12.4 percent). Department stores experienced the 
steepest annual declines in labor productivity (-3.5 percent) and output (-6.4 percent) during this period.

Hours worked decreased in 29 of 46 four-digit trade industries from 2019 to 2025. The 3 industries 
with the largest decreases in hours worked over these 6 years were shoe stores (-6.3 percent per year), 
office supplies, stationery, and gift stores (-4.9 percent per year), and paper and paper product merchant 
wholesalers (-4.6 percent per year). The industry with the largest increase in hours worked was used 
merchandise stores (+3.1 percent per year).

Productivity growth was fastest for both durable and nondurable wholesale trade industries in the 1987-
2007 period and for retail trade in the 2019-25 period. In all three periods, unit labor costs remained 
positive for wholesale nondurable goods. After falling from 1987 to 2007, wholesale durable goods unit 
labor costs increased for both the 2007-19 and 2019-25 periods. In retail trade, unit labor costs fell 
slightly from 1987 to 2007, were unchanged from 2007 to 2019, and rose from 2019 to 2025.

Additional Information

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

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, 2019-2025


	
Industry
	
2017 NAICS code
	
2025
Employment
(thousands)
	
Annual percent change, 2019-2025


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




	

		

			
Wholesale trade
			
42
			
6,169.3
			
1.3
			
3.6
			
1.5
			
0.1
			
5.1
			
5.0
		
		

	


		

			
Merchant wholesalers, durable goods
			
423
			
3,457.1
			
1.1
			
3.8
			
1.9
			
0.8
			
5.8
			
5.0
		
		

			
Motor vehicles and parts
			
4231
			
379.1
			
1.5
			
3.0
			
2.1
			
0.6
			
5.2
			
4.5
		
		

			
Furniture and furnishings
			
4232
			
105.8
			
1.4
			
3.3
			
-1.0
			
-2.4
			
2.3
			
4.8
		
		

			
Lumber and construction supplies
			
4233
			
265.1
			
-2.0
			
6.6
			
-1.2
			
0.9
			
5.3
			
4.4
		
		

			
Commercial equipment
			
4234
			
745.2
			
0.8
			
5.0
			
1.7
			
0.9
			
6.8
			
5.9
		
		

			
Metals and minerals
			
4235
			
137.7
			
-1.2
			
5.9
			
-2.2
			
-1.0
			
3.6
			
4.6
		
		

			
Appliances and electric goods
			
4236
			
378.7
			
6.6
			
-2.0
			
7.4
			
0.7
			
5.2
			
4.5
		
		

			
Hardware and plumbing
			
4237
			
322.3
			
-0.8
			
6.5
			
0.5
			
1.3
			
7.1
			
5.6
		
		

			
Machinery and supplies
			
4238
			
790.9
			
-0.9
			
5.5
			
0.4
			
1.2
			
5.9
			
4.6
		
		

			
Miscellaneous durable goods
			
4239
			
332.3
			
0.0
			
4.4
			
1.0
			
0.9
			
5.4
			
4.4
		
		

	


		

			
Merchant wholesalers, nondurable goods
			
424
			
2,255.2
			
1.3
			
3.7
			
1.0
			
-0.2
			
4.7
			
5.0
		
		

			
Paper and paper products
			
4241
			
112.8
			
1.0
			
5.4
			
-3.6
			
-4.6
			
1.6
			
6.5
		
		

			
Druggists' goods
			
4242
			
267.8
			
5.4
			
0.2
			
6.7
			
1.2
			
7.0
			
5.7
		
		

			
Apparel and piece goods
			
4243
			
146.2
			
-0.2
			
3.4
			
-0.6
			
-0.3
			
2.8
			
3.2
		
		

			
Grocery and related products
			
4244
			
846.3
			
0.4
			
4.9
			
0.7
			
0.3
			
5.6
			
5.3
		
		

