Wholesale Trade: NAICS 42

About the Wholesale Trade sector

The wholesale trade sector is part of the trade, transportation, and utilities supersector.

The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. The merchandise described in this sector includes the outputs of agriculture, mining, manufacturing, and certain information industries, such as publishing.

The wholesaling process is an intermediate step in the distribution of merchandise. Wholesalers are organized to sell or arrange the purchase or sale of (a) goods for resale (i.e., goods sold to other wholesalers or retailers), (b) capital or durable nonconsumer goods, and (c) raw and intermediate materials and supplies used in production.

Wholesalers sell merchandise to other businesses and normally operate from a warehouse or office. These warehouses and offices are characterized by having little or no display of merchandise. In addition, neither the design nor the location of the premises is intended to solicit walk-in traffic. Wholesalers do not normally use advertising directed to the general public. Customers are generally reached initially via telephone, in-person marketing, or by specialized advertising that may include Internet and other electronic means. Follow-up orders are either vendor-initiated or client-initiated, generally based on previous sales, and typically exhibit strong ties between sellers and buyers. In fact, transactions are often conducted between wholesalers and clients that have long-standing business relationships.

North American Industry Classification System

The wholesale trade sector consists of these subsectors:

Workforce Statistics

This section provides information relating to employment and unemployment in wholesale trade. While most data are obtained from employer or establishment surveys, information on industry unemployment comes from a national survey of households. The following tables present an overview of the industry including the number of jobs, the unemployment rate of those previously employed in the industry, job openings and labor turnover, union membership and representation, gross job gains and losses, mass layoffs, data for occupations common to the industry, and projections of occupational employment change.

Employment, Unemployment, Layoffs, and Openings, Hires, and Separations

Data series Back
data
Jun.
2008
Jul.
2008
Aug.
2008
Sep.
2008

Employment (in thousands)

 

Employment, all employees (seasonally adjusted)

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6,034.6 6,017.6 (P) 6,008.3 (P) 6,004.2

Employment, nonsupervisory workers (seasonally adjusted)

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4,899.1 4,884.4 (P) 4,875.2 (P) 4,866.2

Unemployment

 

Unemployment rate

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4.0% 4.5% 4.9% 5.3%

Layoffs

 

Mass layoff events

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15 22 27  

Initial claimants for unemployment benefits

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908 1,926 1,765  

Job openings, hires, and separations (in thousands)

 

Job openings

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119 126 (P) 118  

Hires

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183 149 (P) 132  

Separations

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205 142 (P) 179  

Footnotes
(P) Preliminary

(Source: Current Employment Statistics, Current Population Survey, Mass Layoff Statistics, Job Openings and Labor Turnover Survey)

Union Membership and Representation

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data
2004 2005 2006 2007

Union membership and representation

 

Members of unions (percent of wage and salary workers)

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4.6% 5.9% 4.9% 5.2%

Represented by unions (percent of wage and salary workers)

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5.2% 6.4% 5.2% 5.7%

(Source: Current Population Survey)

Dynamic Changes in Employment

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data
1st quarter
2007
2nd quarter
2007
3rd quarter
2007
4th quarter
2007

Dynamic changes in employment (in thousands)

 

Gross job gains

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314 318 305 320

Gross job losses

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296 300 303 300

(Source: Business Employment Dynamics)

Extended Mass Layoffs

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data
3rd quarter
2007
4th quarter
2007
1st quarter
2008
2nd quarter
2008

Extended mass layoff events

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19 38 (P) 35 (P) 30

Separations

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2,336 4,442 (P) 3,745 (P) 4,218

Initial claimants

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1,838 5,470 (P) 3,555 (P) 2,789

Footnotes
(P) Preliminary

(Source: Mass Layoff Statistics)

Employment by Occupation

Data series Employment,
2007

Laborers and freight, stock, and material movers, hand

417,910

Sales representatives, wholesale and manufacturing, except technical and scientific products

952,440

Sales representatives, wholesale and manufacturing, technical and scientific products

243,610

Truck drivers, heavy and tractor-trailer

209,520

Wholesale and retail buyers, except farm products

56,670

(Source: Occupational Employment Statistics)

Projections

For projected (future) employment estimates, see the National Employment Matrix, which includes employment estimates by industry and occupation for wholesale trade.

(Source: Office of Occupational Statistics and Employment Projections)

Earnings and Hours

This section presents data on employee earnings and weekly hours. The latest industry averages of hourly earnings and weekly hours for production or nonsupervisory employees, as well as weekly earnings by union membership status, are shown. In addition, recent hourly and annual earnings are shown for occupations commonly found in wholesale trade. This section also contains information on the average cost of benefits paid by employers, as well as recent rates of change in wages and total compensation.

