For release 10:00 a.m. (EDT) Tuesday, August 31, 2010 USDL-10-1209

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, 2009

Labor productivity – defined as output per hour – fell in wholesale trade, but rose in retail trade and in 

food services and drinking places, in 2009, the Bureau of Labor Statistics reported today. Productivity 

changes were as follows: 

-3.3 percent in wholesale trade, 

 1.5 percent in retail trade, and 

 1.0 percent in food services and drinking places. 

In comparison, labor productivity fell in each of the three sectors overall in 2008. However, both output 

and hours declined more rapidly in each of the sectors in 2009 than they did in 2008. (See chart 1.) 

-3.3

-2.3

-10.1

-3.1

-7.1

-0.8

1.5

-2.0

-4.4 -4.1

-5.8

-2.1

1.0

-0.8

-2.5

-1.4

-3.5

-0.6

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

% Change 

Output per Hour Output Hours

Wholesale

Trade

Retail 

Trade

Food Services

and Drinking 

Places

Wholesale

Trade

Retail 

Trade

Food Services

and Drinking 

Places

Chart 1. Percent change in output per hour, output, and hours, 2009 and 2008

Wholesale

Trade

Retail 

Trade

Food Services

and Drinking 

Places

Wholesale

Trade

Retail 

Trade

Food Services

and Drinking 

Places

2009 2008
- 2 -

Unit labor costs, which reflect the total labor costs required to produce a unit of output, declined in 

retail trade but rose in wholesale trade and food services and drinking places. By comparison, unit labor 

costs increased in each of the sectors in 2008. 

Productivity rose in 2009 in nearly 60 percent of the 50 detailed industries studied. (See table 1.) This 

was higher than the 36 percent of detailed industries that recorded productivity increases the previous 

year. In 2009, productivity growth in most industries resulted from declines in hours that more than 

offset changes in output. Output grew in only 10 of the detailed industries in 2009, while hours declined 

in 47. In comparison, output grew in 14 industries and hours declined in 30 in 2008. In 2009, only a 

single industry – farm product raw materials wholesalers – registered productivity growth as a result of 

increases in both output and hours. Unit labor costs declined in 46 percent of the detailed industries in 

2009, compared to 32 percent in 2008. 

Wholesale trade

Labor productivity fell 3.3 percent as output declined 10.1 percent and hours fell 7.1 percent. Output per 

hour rose in eight of the 19 detailed wholesale trade industries in 2009, compared with five in 2008.

Productivity fell sharply in motor vehicles and parts wholesalers and in machinery and supplies 

wholesalers. Output grew in two industries, while hours declined in 18. Unit labor costs declined in six 

industries in 2009. 

Retail trade 

Labor productivity grew 1.5 percent while output and hours declined by 4.4 and 5.8 percent, 

respectively. Output per hour increased in 18 of the 27 detailed retail trade industries in 2009, compared 

with 12 in 2008. Output rose in eight industries while hours declined in 25 industries. Productivity 

increased most rapidly in florists, in other motor vehicle dealers, and in electronics and appliance stores, 

where hours fell sharply, as well as in specialty food stores where hours declined less rapidly. Unit labor 

costs fell in 16 industries. 

Food services and drinking places

Labor productivity rose 1.0 percent as output fell 2.5 percent and hours declined by 3.5 percent. Output 

per hour increased in three of the four detailed food services and drinking places industries in 2009, an 

improvement over 2008, when productivity grew in only one industry. Output and hours fell in all the 

industries in 2009 and unit labor costs fell in one industry. 
- 3 -

The chart below shows the change in productivity in the largest wholesale trade, retail trade, and food 

services and drinking places industries. Among these industries, electronics and appliance stores 

recorded the largest productivity increase and machinery and supplies wholesalers had the largest 

productivity decline. 

Over the longer term, 1987 – 2009, output per hour increased in wholesale trade, retail trade, and food 

services and drinking places at the following average annual rates: 

 2.6 percent in wholesale trade, 

 2.9 percent in retail trade, and 

 0.7 percent in food services and drinking places. 

Output, hours, and unit labor costs also rose in all three sectors over the period. (See table 2.) 

