Bureau of Labor Statistics > Productivity > Publications > Productivity Highlights

Wholesale and Retail Trade Industries Labor Productivity

On May 25, 2023, the Bureau of Labor Statistics (BLS) updated measures for 46 detailed industries Productivity and Costs by Industry: Wholesale Trade and Retail Trade Industries - 2022. Chart 1 from the news release illustrates the NAICS four–digit trade industries with the largest increases and decreases in labor productivity in 2022 as well as their employment. The six industries with the highest productivity growth reported increases in output while all six industries with the largest declines reported growth in hours worked.

This horizontal bar chart shows the six industries with the largest positive productivity growth and the six industries with the largest negative productivity growth in 2022 along with their respective industry employment values in thousands. Chart data are included in the linked table below.

Chart 1. Largest changes in productivity in four-digit NAICS wholesale and retail trade industries, 2022
NAICS code	Industry	Percent Change in Productivity (%)	Number of Workers (in thousands, [1,000s])
4531	Florists	22.5	74.1
4483	Jewelry, luggage, and leather goods stores	20.4	141.0
4233	Lumber and const. supply merchant wholesalers	17.2	259.7
4539	Other miscellaneous store retailers	17.2	398.6
4543	Direct selling establishments	16.2	173.0
4541	Electronic shopping and mail-order houses	9.9	504.9
4422	Home furnishings stores	-9.3	246.8
4247	Petroleum merchant wholesalers	-9.5	99.6
4542	Vending machine operators	-11.6	43.8
4453	Beer, wine, and liquor stores	-11.8	194.7
4411	Automobile dealers	-12.0	1292.7
4421	Furniture stores	-12.1	232.8
Source: U.S. Bureau of Labor Statistics

Chart 1 data. Largest changes in productivity in four-digit NAICS wholesale and retail trade industries, 2022

In 2022, the wholesale trade sector^[1] comprised 5.96 million workers^[2], roughly 3.9 percent of nonfarm businesses sector payroll employment, and 6.3 percent of U.S. Gross Domestic Product (GDP).^[3] The retail trade sector^[4] employed approximately 15.48 million people, or 10.1 percent of all total nonfarm employees in 2022, and contributed 5.8 percent to GDP.

This webpage takes a closer look at the drivers behind recent output trends, with a particular emphasis on the role of price changes over time.

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Prices on the rise

After experiencing growth in 2020 and 2021, productivity declined in the wholesale and retail trade sectors in 2022. Yet, productivity declines in the two sectors were brought on by very different dynamics. Chart 2 highlights recent output, hours worked, and productivity trends in the two trade sectors. In the wholesale trade sector (NAICS 42), 2022 was the first year since 2011 that productivity fell and growth in hours worked outpaced output growth. Labor productivity declined 1.2 percent as output (+1.6 percent) rose more slowly than hours worked (+2.9 percent). In the retail trade sector (NAICS 44-45), output fell faster (-1.3 percent) than hours worked (-1.0 percent) leading to a 0.4 percent drop in labor productivity in 2022. Output, hours, and productivity have not all declined in the same year for the retail trade sector since 2008.

Chart 2 is a bar and marker chart depicting the annual percent change of output, hours, and productivity for wholesale and retail trade sectors from 2019 to 2022. Chart data are included in the linked table below.

Chart 2. Annual Percent Changes Wholesale and Retail Trade Output, Hours, and Productivity, 2019-22
Sector	Year	Real Sectoral Output (%)	Hours Worked (%)	Labor Productivity (%)
Wholesale Trade	2019	0.7%	0.6%	0.2%
Wholesale Trade	2020	-2.9%	-6.3%	3.7%
Wholesale Trade	2021	4.6%	3.3%	1.3%
Wholesale Trade	2022	1.6%	2.9%	-1.2%
Retail Trade	2019	2.8%	-2.6%	5.6%
Retail Trade	2020	3.8%	-4.8%	9.0%
Retail Trade	2021	9.6%	3.3%	6.1%
Retail Trade	2022	-1.3%	-1.0%	-0.4%
Source: U.S. Bureau of Labor Statistics

Chart 2 data. Annual Percent Changes Wholesale and Retail Trade Output, Hours, and Productivity, 2019-22

So, what happened to output in 2022? If we break the measure down further, the answer seems to be a story of prices.

