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. 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.
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.
