For release 10:00 a.m. (EDT) Tuesday, August 30, 2011 USDL-11-1274

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, 2010 

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

services and drinking places, in 2010, the Bureau of Labor Statistics reported today. Productivity 

increased as follows: 

9.0 percent in wholesale trade, 

3.9 percent in retail trade, and

1.9 percent in food services and drinking places. 

Productivity was higher in all three sectors in 2010 compared to 2009. (See chart 1.) 

Output grew in all three sectors, after declining in each sector in 2009. Hours fell in wholesale trade and 

in food services and drinking places but rose in retail trade, after declining in each of the sectors in 2009. 

Productivity increased in 40 of the 50 detailed industries in 2010. (See table 1.) In most industries, 

growth resulted from increases in output that more than offset changes in hours. Output grew in 43 of 

the detailed industries and hours increased in 18. In the previous year, productivity rose in just over half 

of the detailed industries, as output grew in only five industries and hours declined in all but two. 

-2.5

9.0

-9.9

7.2

-7.7

-1.7

0.7

3.9

-5.0

4.5

-5.7

0.3 0.5

1.9

-3.5

1.3

-3.8

-0.6

-12.0

-6.0

0.0

6.0

12.0

Percent 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. Annual percent change in output per hour, output, and hours, 2009 and 2010

Wholesale

Trade

Retail Trade Food Services

and Drinking 

Places

Wholesale

Trade

Retail Trade Food Services

and Drinking 

Places

2009 2010
- 2 -

Unit labor costs, which reflect the total labor costs required to produce a unit of output, also improved 

in 2010, declining in wholesale trade and in retail trade and growing less rapidly in food services and 

drinking places in 2010 compared to the previous year. Unit labor costs declined in 36 of the detailed 

industries in 2010, compared to 15 in 2009. 

In wholesale trade, labor productivity rose 9.0 percent as output grew 7.2 percent and hours fell 1.7 

percent. Output per hour increased in 15 of the 19 detailed wholesale trade industries in 2010. Output 

grew in 16 industries and hours rose in five. Productivity rose most rapidly in motor vehicles and parts 

wholesalers and in electric goods wholesalers. Unit labor costs declined in 14 industries. 

In retail trade, labor productivity grew 3.9 percent, as output and hours increased by 4.5 and 0.5 

percent, respectively. Output per hour rose in 23 of the 27 detailed retail trade industries in 2010. Output 

grew in 24 industries and hours increased in 11. The largest productivity increases were in florists, used 

merchandise stores, and lawn and garden equipment and supplies stores. Unit labor costs fell in 22 

industries.

In food services and drinking places, labor productivity increased 1.9 percent as output grew 1.3 

percent and hours declined 0.6 percent. Output per hour rose in two of the four detailed food services 

and drinking places industries in 2010. Output increased in three industries and hours grew in two. Unit 

labor costs rose in all four industries. 

Chart 2 shows the change in productivity in the 20 largest wholesale trade, retail trade, and food services 

and drinking places industries. Among these industries, commercial equipment wholesalers recorded the 

largest productivity increase while special food services had the largest productivity decline. 

-4.9

-3.1

-2.8

-1

1.2

1.3

1.5

1.9

2.3

2.7

2.8

3.2

5.7

6.6

8.2

8.6

9.2

9.9

11.1

15.4

-10 -5 0 5 10 15 20

Special food services

Automotive parts, accessories, and tire stores

Department stores

Drinking places (alcoholic beverages)

Grocery stores

Health and personal care stores

Gasoline stations

Other general merchandise stores

Miscellaneous nondurable goods wholesalers

Limited-service eating places

Full-service restaurants

Clothing stores

Electronics and appliance stores

Automobile dealers

Grocery and related products wholesalers

Sporting goods, hobby, and musical instrument stores

Electronic markets and agents and brokers

Building material and supplies dealers

Machinery and supplies wholesalers

Commercial equipment wholesalers

Percent change

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

food services and drinking places industries, 2009-2010
- 3 -

Over the longer term (1987 to 2010), average annual productivity growth in the wholesale trade, retail 

trade, and food services and drinking places sectors advanced more slowly than in 2010. From 1987 to

2010, output per hour increased at the following average annual rates: 

 3.2 percent in wholesale trade, 

 2.9 percent in retail trade, and 

 0.7 percent in food services and drinking places. 

The number of detailed industries registering productivity increases over the long term, however, was 

greater than the number of industries recording productivity increases in 2010. Productivity increased in 

46 of the 50 detailed industries from 1987 to 2010. (See table 2.) 

Chart 3 compares the distribution of average annual percent changes in labor productivity from 1987 to 

2010 with the distribution of changes in 2010 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. 