Contributing to its slower output growth, the wholesale trade sector experienced the largest growth in prices (+12.2 percent) in 2022 since measurement began in 1987. The wholesale trade sector consists of 19 NAICS four-digit industries and 3 three-digit industries. In all but 1 of four-digit wholesale industries, prices rose. Lumber and other construction materials merchant wholesalers (NAICS 4233) were the only exception with prices falling 7.5 percent. Adding to the notable changes in 2022, 9 of the 19 four-digit industries and 2 of the 3 NAICS three-digit industries had record price growth. Petroleum (NAICS 4247) prices rose by 51.8 percent in 2022, the largest increase in the wholesale sector by far. Despite the rise in prices, real sectoral output grew in 12 of the 22 wholesale industries as sectoral output rose across the board.

Chart 3 is a bar and line chart depicting the annual percent change of output and prices for the wholesale sector from 1988 to 2022. Chart data are included in the linked table below.

Chart 3. Annual Percent Changes in Wholesale Trade Output and Prices, 1988-2022
Year	Sectoral Output (%)	Sectoral Output Price Deflator (%)	Real Sectoral Output (%)
1988	10.8	4.0	6.6
1989	7.4	3.3	3.9
1990	4.4	1.4	3.0
1991	0.0	0.3	-0.3
1992	6.4	0.2	6.3
1993	3.8	0.5	3.4
1994	6.2	0.8	5.4
1995	7.4	1.4	5.9
1996	3.5	-0.9	4.5
1997	2.5	-2.9	5.5
1998	1.8	-3.4	5.4
1999	6.2	-2.3	8.8
2000	5.7	-0.5	6.2
2001	-4.2	-1.7	-2.6
2002	-0.1	-1.6	1.6
2003	6.0	2.1	3.8
2004	11.4	4.4	6.7
2005	8.6	4.2	4.2
2006	7.8	3.2	4.5
2007	6.2	3.5	2.7
2008	2.0	7.2	-4.9
2009	-15.4	-6.5	-9.5
2010	10.1	6.1	3.8
2011	9.8	7.8	1.9
2012	4.7	1.1	3.5
2013	3.4	-0.1	3.5
2014	3.4	0.1	3.3
2015	-2.5	-6.0	3.7
2016	-0.9	-2.4	1.6
2017	4.9	3.7	1.2
2018	6.0	4.2	1.7
2019	0.0	-0.7	0.7
2020	-5.0	-2.2	-2.9
2021	17.2	12.0	4.6
2022	14.0	12.2	1.6
Source: U.S. Bureau of Labor Statistics

Chart 3 data. Annual Percent Changes in Wholesale Trade Output and Prices, 1988-2022

In 2022, the retail trade sector also had the largest growth in prices in its series (+10.2 percent). The retail trade sector includes 27 NAICS four-digit industries and 12 three-digit industries. Outside of declines in electronics and appliance stores (NAICS 4431), prices rose in all retail four-digit industries. Like wholesale trade, there were several industries with the highest price growth in the history of the series (going back to 1987). Ten of the three-digit and 20 of the four-digit NAICS industries had record price growth. Gasoline stations (NAICS 4471) had the largest increase, with prices rising 28.3 percent. Real output declined in 21 of the 39 retail industries as the growth in prices outpaced the growth in sectoral output.

Chart 4 is a bar and line chart depicting the annual percent change of output and prices for the retail sector from 1988 to 2022. Chart data are included in the linked table below.

