* 2.1 percent in wholesale trade
* 3.7 percent in retail trade and
* -0.5 percent in food services and drinking places.
Output grew in each of these sectors in 2007. Hours increased in wholesale trade and in food services and drinking places, and declined in retail trade. Productivity rose in 34 of the 50 detailed industries studied. Unit labor costs declined in 22 of these industries, were unchanged in the retail trade sector, and increased in the wholesale trade and food services and drinking places sectors.
From a longer term perspective, labor productivity increased at the following average annual rates between 1987 and 2007:
* 3.3 percent in wholesale trade
* 3.3 percent in retail trade and
* 0.6 percent in food services and drinking places.
Output and hours increased in all of these sectors over the period. Productivity rose in 48 of the 50 detailed industries. Unit labor costs fell in 17 industries and in the retail trade sector, but grew in the wholesale trade and food services and drinking places sectors during the period.
2006-2007 change
Wholesale trade: Labor productivity increased 2.1 percent, as output grew 3.8 percent and hours rose 1.7 percent. Output per hour grew in 12 of the 19 detailed wholesale trade industries in 2007. Commercial equipment wholesalers (NAICS 4234) experienced the largest productivity gain, 13.7 percent. Unit labor costs fell in seven of the 19 detailed industries, but rose 1.9 percent in wholesale trade overall.
Retail trade: Labor productivity grew 3.7 percent as output increased 3.0 percent while hours fell 0.6 percent. Output per hour rose in 20 of the 27 detailed retail trade industries in 2007. The largest increases in productivity occurred in lawn and garden equipment and supplies stores (NAICS 4442) and electronics and appliance stores (NAICS 4431), 17.3 percent and 14.3 percent, respectively. Although unit labor costs fell in 14 of the 27 industries studied, unit labor costs in the retail sector as a whole were unchanged.
Food services and drinking places: Labor productivity fell 0.5 percent as output increased 1.7 percent and hours grew 2.2 percent. Two of the four industries in food services and drinking places registered productivity gains in 2007. The largest increase in productivity, 7.0 percent, occurred in drinking places (NAICS 7224). Unit labor costs grew in three of the four detailed industries and increased 4.6 percent in food services and drinking places overall.
Long-term trends
Wholesale trade: Labor productivity rose 3.3 percent per year, on average, between 1987 and 2007. Output increased 4.1 percent per year and hours grew 0.7 percent per year. Labor productivity rose in 17 of the 19 detailed industries. The fastest growth in output per hour occurred in commercial equipment wholesalers (NAICS 4234) and electric goods wholesalers (NAICS 4236), 15.6 percent and 8.9 percent per year, respectively. Unit labor costs rose in all but two of the wholesale trade industries over the period, and increased 0.9 percent per year overall in the wholesale trade sector.
Retail trade: Labor productivity increased an average 3.3 percent per year from 1987 to 2007, while output rose 4.1 percent per year and hours grew 0.7 percent. Output per hour increased in all 27 detailed industries. Labor productivity rose the fastest in electronics and appliance stores (NAICS 4431), 13.4 percent per year, followed by electronic shopping and mail-order houses (NAICS 4541) at 12.2 percent per year. Unit labor costs declined in 15 of the 27 industries in this sector during the time period and declined 0.2 percent per year in retail trade overall.
Food services and drinking places: Labor productivity grew 0.6 percent per year on average, as output increased 2.4 percent per year and hours grew 1.8 percent per year. Productivity increased in all of the food services and drinking places industries from 1987-2007. Unit labor costs also increased in each of the detailed industries, and rose 3.2 per year in food services and drinking places overall.