Earnings and Hours of Production Workers

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data
Jun.
2008
Jul.
2008
Aug.
2008
Sep.
2008

Average hourly earnings

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$20.12 $20.16 (P) $20.30 (P) $20.25

Average weekly hours

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38.3 38.4 (P) 38.3 (P) 38.1

Footnotes
(P) Preliminary

(Source: Current Employment Statistics)

Union Membership and Representation

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data
Median weekly earnings
2004 2005 2006 2007

Union membership and representation

 

Full-time workers

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$677 $692 $725 $720

Members of unions

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$722 $678 $780 $756

Represented by unions

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$709 $676 $778 $753

Nonunion

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$674 $694 $720 $717

(Source: Current Population Survey)

Earnings by Occupation

Data series Wages, 2007
Hourly Annual
Median Mean Median Mean

Laborers and freight, stock, and material movers, hand

$10.98 $11.69 $22,840 $24,300

Sales representatives, wholesale and manufacturing, except technical and scientific products

$24.07 $28.97 $50,050 $60,250

Sales representatives, wholesale and manufacturing, technical and scientific products

$32.67 $36.76 $67,950 $76,450

Truck drivers, heavy and tractor-trailer

$16.93 $17.67 $35,220 $36,760

Wholesale and retail buyers, except farm products

$22.96 $26.24 $47,750 $54,580

(Source: Occupational Employment Statistics)

Employer Compensation Costs

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data
3rd quarter
2007
4th quarter
2007
1st quarter
2008
2nd quarter
2008

12-month percent change

 

Total compensation

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1.8% 2.3% 1.9% 2.5%

Wages and salaries

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1.3% 2.1% 1.3% 2.3%

(Source: Compensation Cost Trends)



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data
2nd quarter 2008
Compensation component
($ per hour worked)
Percent of total compensation

Compensation costs

 

Total compensation

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29.28 100.0

Wages and salaries

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20.54 70.2

Total benefits

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8.74 29.8

Insurance

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2.50 8.5

Retirement

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0.90 3.1

(Source: Compensation Cost Trends)

Work-related Fatalities, Injuries, and Illnesses

This section presents data for the industry on the number of workplace fatalities and the rates of workplace injuries and illnesses per 100 full-time workers in wholesale trade. An injury or illness is considered to be work-related if an event or exposure in the work environment either caused or contributed to the resulting condition or significantly aggravated a pre-existing condition.

Data series 2004 2005 2006 2007

Fatalities

 

Number of fatalities

206 209 222 (P) 197

Rate of injury and illness cases per 100 full-time workers

 

Total recordable cases

4.5 4.5 4.1  

Cases involving days away from work, job restriction, or transfer

2.7 2.7 2.5  

Cases involving days away from work

1.5 1.5 1.3  

Cases involving days of job transfer or restriction

1.2 1.2 1.2  

Footnotes
(P) Preliminary

(Source: Injuries, Illnesses, and Fatalities)

Prices

This section provides industry-specific pricing information. The producer price index measures the percentage change in prices that domestic producers receive for goods and services. The prices included in the producer price index are from the first commercial transaction.

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data
May
2008
Jun.
2008
Jul.
2008
Aug.
2008

Producer price index

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(P) 110.1 (P) 109.7 (P) 110.6 (P) 115.8

Percent change from previous month

 

(P) 4.2% (P) -0.4% (P) 0.8% (P) 4.7%

Footnotes
(P) Preliminary

(Source: Producer Price Indexes)

Workplace Trends

This section presents data on the number of establishments and the number of establishments experiencing job gains or job losses in wholesale trade. Also included in this section is information on productivity, presented as the rate of change in output per hour of workers in the industry.

Establishments

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data
1st quarter
2007
2nd quarter
2007
3rd quarter
2007
4th quarter
2007

Number of establishments

 

Private industry

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(P) 621,606 (P) 625,163 (P) 629,451 (P) 629,282

Local government

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(P) 30 (P) 33 (P) 34 (P) 35

State government

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(P) 7 (P) 6 (P) 4 (P) 4

Federal government

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(P) 1 (P) 1 (P) 1 (P) 1

Establishments with changes in employment (in thousands)

 

With job gains (seasonally adjusted)

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118 116 116 119

With job losses (seasonally adjusted)

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114 116 116 114

Footnotes
(P) Preliminary

(Source: Business Employment Dynamics, Quarterly Census of Employment and Wages)

Productivity

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data
2004 2005 2006 2007

Labor productivity index, output per hour

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134.807 135.783 138.562 141.499

Percent change from previous year

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5.7 0.7 2.0 2.1

Labor index, total labor hours

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96.445 99.123 101.449 103.136

Percent change from previous year

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0.2 2.8 2.3 1.7

Output index

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130.014 134.592 140.569 145.937

Percent change from previous year

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5.9 3.5 4.4 3.8

Unit labor costs index

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106.059 108.433 111.290 113.413

Percent change from previous year

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-0.9 2.2 2.6 1.9

(Source: Productivity and Costs)

Other BLS Resources

The Editor's Desk

See industry studies in the subject matter index of The Editor's Desk (Current Edition).

Career Guide to Industries

See wholesale trade in the Career Guide to Industries.

 

Data extracted on: October 08, 2008