Chart 4. Annual Percent Changes in Retail Trade Output and Prices, 1988-2022
Year	Sectoral Output (%)	Sectoral Output Price Deflator (%)	Real Sectoral Output (%)
1988	7.3	2.7	4.5
1989	6.3	3.6	2.7
1990	4.6	3.7	0.9
1991	0.3	2.2	-1.9
1992	5.5	1.3	4.1
1993	7.0	1.2	5.7
1994	8.7	1.2	7.4
1995	5.3	1.5	3.8
1996	6.5	1.2	5.3
1997	4.5	0.1	4.4
1998	4.6	-1.6	6.3
1999	8.6	-0.1	8.7
2000	6.4	1.9	4.4
2001	2.6	-0.1	2.7
2002	2.2	-1.3	3.5
2003	4.3	-0.3	4.6
2004	6.4	1.1	5.3
2005	6.2	2.7	3.5
2006	4.9	1.7	3.2
2007	3.2	1.0	2.2
2008	-1.5	3.2	-4.5
2009	-8.2	-3.1	-5.3
2010	5.7	2.5	3.1
2011	7.5	4.4	2.9
2012	4.9	1.5	3.3
2013	3.6	-0.1	3.8
2014	4.1	0.2	3.9
2015	1.8	-2.9	4.9
2016	2.6	-1.6	4.3
2017	4.0	0.8	3.1
2018	4.2	1.3	2.9
2019	2.8	-0.1	2.8
2020	3.3	-0.5	3.8
2021	17.1	6.8	9.6
2022	8.8	10.2	-1.3
Source: U.S. Bureau of Labor Statistics

Chart 4 data. Annual Percent Changes in Retail Trade Output and Prices, 1988-2022

Braking news in automobile dealers

2022 was a tumultuous year for automobile dealers (NAICS 4411). Productivity fell for the first time since the Great Recession due to hours increasing while output declined. Productivity growth was positive in 2020 and 2021 but for different reasons. In 2020, hours and output declined but the drop in hours was greater than the decline in output. In 2021, output and hours both rebounded but output grew faster than hours worked.

Chart 5 is a bar and line chart depicting the annual percent change of output, hours, and productivity for automobile dealers 2007 to 2022. Chart data are included in the linked table below.

Chart 5. Annual changes in output, hours, and productivity for automobile dealers (NAICS 4411), 2007-22
Year	Sectoral Output (%)	Hours Worked (%)	Labor Productivity (%)
2007	2.2	0.3	1.8
2008	-14.7	-6.6	-8.7
2009	-14.1	-12	-2.4
2010	6.4	-0.3	6.7
2011	6.7	5.8	0.8
2012	8.4	5.6	2.7
2013	8.9	2	6.8
2014	7.3	2.9	4.3
2015	8	4.5	3.3
2016	5.4	2.1	3.2
2017	4.4	1	3.3
2018	1.3	0.5	0.8
2019	1.8	-1.1	3
2020	-5.3	-10.8	6.2
2021	10.5	4.4	5.8
2022	-8.8	3.6	-12
Source: U.S. Bureau of Labor Statistics

Chart 5 data. Annual changes in output, hours, and productivity for automobile dealers (NAICS 4411), 2007-22

The drop in output in 2022 was a result of several factors including inventories, prices, and interest rates. Inventories at motor vehicle dealers were low due in part to the chip shortage and supply chain disruptions.^[5] Prices for automobile dealers increased over ten percent in both 2021 and 2022 which may have influenced consumer behavior to purchase fewer vehicles and encouraged people to hold onto their vehicles longer. The average age of U.S. cars and light trucks climbed to a record 12.5 years in 2022 adding 3 months from the prior year.^[6]

Chart 6 is a bar and line chart depicting the annual percent change of output and prices for automobile dealers 1988 to 2022. Chart data are included in the linked table below.

Chart 6. Annual Percent Changes in Output and Prices for Automobile Dealers (NAICS 4411), 1988-2022
Year	Sectoral Output (%)	Sectoral Output Price Deflator (%)	Real Sectoral Output (%)
1988	8.7	2.6	6.0
1989	3.9	2.4	1.5
1990	0.3	1.0	-0.7
1991	-4.0	2.9	-6.8
1992	10.5	3.2	7.1
1993	13.6	4.5	8.7
1994	15.0	4.2	10.3
1995	7.2	5.2	1.8
1996	8.4	1.7	6.7
1997	3.8	-0.7	4.5
1998	5.1	0.4	4.7
1999	11.5	0.2	11.3
2000	3.9	1.0	2.9
2001	2.9	0.7	2.2
2002	-0.1	-2.0	1.9
2003	2.2	-2.7	5.1
2004	2.2	-2.5	4.8
2005	2.0	2.2	-0.2
2006	1.0	0.5	0.6
2007	0.9	-1.3	2.2
2008	-15.4	-0.8	-14.7
2009	-15.0	-1.0	-14.1
2010	12.5	5.8	6.4
2011	10.2	3.3	6.7
2012	10.0	1.4	8.4
2013	9.2	0.3	8.9
2014	7.2	-0.1	7.3
2015	7.8	-0.2	8.0
2016	4.5	-0.8	5.4
2017	2.8	-1.5	4.4
2018	1.5	0.2	1.3
2019	2.8	1.0	1.8
2020	-3.9	1.5	-5.3
2021	23.6	11.9	10.5
2022	2.3	12.2	-8.8
Source: U.S. Bureau of Labor Statistics

