Productivity And Costs By Industry: — 2007-08-28

Labor productivity--defined as output per hour--increased in wholesale trade, retail trade, and food services and drinking places in 2006 as follows: 4.3 percent in wholesale trade 4.9 percent in retail trade and 2.4 percent in food services and drinking places. Output grew in each of these sectors in 2006. Hours rose in wholesale trade and in food services and drinking places, but fell in retail trade. Productivity advanced in 42 of the 50 industries studied, as output grew in 40 industries while hours declined in 21 industries. Unit labor costs fell in half of the detailed industries measured and in the retail trade sector, but increased in the wholesale trade and food services and drinking places sectors overall. (See table 1.) From 1987 to 2006, labor productivity increased at the following average annual rates: 3.5 percent in wholesale trade 3.4 percent in retail trade and 0.8 percent in food services and drinking places.