WHOLESALE

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(50-51)

Employment change from last quarter	- 1.7
Employment change from year ago	+ 2.3
Wage change from year ago	+10.9

QUARTERLY

Wholesale employment fell 1.7% losing 1831 employees. SIC changes effective in January made a definite mark on employment activity within this industry. Durable Goods (50) dropped 2135 employees over last quarter with SIC changes reflecting the loss of approximately 2600 employees. The most impacted subsector was Electrical Goods, which dropped by 1927 employees. Some employment expansions over the quarter offset the displacement of about 2300 due to SIC changes. Three large firms were reclassified from this subsector moving around 1700 into TCPU and over 300 to Manufacturing. Motor Vehicles & Motor Vehicle Parts & Supplies lost 312 employees due to the reclassification of one company to Manufacturing. Machinery, Equipment & Supplies experienced the largest subsector gain up 238. SIC gains covering about 120 coupled with expansions, primarily in the distribution of industrial machinery and equipment, accounted for the quarterly increase.
Nondurable Goods (51) rose by 304 employees over last quarter. SIC changes into the sector covered 521 employees. One large company was reclassified from TCPU adding 232 to Beer, Wine & Distilled Alcoholic Beverages. Although Groceries & Related Products gained 388 from SIC changes the subsector advanced by only 156. Seasonal declines occurring particularly in the distribution of fresh fruits and vegetables offset gains in the Grocery & Related Products subsector.


ANNUAL

Positive employment gains experienced over 1997 were hurt due to extensive SIC code changes. Wholesale gains are now at 2336 up 2.3% over a year ago and had been at 4% or better up over 4000 employees through 1997. Durable Goods (50) added 455. A loss of 810 in electrical/electronic goods due to SIC changes hurt this sector. Over the year expansions and some SIC changes added 509 to Machinery, Equipment & Supplies.

Nondurables (51) increased by 1881 employees. Expansion by a major distributor helped employment grow by 568 in Drug, Drug Propietaries and Druggist Sundries. Growth and SIC changes adding 388 to Groceries & Related Products pushed its annual employment up 570. Employment in the distribution of Apparel, Piece Goods & Notions down 125 has fallen over the course of the year.

1997 SIC CHANGES

SIC changes seem to effect the Wholesale industry more than any other. The prevalent theory is that employers do not describe their business properly often indicating that sale of a product is the primary function of the company rather than the production of a product. Wholesale lost approximately 2085 employees and $15,589,566 in quarterly payroll as a result of reclassification.

Colorado Employment and Wages (ES202) First Quarter 1998