			
Farm product raw materials
			
4245
			
78.1
			
-0.9
			
4.6
			
1.3
			
2.2
			
6.0
			
3.7
		
		

			
Chemicals
			
4246
			
154.0
			
-0.1
			
4.3
			
-0.8
			
-0.7
			
3.5
			
4.2
		
		

			
Petroleum
			
4247
			
102.0
			
1.1
			
2.7
			
0.2
			
-0.9
			
2.9
			
3.9
		
		

			
Alcoholic beverages
			
4248
			
216.0
			
0.9
			
2.6
			
1.0
			
0.0
			
3.5
			
3.5
		
		

			
Miscellaneous nondurable goods
			
4249
			
332.0
			
-1.4
			
6.5
			
-2.6
			
-1.2
			
3.7
			
5.0
		
		

	


		

			
Electronic markets and agents and brokers
			
425
			
457.0
			
3.8
			
0.9
			
1.0
			
-2.7
			
1.9
			
4.7
		
		

			
Electronic markets and agents and brokers
			
4251
			
457.0
			
3.8
			
0.9
			
1.0
			
-2.7
			
1.9
			
4.7
		
		

	


		

			
Retail trade
			
44-45
			
16,114.1
			
3.7
			
1.1
			
2.9
			
-0.8
			
4.0
			
4.8
		
		

	


		

			
Motor vehicle and parts dealers
			
441
			
2,095.0
			
1.4
			
3.7
			
1.1
			
-0.3
			
4.8
			
5.1
		
		

			
Automobile dealers
			
4411
			
1,331.3
			
1.3
			
4.4
			
1.0
			
-0.3
			
5.5
			
5.8
		
		

			
Other motor vehicle dealers
			
4412
			
162.2
			
1.3
			
2.4
			
0.0
			
-1.2
			
2.4
			
3.7
		
		

			
Auto parts, accessories, and tire stores
			
4413
			
601.5
			
2.8
			
0.4
			
2.8
			
0.0
			
3.3
			
3.3
		
		

	


		

			
Furniture and home furnishings stores
			
442
			
402.0
			
3.9
			
1.5
			
-0.2
			
-4.0
			
1.3
			
5.5
		
		

			
Furniture stores
			
4421
			
193.2
			
3.7
			
0.9
			
-0.3
			
-3.9
			
0.6
			
4.7
		
		

			
Home furnishings stores
			
4422
			
208.8
			
4.2
			
2.2
			
-0.1
			
-4.2
			
2.0
			
6.5
		
		

	


		

			
Electronics and appliance stores
			
443
			
375.1
			
9.0
			
-4.7
			
4.7
			
-4.0
			
-0.3
			
3.9
		
		

			
Electronics and appliance stores
			
4431
			
375.1
			
9.0
			
-4.7
			
4.7
			
-4.0
			
-0.3
			
3.9
		
		

	


		

			
Building material and garden supply stores
			
444
			
1,407.1
			
-0.3
			
4.3
			
-0.3
			
0.0
			
4.0
			
4.0
		
		

			
Building material and supplies dealers
			
4441
			
1,216.4
			
-0.5
			
4.7
			
-0.8
			
-0.3
			
3.9
			
4.2
		
		

			
Lawn and garden equipment and supplies stores
			
4442
			
190.7
			
1.2
			
1.9
			
2.7
			
1.4
			
4.7
			
3.2
		
		

	


		

			
Food and beverage stores
			
445
			
3,271.9
			
0.8
			
4.2
			
0.8
			
0.1
			
5.1
			
5.0
		
		

			
Grocery stores
			
4451
			
2,851.5
			
0.5
			
4.6
			
0.7
			
0.3
			
5.3
			
5.1
		
		

			
Specialty food stores
			
4452
			
232.4
			
2.4
			
3.1
			
0.5
			
-1.8
			
3.7
			
5.5
		
		

			
Beer, wine and liquor stores
			
4453
			
188.0
			
2.6
			
0.7
			
2.0
			
-0.6
			
2.7
			
3.3
		
		