Between 1987 and 2010, unit labor costs rose in wholesale trade and in food services and drinking 

places; unit labor costs in retail trade were unchanged. Unit labor costs fell in 16 of the detailed 

industries over the period. 

Industry labor productivity measures are updated as data become available. Productivity measures for 

industries in other sectors can be accessed on the BLS Labor Productivity and Costs web site at 

www.bls.gov/lpc. 

0

10

20

30

Number of industries

Percent change

Chart 3. Distribution of annual percent changes in output per hour, 1987-2010 and 2010

1987 - 2010

2010
- 4 -

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. 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. 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 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: The measures in this news release incorporate preliminary data from the Census Bureau’s 

Annual Wholesale Trade Report (February 2011), Monthly Wholesale Trade Survey (April 2011), 

Annual Retail Trade Survey (March 2011), and the Annual Revision of the Monthly Retail and Food 

Services: Sales and Inventories (April 2011), as well as data from the Census Bureau’s 2007 Economic 
- 5 -

Census. The labor productivity and output series for all industries have been revised for 2009 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 2011. All of the measures for 2010 in this 

release are preliminary and subject to revision. 

Additional Information: 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. 

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. 
2010 

NAICS Industry Employment Output Labor Unit labor

code (thousands) per hour Output Hours compensation costs

Wholesale Trade

42 Wholesale trade 5628 9.0 7.2 -1.7 1.3 -5.5

423 Durable goods 2807 14.4 11.5 -2.5 0.0 -10.3

4231 Motor vehicles and parts 318 21.7 19.0 -2.2 0.5 -15.5

4232 Furniture and furnishings 98 10.1 6.0 -3.7 0.6 -5.2

4233 Lumber and construction supplies 192 11.1 3.1 -7.2 -6.1 -9.0

4234 Commercial equipment 615 15.4 11.4 -3.4 -0.3 -10.5

4235 Metals and minerals 111 8.3 4.9 -3.1 -1.2 -5.8

4236 Electric goods 320 20.4 16.9 -2.9 0.2 -14.3

4237 Hardware and plumbing 222 11.6 6.3 -4.7 -3.0 -8.8

4238 Machinery and supplies 621 11.1 8.7 -2.2 0.7 -7.4

4239 Miscellaneous durable goods 308 0.0 4.3 4.3 5.8 1.4

424 Nondurable goods 2011 3.7 2.8 -0.8 1.3 -1.5

4241 Paper and paper products 128 -2.6 -2.6 0.0 -2.0 0.6

4242 Druggists' goods 193 1.8 -2.3 -4.1 -2.8 -0.5

4243 Apparel and piece goods 149 1.0 3.3 2.2 13.8 10.2

4244 Grocery and related products 735 8.2 6.4 -1.7 1.6 -4.5

4245 Farm product raw materials 81 9.5 12.4 2.6 2.9 -8.4

4246 Chemicals 122 13.8 7.6 -5.5 -0.2 -7.3

4247 Petroleum 97 -0.8 1.3 2.1 -2.0 -3.3

4248 Alcoholic beverages 162 -6.8 -0.3 7.0 1.9 2.2

4249 Miscellaneous nondurable goods 344 2.3 0.3 -2.0 1.5 1.2

425 Electronic markets and agents and brokers 810 9.2 8.5 -0.6 5.8 -2.5

4251 Electronic markets and agents and brokers 810 9.2 8.5 -0.6 5.8 -2.5

Retail Trade

44-45 Retail trade 15300 3.9 4.5 0.5 1.2 -3.2