‐13.8

‐6.7

‐5.3

‐2.6

‐1.4

‐1.0

‐0.4

‐0.2

0.0

0.3

0.8

1.4

1.8

1.9

2.8

3.3

4.0

5.5

11.4

13.8

-20 -15 -10 -5 0 5 10 15 20

Machinery and supplies wholesalers

Electronic markets and agents and brokers

Building material and supplies dealers

Automotive parts, accessories, and tire stores

Department stores

Automobile dealers

Gasoline stations

Special food services

Grocery and related products wholesalers

Full-service restaurants

Clothing stores

Grocery stores

Commercial equipment wholesalers

Limited-service eating places

Drinking places (alcoholic beverages)

Health and personal care stores

Other general merchandise stores

Miscellaneous nondurable goods wholesalers

Sporting goods and musical instrument stores

Electronics and appliance stores

Percent change

Chart 2: Percent change in output per hour for the largest (by employment) trade 

and food services and drinking places industries, 2009
- 4 -

Between 1987 and 2009, productivity increased in 46 of the 50 detailed industries and unit labor costs 

fell in 17. Chart 3 compares the distribution of average annual percent changes in labor productivity 

between 1987 and 2009 with the distribution of changes in 2009 for 50 industries in wholesale trade, 

retail trade, and food services and drinking places. 

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 as data become available. Productivity data through 

2008 for industries in mining, manufacturing, and services were last published on July 9, 2010 and can 

be found on the BLS Labor Productivity and Costs web site at www.bls.gov/lpc. 

0

10

20

30

Number of Industries

Percent change

1987 - 2009

2009

Chart 3. Distribution of annual percent changes in output per hour, 1987-2009 and 2009
- 5 -

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. 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. The measures in this news release incorporate current data from the 

Census Bureau’s Annual Wholesale Trade Report (March 2010), Monthly Wholesale Trade Survey 

(May 2010), Annual Retail Trade Survey (March 2010), and the Annual Revision of the Monthly Retail 

and Food Services: Sales and Inventories (April 2010). 

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. Data from the Current 

Population Survey (CPS) are also used to supplement the CES data. CPS data are used 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. 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 compensation increases and lower unit labor costs. 

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. 

Revisions: This news release incorporates preliminary data from the Census Bureau’s 2007 Economic 

Census; the labor productivity and output series for some industries have been revised for 2008 and prior 

years as a result. This news release also incorporates the annual benchmark revision of the BLS Current 
- 6 -

Employment Statistics (CES) survey published in February 2010. The industries included in this release 

are classified according to the 2007 NAICS. Since the last release of data for wholesale trade, retail 

trade, and food services and drinking places on August 28, 2009, the base year has been changed from 

1997 to 2002 for all indexes. All of the measures for 2009 in this release are preliminary and subject to 

revision. 

Additional Information: 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. 

Industry productivity and related indexes and rates of change can be accessed online by visiting the 

Labor Productivity and Costs web site at http://www.bls.gov/lpc/. Levels of industry employment, 

hours, labor compensation, value of production, and the implicit price deflator for output for these 

industries are available upon request 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. 

To subscribe to the industry productivity program’s electronic notification services, send an e-mail to 

