WHOLESALE

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(50-51)

Employment change from last quarter	- 0.2
Employment change from year ago	+ 1.1
Wage change from year ago	+ 3.4

QUARTERLY

The Wholesale Trade industry dropped 0.2% since last quarter resulting in a loss of 2142 employees. Once again the industry suffered first quarter damage as a result of SIC changes. Durable Goods (50) dropped by 1173 employees. SIC changes out of the sector covered approximately 1585. All subsectors changed over the quarter and all changes were defined by SIC changes. The largest decline occurred in Motor Vehicles & Parts & Supplies down 683. SIC changes of 566 moved many employees to Retail; Auto Dealers-Service Stations. Electrical Goods fell by 363 employees. Approximately 305 were reclassified with one company, consisting of 228, changed to Manufacturing. Professional & Commercial Equipment & Supplies reported the largest increase up 496. Its gain does not mirror SIC changes of –368. Reporting changes by a large firm moved about 550 into this subsector from Manufacturing and a handful of businesses reported increases offsetting SIC losses.
Nondurable Goods fell by 968 employees. SIC changes moved about 650 out of the sector. Subsector activity was defined by SIC changes except for Groceries & Related Products. Groceries & Related Products fell by 540 over the quarter yet had SIC changes of only 186. The bulk of the decrease resulted from seasonal cutbacks in Fresh Fruits and Vegetables. Petroleum & Petroleum Products suffered the next largest loss falling by 456 over the quarter. SIC changes accounted for about 415 of the employment decrease with at least 336 moving to Mining. Misc Nondurable Goods added 200 with about 110 from SIC changes. Drug, Drug Proprietaries & Sundries also added 200 with about 130 from SIC changes.
ANNUAL

Despite the severe losses inflicted on this industry by SIC changes the Wholesale Trade industry has managed to remain in a positive position rising 1.1% over a year ago up 1103 employees. Over the twelve month period Durable Goods (50) employment rose by 742. The largest increase occurred in Professional & Commercial Equipment & Supplies up 573 due mainly to reporting changes instituted in first quarter by a large employer. Nondurables (51) added 361 over the year. Drug, Drug Proprietaries & Druggists Sundries reported the largest gain up 399. SIC changes into the sector in January account for almost 130 of the increase with the remainder from expansions occurring throughout the year.
1998 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 2236 employees and $25,708,856 in quarterly payroll as a result of reclassification.

Colorado Employment and Wages (ES202) First Quarter 1999