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

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                   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. 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.
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.

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.)


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.