Chart 6 data. Annual Percent Changes in Output and Prices for Automobile Dealers (NAICS 4411), 1988-2022

Interest rates were also a factor in the lower sales for automobiles in 2022. Though monthly interest rates on 60-month new car loans remained largely flat through 2021, they jumped from about 4 percent to just over 6 percent through 2022.

Chart 7 is a line chart depicting the monthly interest rates on 60-month new car loans in the U.S. from 2014-2022. Chart data are included in the linked table below.

Chart 7. Monthly interest rates on 60-month new car loans in the U.S., 2014-2022
Month Year	Interest Rate (%)
Feb 2014	4.37
May 2014	4.46
Aug 2014	4.11
Nov 2014	4.07
Feb 2015	4.27
May 2015	4.21
Aug 2015	4.25
Nov 2015	4.05
Feb 2016	4.11
May 2016	4.15
Aug 2016	4.25
Nov 2016	4.05
Feb 2017	4.21
May 2017	4.24
Aug 2017	4.36
Nov 2017	4.51
Feb 2018	4.75
May 2018	4.99
Aug 2018	4.96
Nov 2018	5.36
Feb 2019	5.24
May 2019	5.36
Aug 2019	5.27
Nov 2019	5.37
Feb 2020	5.15
May 2020	5.14
Aug 2020	4.98
Nov 2020	4.8
Feb 2021	4.96
May 2021	5.05
Aug 2021	4.6
Nov 2021	4.67
Feb 2022	4.52
May 2022	4.85
Aug 2022	5.5
Nov 2022	6.55
Source: Board of Governors of the Federal Reserve System (US)

Chart 7 data. Monthly interest rates on 60-month new car loans in the U.S., 2014-2022

Hammering output in building material and supplies dealers

Building material and supplies dealers (NAICS 4441) showed an overall output decline even as their revenue continued to increase post-pandemic. The price surges in 2021 and 2022 increased overall industry revenue even as fewer goods crossed the checkout counter.

Consumers spent money on home improvements during the pandemic, according to Harvard University’s Joint Center for Housing Studies.^[7] Coupled with the disruption of supply chains for many construction materials, this created product shortages and prices rose precipitously.^[8]

Though revenue rose nearly seven percent in 2022 in this industry, adjusting for the extreme price effects showed an overall real output decline. These price increases are the largest seen in this industry since the start of the series in 1987.

Chart 8 is a bar and line chart depicting the annual percent change of output and prices for building material and supplies dealers from 1988 to 2022. Chart data are included in the linked table below.

Chart 8. Annual Percent Changes in Output and Prices for Building Material and Supplies Dealers (NAICS 4441), 1988-2022
Year	Sectoral Output (%)	Sectoral Output Price Deflator (%)	Real Sectoral Output (%)
1988	7.9	1.7	6.0
1989	2.7	2.0	0.7
1990	2.8	1.4	1.4
1991	-3.9	2.7	-6.4
1992	8.7	0.7	7.9
1993	9.2	1.0	8.1
1994	12.2	0.8	11.2
1995	4.4	1.5	2.8
1996	6.7	1.1	5.6
1997	7.7	2.1	5.5
1998	6.3	-2.3	8.8
1999	9.1	-1.9	11.3
2000	5.2	0.5	4.7
2001	4.7	-0.3	5.0
2002	4.9	-0.9	5.8
2003	6.3	-0.4	6.8
2004	13.1	3.8	9.0
2005	9.7	2.9	6.6
2006	4.5	1.8	2.6
2007	-5.2	0.0	-5.2
2008	-7.3	0.9	-8.1
2009	-13.5	0.3	-13.8
2010	-0.8	-0.9	0.2
2011	3.1	1.1	2.0
2012	4.1	2.1	1.9
2013	6.4	2.1	4.2
2014	4.8	1.4	3.4
2015	4.1	-0.7	4.9
2016	4.8	-0.7	5.6
2017	3.5	1.6	1.9
2018	5.4	2.7	2.6
2019	1.4	0.4	0.9
2020	12.5	2.7	9.5
2021	13.6	11.7	1.6
2022	6.9	11.5	-4.1
Source: U.S. Bureau of Labor Statistics

