Labor Productivity in Food Distribution

Labor productivity--output per man-hour--in food distribution increased about 2.7 percent per year during 1948-63. This was about the same as the increase for the private nonfarm sector of the economy, but less than for the farm sector. The increase for food distribution was the result of a 2.4 percent per year increase in net output and a small decrease in man-hours. Distribution costs per unit of net output increased 52 percent from 1948 to 1963; unit labor costs rose 23 percent; and unit nonlabor costs increased 97 percent. The implicit price deflator for the private economy increased 30 percent.