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Productivity up 80% in trade, food services in 2010

Labor productivity-defined as output per hour-rose in wholesale trade, retail trade, and food services in 2010, according to a report by the U.S. Bureau of Labor Statistics.

Productivity increased nine per cent in wholesale trade, 3.9 per cent in retail trade, and 1.9 per cent in food services. Productivity was higher in all three sectors in 2010 compared to 2009. Output grew in all three sectors, after declining in each in 2009. Hours fell in wholesale trade and in food services but rose in retail trade, after declining in each sector 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 in 2010 compared to the previous year. Unit labor costs declined in 36 of the detailed industries in 2010, compared to 15 in 2009.

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