441 Motor vehicle and parts dealers 1685 4.4 4.6 0.2 3.6 -1.0

4411 Automobile dealers 1040 6.6 5.5 -1.0 4.1 -1.3

4412 Other motor vehicle dealers 133 7.1 -1.5 -8.1 -4.5 -3.1

4413 Auto parts, accessories, and tire stores 512 -3.1 1.5 4.8 4.8 3.3

442 Furniture and home furnishings stores 481 5.2 6.0 0.7 -0.1 -5.7

4421 Furniture stores 233 3.9 6.8 2.8 -0.1 -6.5

4422 Home furnishings stores 248 6.8 5.1 -1.6 0.0 -4.9

443 Electronics and appliance stores 520 5.7 11.6 5.6 7.0 -4.2

4431 Electronics and appliance stores 520 5.7 11.6 5.6 7.0 -4.2

444 Building material and garden supply stores 1168 10.6 6.9 -3.4 -2.8 -9.1

4441 Building material and supplies dealers 1024 9.9 6.8 -2.9 -3.1 -9.3

4442 Lawn and garden equipment and supplies stores 144 16.0 7.7 -7.2 -0.2 -7.3

445 Food and beverage stores 2912 1.6 1.3 -0.3 0.2 -1.1

4451 Grocery stores 2522 1.2 1.2 0.0 0.3 -0.8

4452 Specialty food stores 239 -0.5 0.4 0.9 3.7 3.3

4453 Beer, wine and liquor stores 151 11.7 2.9 -7.9 -7.7 -10.3

446 Health and personal care stores 1009 1.3 1.3 0.0 0.7 -0.6

4461 Health and personal care stores 1009 1.3 1.3 0.0 0.7 -0.6

447 Gasoline stations 828 1.5 1.0 -0.5 -0.3 -1.3

4471 Gasoline stations 828 1.5 1.0 -0.5 -0.3 -1.3

448 Clothing and clothing accessories stores 1480 4.9 4.8 -0.1 1.4 -3.2

4481 Clothing stores 1114 3.2 5.1 1.8 1.5 -3.5

4482 Shoe stores 189 5.8 5.0 -0.8 5.7 0.7

4483 Jewelry, luggage, and leather goods stores 176 11.2 2.9 -7.5 -1.3 -4.1

Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2009-2010

Percent change, 2009-2010
2010 

NAICS Industry Employment Output Labor Unit labor

code (thousands) per hour Output Hours compensation costs

451 Sporting goods, hobby, book, and music stores 669 9.3 5.6 -3.4 2.8 -2.6

4511 Sporting goods and musical instrument stores 515 8.6 8.1 -0.4 6.2 -1.7

4512 Book, periodical, and music stores 155 11.7 -1.9 -12.2 -6.8 -5.0

452 General merchandise stores 2983 0.3 4.2 3.9 0.6 -3.4

4521 Department stores 1488 -2.8 1.2 4.2 1.2 0.0

4529 Other general merchandise stores 1495 1.9 5.6 3.6 0.1 -5.2

453 Miscellaneous store retailers 934 6.9 5.6 -1.2 1.5 -3.8

4531 Florists 93 17.9 10.8 -6.1 7.1 -3.3

4532 Office supplies, stationery and gift stores 335 4.0 0.2 -3.6 0.3 0.1

4533 Used merchandise stores 174 16.5 19.3 2.4 -0.7 -16.8

4539 Other miscellaneous store retailers 332 5.4 5.8 0.4 2.4 -3.2

454 Nonstore retailers 633 8.3 12.2 3.5 0.9 -10.0

4541 Electronic shopping and mail-order houses 304 10.9 16.2 4.8 7.1 -7.8

4542 Vending machine operators 52 11.5 5.8 -5.1 -11.5 -16.4

4543 Direct selling establishments 277 -4.0 -0.1 4.0 -5.7 -5.6

Food Services and Drinking Places 

722 Food services and drinking places 9566 1.9 1.3 -0.6 3.0 1.6

7221 Full-service restaurants 4500 2.8 1.9 -0.8 3.5 1.6

7222 Limited-service eating places 4041 2.7 1.7 -0.9 2.5 0.7

7223 Special food services 661 -4.9 -3.5 1.6 1.8 5.4

7224 Drinking places, alcoholic beverages 364 -1.0 1.1 2.1 4.0 2.9

Table 1. Percent change in output per hour, output, hours, compensation, and unit labor costs, 2009-2010