	


		

			
Health and personal care stores
			
446
			
1,049.0
			
5.2
			
-2.0
			
4.1
			
-1.1
			
2.0
			
3.1
		
		

			
Health and personal care stores
			
4461
			
1,049.0
			
5.2
			
-2.0
			
4.1
			
-1.1
			
2.0
			
3.1
		
		

	


		

			
Gasoline stations
			
447
			
993.2
			
-0.9
			
6.2
			
-0.3
			
0.6
			
5.8
			
5.2
		
		

			
Gasoline stations
			
4471
			
993.2
			
-0.9
			
6.2
			
-0.3
			
0.6
			
5.8
			
5.2
		
		

	


		

			
Clothing and clothing accessories stores
			
448
			
1,174.7
			
6.8
			
-0.2
			
2.4
			
-4.2
			
2.2
			
6.6
		
		

			
Clothing stores
			
4481
			
842.5
			
6.7
			
-0.4
			
2.4
			
-4.0
			
2.0
			
6.3
		
		

			
Shoe stores
			
4482
			
170.9
			
6.5
			
1.0
			
-0.3
			
-6.3
			
0.7
			
7.6
		
		

			
Jewelry, luggage, and leather goods stores
			
4483
			
161.3
			
7.6
			
-0.9
			
4.6
			
-2.7
			
3.7
			
6.6
		
		

	


		

			
Sports, hobby, music instruments, book stores
			
451
			
574.4
			
4.2
			
0.1
			
3.3
			
-0.9
			
3.4
			
4.4
		
		

			
Sporting goods and musical instrument stores
			
4511
			
514.0
			
4.6
			
0.0
			
3.9
			
-0.8
			
3.9
			
4.7
		
		

			
Book stores and news dealers
			
4512
			
60.4
			
0.8
			
1.2
			
-1.6
			
-2.3
			
-0.4
			
1.9
		
		

	


		

			
General merchandise stores
			
452
			
3,174.5
			
1.7
			
2.4
			
1.7
			
-0.1
			
4.1
			
4.2
		
		

			
Department stores
			
4522
			
927.9
			
-3.5
			
7.0
			
-6.4
			
-3.0
			
0.2
			
3.2
		
		

			
Other general merchandise stores
			
4523
			
2,246.6
			
0.9
			
3.5
			
2.2
			
1.3
			
5.8
			
4.4
		
		

	


		

			
Miscellaneous store retailers
			
453
			
947.9
			
4.7
			
0.5
			
3.3
			
-1.3
			
3.8
			
5.1
		
		

			
Florists
			
4531
			
70.9
			
3.6
			
2.6
			
1.6
			
-1.9
			
4.3
			
6.3
		
		

			
Office supplies, stationery and gift stores
			
4532
			
205.3
			
3.1
			
0.5
			
-2.0
			
-4.9
			
-1.5
			
3.6
		
		

			
Used merchandise stores
			
4533
			
264.0
			
2.2
			
1.9
			
5.4
			
3.1
			
7.4
			
4.2
		
		

			
Other miscellaneous store retailers
			
4539
			
407.7
			
6.5
			
0.0
			
4.6
			
-1.8
			
4.6
			
6.5
		
		

	


		

			
Nonstore retailers
			
454
			
649.3
			
13.0
			
-5.4
			
11.3
			
-1.5
			
5.3
			
6.9
		
		

			
Electronic shopping and mail-order houses
			
4541
			
440.7
			
12.6
			
-5.3
			
12.4
			
-0.2
			
6.5
			
6.7
		
		

			
Vending machine operators
			
4542
			
42.6
			
0.2
			
5.0
			
-2.9
			
-3.1
			
2.0
			
5.3
		
		

			
Direct selling establishments
			
4543
			
166.0
			
6.0
			
-0.6
			
1.6
			
-4.1
			
1.0
			
5.3