dipsnews@bls.gov with the word “subscribe” in the subject line. 
2009 

NAICS Industry Employment Output Labor Unit labor

code (thousands) per hour Output Hours compensation costs

Wholesale Trade

42 Wholesale trade 5793 -3.3 -10.1 -7.1 -7.2 3.3

423 Durable goods 2919 -6.6 -15.1 -9.1 -10.2 5.8

4231 Motor vehicles and parts 327 -14.7 -21.6 -8.1 -9.5 15.5

4232 Furniture and furnishings 103 2.9 -16.6 -18.9 -18.9 -2.8

4233 Lumber and construction supplies 208 -8.4 -23.3 -16.2 -16.8 8.4

4234 Commercial equipment 634 1.8 -1.3 -3.1 -4.4 -3.1

4235 Metals and minerals 117 -11.0 -25.0 -15.7 -18.1 9.3

4236 Electric goods 332 2.3 -8.3 -10.4 -10.8 -2.7

4237 Hardware and plumbing 237 -8.9 -17.2 -9.1 -9.2 9.7

4238 Machinery and supplies 653 -13.8 -19.7 -6.8 -11.3 10.4

4239 Miscellaneous durable goods 307 -3.7 -16.2 -13.0 -14.6 1.8

424 Nondurable goods 2048 0.8 -4.6 -5.3 -3.0 1.6

4241 Paper and paper products 132 -1.3 -9.0 -7.7 -8.7 0.2

4242 Druggists' goods 205 8.8 -1.5 -9.5 -1.0 0.6

4243 Apparel and piece goods 142 4.4 -5.1 -9.2 -9.8 -4.9

4244 Grocery and related products 744 0.0 -4.7 -4.7 -0.6 4.3

4245 Farm product raw materials 76 8.3 10.0 1.6 5.3 -4.3

4246 Chemicals 126 -10.6 -13.7 -3.4 -6.1 8.7

4247 Petroleum 100 -5.6 -8.8 -3.4 -3.7 5.6

4248 Alcoholic beverages 164 2.2 -1.2 -3.4 -0.5 0.7

4249 Miscellaneous nondurable goods 359 5.5 0.2 -5.0 -5.3 -5.5

425 Electronic markets and agents and brokers 826 -6.7 -10.2 -3.7 -5.4 5.3

4251 Electronic markets and agents and brokers 826 -6.7 -10.2 -3.7 -5.4 5.3

Retail Trade

44-45 Retail trade 15446 1.5 -4.4 -5.8 -5.0 -0.6

441 Motor vehicle and parts dealers 1707 -1.8 -12.1 -10.5 -12.2 -0.1

4411 Automobile dealers 1066 -1.0 -13.3 -12.4 -14.2 -1.1

4412 Other motor vehicle dealers 142 14.1 -7.6 -19.0 -19.6 -13.0

4413 Auto parts, accessories, and tire stores 499 -2.6 -5.9 -3.4 -2.1 4.0

442 Furniture and home furnishings stores 486 6.2 -10.9 -16.1 -14.8 -4.3

4421 Furniture stores 238 4.2 -10.4 -14.0 -14.6 -4.6

4422 Home furnishings stores 249 8.6 -11.5 -18.5 -15.0 -4.0

443 Electronics and appliance stores 511 13.8 0.5 -11.6 -10.9 -11.4

4431 Electronics and appliance stores 511 13.8 0.5 -11.6 -10.9 -11.4

444 Building material and garden supply stores 1211 -4.2 -11.6 -7.8 -7.4 4.8

4441 Building material and supplies dealers 1064 -5.3 -13.1 -8.2 -7.6 6.3

