Labor Productivity Up 4.3% in 2006 in Wholesale Trade

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September 4, 2007

Labor Productivity Up 4.3% in 2006 in Wholesale Trade

Labor productivity – defined as output per hour – increased 4.3% in wholesale trade in 2006, according to the U.S. Bureau of Labor Statistics.

From 1987 to 2006, labor productivity increased at the following average annual rate: 3.5% in wholesale trade.

2005-2006 Change in Wholesale Trade

Output per hour grew 4.3%, as output increased 6.6% and hours advanced 2.2%. Labor productivity rose 5.1% in durable merchant wholesalers (NAICS 423) and increased 2.7% in nondurable merchant wholesalers (NAICS 424).

Labor productivity rose in 15 of the 19 detailed wholesale trade industries in 2006, as output grew in 17 industries while hours fell in four. The largest increases in productivity – 13% and 11.8% - occurred in motor vehicles and parts wholesalers (NAICS 4231), and farm product raw materials wholesalers (NAICS 4245), respectively.

Unit labor costs declined in seven of the 19 detailed industries, but grew 0.5% in wholesale trade overall.

Long-Term Trends

Output per hour increased 3.5% per year, on average, between 1987 and 2006. Output grew 4.2% per year and hours rose 0.7% per year.

At the subsector level, productivity advanced 5.6% per year in durable merchant wholesale trade (NAICS 423), and increased 1.3% per year, on average, in nondurable merchant wholesale trade (NAICS 424).

Labor productivity increased in 17 of the 19 detailed industries. Commercial equipment wholesalers (NAICS 4234) and electric goods wholesalers (NAICS 4236), had the largest average annual increases in labor productivity of 15.6% and 9.1% per year, respectively. Output grew in all but one industry, while hours decreased in six industries.

Unit labor costs increased in all but three of the wholesale trade industries over the period, and rose 0.7% per year overall in the wholesale trade sector.

Measures for industries in other sectors have been published in separate releases and can be accessed online here.

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