Percent change, 2009-2010
NAICS Industry Output Labor Unit labor

code per hour Output Hours compensation costs

Wholesale Trade

42 Wholesale trade 3.2 3.4 0.2 4.1 0.7

423 Durable goods 4.9 4.8 -0.1 3.9 -0.8

4231 Motor vehicles and parts 3.3 2.7 -0.6 3.1 0.4

4232 Furniture and furnishings 1.9 1.2 -0.7 3.5 2.3

4233 Lumber and construction supplies 1.5 1.4 0.0 2.4 0.9

4234 Commercial equipment 14.7 14.9 0.1 4.5 -9.1

4235 Metals and minerals -0.9 -1.3 -0.4 3.4 4.8

4236 Electric goods 8.5 7.8 -0.7 4.1 -3.4

4237 Hardware and plumbing 1.6 1.9 0.3 4.0 2.1

4238 Machinery and supplies 1.9 1.6 -0.3 3.7 2.1

4239 Miscellaneous durable goods 0.8 1.6 0.8 4.8 3.1

424 Nondurable goods 1.5 1.6 0.0 4.3 2.8

4241 Paper and paper products 1.3 0.3 -1.0 2.9 2.6

4242 Druggists' goods 3.9 5.3 1.3 8.7 3.3

4243 Apparel and piece goods 2.5 2.1 -0.4 3.8 1.7

4244 Grocery and related products 1.4 2.0 0.6 4.4 2.4

4245 Farm product raw materials 2.1 -0.1 -2.1 4.0 4.1

4246 Chemicals 0.6 0.8 0.2 4.0 3.2

4247 Petroleum 2.5 0.3 -2.2 2.6 2.3

4248 Alcoholic beverages 0.0 1.8 1.8 4.8 3.0

4249 Miscellaneous nondurable goods 0.1 -0.3 -0.3 3.2 3.4

425 Electronic markets and agents and brokers 1.8 4.0 2.2 4.5 0.5

4251 Electronic markets and agents and brokers 1.8 4.0 2.2 4.5 0.5

Retail Trade

44-45 Retail trade 2.9 3.3 0.3 3.2 0.0

441 Motor vehicle and parts dealers 1.9 2.1 0.2 3.0 0.9

4411 Automobile dealers 2.0 2.0 0.1 2.9 0.8

4412 Other motor vehicle dealers 2.5 2.9 0.4 4.0 1.1

4413 Auto parts, accessories, and tire stores 1.4 2.0 0.5 3.2 1.2

442 Furniture and home furnishings stores 3.8 3.3 -0.4 2.5 -0.8

4421 Furniture stores 3.1 2.8 -0.3 2.1 -0.7

4422 Home furnishings stores 4.6 3.9 -0.6 2.9 -1.0

443 Electronics and appliance stores 13.1 14.0 0.9 4.1 -8.7

4431 Electronics and appliance stores 13.1 14.0 0.9 4.1 -8.7

444 Building material and garden supply stores 2.8 3.5 0.7 3.3 -0.2

4441 Building material and supplies dealers 2.5 3.5 0.9 3.5 0.0

4442 Lawn and garden equipment and supplies stores 4.4 3.4 -1.0 2.1 -1.3

445 Food and beverage stores 0.4 0.2 -0.2 3.0 2.8

4451 Grocery stores 0.2 0.1 -0.1 3.2 3.1

4452 Specialty food stores 0.0 -0.6 -0.5 1.7 2.3

4453 Beer, wine and liquor stores 2.4 0.8 -1.5 1.7 0.9

446 Health and personal care stores 2.4 3.5 1.1 5.0 1.4

4461 Health and personal care stores 2.4 3.5 1.1 5.0 1.4

447 Gasoline stations 2.1 1.2 -0.8 2.3 1.1

4471 Gasoline stations 2.1 1.2 -0.8 2.3 1.1

448 Clothing and clothing accessories stores 4.6 4.1 -0.5 2.6 -1.3

4481 Clothing stores 4.9 4.7 -0.2 2.9 -1.7

4482 Shoe stores 3.3 2.2 -1.1 1.7 -0.5

4483 Jewelry, luggage, and leather goods stores 3.9 2.8 -1.0 2.4 -0.3

Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2010

Average annual percent change, 1987-2010
NAICS Industry Output Labor Unit labor

code per hour Output Hours compensation costs

451 Sporting goods, hobby, book, and music stores 4.2 4.1 -0.1 3.3 -0.8

4511 Sporting goods and musical instrument stores 4.9 5.1 0.3 3.7 -1.4

4512 Book, periodical, and music stores 2.6 1.6 -1.0 2.3 0.6

452 General merchandise stores 3.3 5.0 1.7 3.7 -1.2

4521 Department stores 0.6 1.7 1.1 2.4 0.7

4529 Other general merchandise stores 6.3 8.8 2.3 5.4 -3.1

453 Miscellaneous store retailers 3.8 3.5 -0.2 2.2 -1.3

4531 Florists 3.5 0.1 -3.4 0.3 0.2

4532 Office supplies, stationery and gift stores 5.9 5.0 -0.9 2.2 -2.6

4533 Used merchandise stores 5.0 6.2 1.1 3.6 -2.4

4539 Other miscellaneous store retailers 1.4 2.5 1.1 2.3 -0.2

454 Nonstore retailers 8.7 8.9 0.2 3.5 -5.0

4541 Electronic shopping and mail-order houses 11.3 15.2 3.5 7.4 -6.7

4542 Vending machine operators 0.8 -2.0 -2.8 0.4 2.4

4543 Direct selling establishments 2.9 1.3 -1.5 1.0 -0.3

Food Services and Drinking Places 

722 Food services and drinking places 0.7 1.9 1.3 5.1 3.1

7221 Full-service restaurants 0.7 2.0 1.3 5.9 3.8

7222 Limited-service eating places 0.7 2.2 1.5 4.9 2.7

7223 Special food services 1.1 2.1 1.0 3.5 1.3

7224 Drinking places, alcoholic beverages -0.4 -0.7 -0.3 2.3 3.0

Table 2. Average annual percent change in output per hour, output, hours, compensation, and unit labor costs, 1987-2010

Average annual percent change, 1987-2010