4442 Lawn and garden equipment and supplies stores 147 2.8 -2.1 -4.8 -6.1 -4.0

445 Food and beverage stores 2924 1.9 -1.1 -2.9 -1.4 -0.3

4451 Grocery stores 2527 1.4 -1.3 -2.7 -0.3 1.0

4452 Specialty food stores 240 13.9 8.8 -4.4 -8.6 -16.1

4453 Beer, wine and liquor stores 157 0.2 -2.5 -2.7 -6.0 -3.6

446 Health and personal care stores 1028 3.3 0.1 -3.1 1.6 1.6

4461 Health and personal care stores 1028 3.3 0.1 -3.1 1.6 1.6

447 Gasoline stations 842 -0.4 -3.2 -2.9 -0.5 2.9

4471 Gasoline stations 842 -0.4 -3.2 -2.9 -0.5 2.9

448 Clothing and clothing accessories stores 1467 -0.2 -4.6 -4.3 -6.9 -2.5

4481 Clothing stores 1103 0.8 -4.2 -5.0 -7.4 -3.3

4482 Shoe stores 184 -6.6 -5.4 1.2 -5.3 0.1

4483 Jewelry, luggage, and leather goods stores 180 0.7 -5.5 -6.2 -6.3 -0.8

Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2008-2009

Percent change, 2008-2009
2009 

NAICS Industry Employment Output Labor Unit labor

code (thousands) per hour Output Hours compensation costs

451 Sporting goods, hobby, book, and music stores 681 10.6 -1.1 -10.6 -5.8 -4.7

4511 Sporting goods and musical instrument stores 507 11.4 0.3 -10.0 -5.1 -5.3

4512 Book, periodical, and music stores 174 8.1 -5.2 -12.4 -7.8 -2.7

452 General merchandise stores 2971 2.6 -0.4 -2.9 0.7 1.1

4521 Department stores 1471 -1.4 -5.6 -4.3 -1.7 4.1

4529 Other general merchandise stores 1500 4.0 2.3 -1.6 3.0 0.7

453 Miscellaneous store retailers 969 -0.5 -6.4 -5.9 -3.6 3.0

4531 Florists 94 16.0 -3.5 -16.8 -13.6 -10.5

4532 Office supplies, stationery and gift stores 355 10.7 -0.9 -10.5 -7.0 -6.1

4533 Used merchandise stores 183 -4.9 1.4 6.7 11.3 9.7

4539 Other miscellaneous store retailers 337 -8.4 -11.8 -3.7 -3.3 9.7

454 Nonstore retailers 649 7.1 3.8 -3.1 -2.2 -5.8

4541 Electronic shopping and mail-order houses 300 5.2 4.6 -0.6 -1.3 -5.6

4542 Vending machine operators 55 -9.2 -11.3 -2.3 -10.8 0.5

4543 Direct selling establishments 294 10.5 3.2 -6.5 -1.8 -4.9

Food Services and Drinking Places 

722 Food services and drinking places 9648 1.0 -2.5 -3.5 -1.9 0.6

7221 Full-service restaurants 4518 0.3 -3.4 -3.6 -2.0 1.5

7222 Limited-service eating places 4120 1.9 -1.3 -3.1 -0.2 1.1

7223 Special food services 651 -0.2 -3.8 -3.6 -7.9 -4.3

7224 Drinking places, alcoholic beverages 360 2.8 -3.2 -5.8 -0.1 3.2

 

Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2008-2009

Percent change, 2008-2009
NAICS Industry Output Labor Unit labor

code per hour Output Hours compensation costs

Wholesale Trade

42 Wholesale trade 2.6 2.9 0.3 4.3 1.3

423 Durable goods 4.4 4.4 0.0 4.1 -0.3

4231 Motor vehicles and parts 1.9 1.3 -0.6 3.2 1.9

4232 Furniture and furnishings 1.8 1.3 -0.5 3.7 2.3

4233 Lumber and construction supplies 0.6 0.9 0.3 2.8 1.8

4234 Commercial equipment 14.5 14.8 0.3 4.7 -8.8

4235 Metals and minerals -1.3 -1.5 -0.3 3.7 5.2

4236 Electric goods 8.3 7.7 -0.5 4.3 -3.2

4237 Hardware and plumbing 1.1 1.7 0.6 4.4 2.7

4238 Machinery and supplies 1.6 1.4 -0.1 3.9 2.4

4239 Miscellaneous durable goods 1.0 1.6 0.6 4.7 3.1

424 Nondurable goods 1.0 1.1 0.1 4.5 3.4

4241 Paper and paper products 1.7 0.7 -1.0 3.1 2.4

4242 Druggists' goods 2.3 4.1 1.7 9.3 5.0

4243 Apparel and piece goods 2.9 2.3 -0.5 3.3 1.0

4244 Grocery and related products 0.7 1.5 0.7 4.5 3.0

4245 Farm product raw materials 1.4 -1.0 -2.4 4.0 5.1

4246 Chemicals -0.2 0.3 0.5 4.2 3.9

4247 Petroleum 2.3 -0.1 -2.3 2.8 2.9

4248 Alcoholic beverages 0.3 1.9 1.6 5.0 3.0

4249 Miscellaneous nondurable goods 0.0 -0.2 -0.2 3.2 3.4

425 Electronic markets and agents and brokers 0.6 2.9 2.3 4.4 1.5

4251 Electronic markets and agents and brokers 0.6 2.9 2.3 4.4 1.5

Retail Trade

44-45 Retail trade 2.9 3.3 0.3 3.3 0.1

441 Motor vehicle and parts dealers 1.8 2.1 0.2 3.0 0.9

4411 Automobile dealers 1.8 1.9 0.1 2.9 0.9

4412 Other motor vehicle dealers 3.2 4.1 0.8 4.4 0.3

4413 Auto parts, accessories, and tire stores 1.7 2.0 0.3 3.1 1.1

442 Furniture and home furnishings stores 3.8 3.3 -0.5 2.6 -0.7

4421 Furniture stores 3.2 2.8 -0.4 2.2 -0.6

4422 Home furnishings stores 4.6 4.0 -0.6 3.1 -0.9

443 Electronics and appliance stores 13.5 14.2 0.6 4.0 -9.0

4431 Electronics and appliance stores 13.5 14.2 0.6 4.0 -9.0

444 Building material and garden supply stores 2.5 3.4 0.9 3.6 0.2

4441 Building material and supplies dealers 2.2 3.3 1.1 3.8 0.4

4442 Lawn and garden equipment and supplies stores 4.3 3.5 -0.7 2.2 -1.3

445 Food and beverage stores 0.4 0.2 -0.2 3.1 3.0

4451 Grocery stores 0.2 0.1 -0.1 3.4 3.2

4452 Specialty food stores 0.5 -0.1 -0.5 1.6 1.7

4453 Beer, wine and liquor stores 2.0 0.7 -1.3 2.2 1.5

446 Health and personal care stores 2.5 3.7 1.2 5.2 1.5

4461 Health and personal care stores 2.5 3.7 1.2 5.2 1.5

447 Gasoline stations 1.9 1.0 -0.8 2.4 1.4

4471 Gasoline stations 1.9 1.0 -0.8 2.4 1.4

448 Clothing and clothing accessories stores 4.7 4.1 -0.5 2.7 -1.3

4481 Clothing stores 5.0 4.7 -0.4 3.0 -1.6

4482 Shoe stores 3.4 2.3 -1.1 1.5 -0.8

4483 Jewelry, luggage, and leather goods stores 3.9 3.2 -0.7 2.6 -0.6

Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2009

Average annual percent change, 1987-2009
NAICS Industry Output Labor Unit labor

code per hour Output Hours compensation costs

451 Sporting goods, hobby, book, and music stores 4.1 4.2 0.1 3.4 -0.8

4511 Sporting goods and musical instrument stores 4.8 5.1 0.3 3.6 -1.4

4512 Book, periodical, and music stores 2.5 2.1 -0.4 2.7 0.6

452 General merchandise stores 3.5 5.1 1.6 3.9 -1.2

4521 Department stores 0.7 1.7 1.0 2.5 0.7

4529 Other general merchandise stores 6.7 9.0 2.2 5.6 -3.1

453 Miscellaneous store retailers 4.0 3.8 -0.2 2.3 -1.4

4531 Florists 3.7 0.4 -3.2 0.0 -0.4

4532 Office supplies, stationery and gift stores 6.4 5.6 -0.8 2.3 -3.1

4533 Used merchandise stores 4.8 5.9 1.0 3.9 -1.9

4539 Other miscellaneous store retailers 1.5 2.6 1.1 2.3 -0.3

454 Nonstore retailers 8.8 8.9 0.1 3.6 -4.9

4541 Electronic shopping and mail-order houses 11.4 15.2 3.4 7.4 -6.7

4542 Vending machine operators 0.8 -1.9 -2.6 0.9 2.9

4543 Direct selling establishments 3.6 1.7 -1.8 1.3 -0.4

Food Services and Drinking Places 

722 Food services and drinking places 0.7 2.0 1.4 5.2 3.1

7221 Full-service restaurants 0.6 2.1 1.4 6.0 3.9

7222 Limited-service eating places 0.7 2.3 1.6 5.0 2.7

7223 Special food services 1.6 2.6 0.9 3.5 0.9

7224 Drinking places, alcoholic beverages -0.3 -0.7 -0.4 2.2 2.9

 

 

Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2009

Average annual percent change, 1987-2009