Chart 8 data. Annual Percent Changes in Output and Prices for Building Material and Supplies Dealers (NAICS 4441), 1988-2022

Fewer hours were worked in this industry in 2022 as the home improvement boom continued to subside, but the decline in hours was exceeded by the decline in output, leading to an overall decrease in labor productivity in the industry.

Chart 9 is a bar and line chart depicting the annual percent change of output, hours, and productivity for building material and supplies dealers from 1988 to 2022. Chart data are included in the linked table below.

Chart 9. Annual Percent Changes in Output, Hours, and Productivity for Building Material and Supplies Dealers (NAICS 4441), 1988-2022
Year	Real Sectoral Output (%)	Hours Worked (%)	Labor Productivity (%)
1988	6.0	3.7	2.3
1989	0.7	0.1	0.6
1990	1.4	-0.6	2.0
1991	-6.4	-2.7	-3.8
1992	7.9	2.0	5.7
1993	8.1	3.0	5.0
1994	11.2	4.6	6.3
1995	2.8	2.5	0.4
1996	5.6	1.1	4.4
1997	5.5	2.0	3.4
1998	8.8	0.2	8.5
1999	11.3	4.5	6.5
2000	4.7	5.5	-0.8
2001	5.0	2.0	3.0
2002	5.8	2.6	3.2
2003	6.8	2.6	4.1
2004	9.0	3.4	5.4
2005	6.6	6.4	0.2
2006	2.6	1.5	1.1
2007	-5.2	-4.4	-0.9
2008	-8.1	-5.1	-3.2
2009	-13.8	-8.1	-6.2
2010	0.2	-3.8	4.1
2011	2.0	1.5	0.5
2012	1.9	0.7	1.2
2013	4.2	-0.7	4.9
2014	3.4	-3.6	7.3
2015	4.9	1.7	3.1
2016	5.6	-1.0	6.6
2017	1.9	-0.5	2.4
2018	2.6	1.0	1.6
2019	0.9	0.1	0.8
2020	9.5	4.7	4.6
2021	1.6	-0.8	2.5
2022	-4.1	-2.7	-1.4
Source: U.S. Bureau of Labor Statistics

Chart 9 data. Annual Percent Changes in Output, Hours, and Productivity for Building Material and Supplies Dealers (NAICS 4441), 1988-2022

Related resources

Industries at a Glance: Wholesale Trade

Industries at a Glance: Retail Trade

Notes

^[1] The wholesale trade sector refers to the 2-digit North American Industry Classification System (NAICS) code 42 Wholesale Trade.

^[2] Source: BLS Current Employment Statistics Databases

^[3] Source: BEA Gross Domestic Product By Industry. Using the interactive data tool, select Value Added by Industry, then Value added by Industry as a Percentage of Gross Domestic Product.

^[4] The retail trade sector refers to the 2-digit North American Industry Classification System (NAICS) code 44-45 Retail Trade.

^[5] Source: ACV Actions blog post on Car Chip Shortage-What Dealers Need to Know in 2022, May 27, 2022

^[6] Source: S&P Global Mobility, May 15, 2023

^[7] Sources: Harvard University’s Joint Center for Housing Studies, March 25, 2021

^[8] Source: White House Council of Economic Advisors blog post on Why the Pandemic has Disrupted Supply Chains, June 17, 2021

Last Modified Date: August 7, 2023