Department of Labor and Regulation

Title - Labor Market Information Center

Covered Workers & Annual Pay - 2012 Annual Summary

Education and Health Services Industry Group

The Education and Health Services industry group is comprised of the Education Services industry, and the Health Services and Social Assistance industry. Businesses within this industry group provide instruction and training or provide health care and social assistance to individuals.

South Dakota Covered Workers and Pay
Education & Health Services Industry
2012
Industry Group, Industry and Subsector
Number of Establishments Average Number of Workers Annual Pay
Education and Health Services 2,711 61,989 $42,430
  Educational Services 274 3,655 $29,326
    Educational Services 274 3,655 $29,326
  Health Care and Social Assistance 2,437 58,334 $43,251
   Ambulatory Health Care Services 1,374 14,898 $62,619
   Hospitals 56 23,012 $49,000
   Nursing and Residential Care Facilities 377 12,893 $23,763
   Social Assistance 630 7,531 $20,737
Totals may not add due to rounding.
Data subject to revision.
Produced by the Labor Market Information Center, South Dakota Department of Labor and Regulation, in cooperation with the U.S. Bureau of Labor Statistics.

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Educational Services Industry
NAICS Sector 61

The number of workers within the Educational Services industry increased throughout 2012, expanding by 179 workers (5.1 percent). All categories of this subsector had employment growth, except one. The 2012 average number of workers within Educational Services settled at 3,655. While worker numbers steadily increased, average annual pay decreased $331 (1.1 percent) for a 2012 annual average of $29,326.

The Educational Services sector includes establishments that provide instruction and training in a wide mixture of subjects. This instruction and training is provided by specialized establishments, such as schools, colleges, universities, and training centers. These establishments may be privately owned and operated for profit or not for profit, or they may be publicly owned and operated. They may also offer food and accommodation services to their students.

Educational services are usually supplied by teachers or instructors who explain, demonstrate, supervise and direct learning. Instruction is conveyed in diverse settings, such as educational institutions, the workplace or the home through correspondence, television, the Internet or other electronic and distance-learning methods. All industries in the sector share this cohesion of process, namely labor inputs of instructors with the requisite subject matter expertise and teaching ability.

The Educational Services industry has one subsector, which is also entitled Educational Services (NAICS 611). The level and structure of training can vary depending on its purpose. For instance, it can be formal, such as that provided by secondary schools, colleges, universities and professional schools. These institutions correspond to a recognized series of formal levels of education designated by diplomas, associate degrees and bachelors and higher degrees. Less formal venues include seminars, sport camps or a specific computer software package. Establishments offering this type of training may grant certificates or licenses. Establishments that manage schools and other educational establishments on a contractual basis are classified in this subsector if they both manage the operation and provide the operating staff. Such establishments are classified in the educational services subsector based on the type of facility managed and operated.

Worker growth in this industry resulted from the continuing emphasis on improving and increasing the education of our population in general, as well of those currently employed but in need of improving their skills. Other schools and instruction including fine arts schools, sports and recreation instruction and standardization examinations services experienced growth in the number of workers. The training provided by these establishments may include the use of simulators and simulation methods. Colleges, universities and professional schools were responsible for some of the growth in worker levels. Elementary and secondary schools also experienced growth, expanding due to population growth in some areas.

Educational Services is widely considered a counter-cyclical industry. That is to say, typically, when the economy is doing poorly and unemployment is rising, more working adults, as their career prospects start to dim, decide to upgrade their education. This, in turn, leads to higher enrollment and increased profit at the schools. We note that traditional undergraduate education for young students is generally non-cyclical. Culinary arts schools, however, can be labeled as moderately cyclical. Also, certain types of educational institutions do perform largely in sync with the broader economy. For example, providers of information technology instruction benefit in good times, when companies are likely to boost related investment.

Education is important, as the amount and type of education individuals receive is shown to have a major influence on both the types of jobs obtained and corresponding earnings. Lifelong learning is important in acquiring new knowledge and upgrading skills, particularly in this age of rapid technological and economic changes. The educational services industry includes a variety of institutions that offer academic education, career and technical instruction, and other education and training to millions of students each year.

Line graph comparing South Dakota covered worker levels in Educational Services in 2011 and 2012

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Health Care and Social Assistance
NAICS Sector 62

Employment in the Health Care and Social Assistance sector continued to climb upward as it has done for the past several years. This is to be expected with the greying of America, the coming of retirement for the baby boomer generation and with the incredible advancements made in health care. This industry is made up of the subsectors of Ambulatory Health Care Services, Hospitals, Nursing and Residential Care Facilities, and Social Assistance programs. Although employment increased, the number of establishments dropped by eight, some clinics and nursing homes were taken over by hospitals, most likely in an effort to pool resources. Employment increased from 56,797 in 2011 to 58,334 in 2012, adding 1,537 employees (2.7 percent). Average annual wages increased by $1,500 (3.6 percent) to $43,251 in 2012.

The Ambulatory Health Care Services (NAICS 621) subsector lost five establishments in 2012, but gained 124 workers. The annual pay level remained relatively stable at $62,619.

The Hospitals (NAICS 622) subsector employment level increased from to 23,012 in 2012, adding 1,449 (6.7 percent). There was also a healthy 6.1 percent in the annual wages paid in this subsector, with an average of $49,000.

The Nursing and Residential Care Facilities (NAICS 623) covers a very wide range of care facilities ranging from homes where the residents require assistance with daily life with registered nurses in house to facilities where the residents need minimal assistance and there is no on-site nursing. There are facilities for the elderly and the mentally and developmentally challenged. There are also homes for juvenile delinquents and orphanages. This subsector as a whole lost six establishments and 80 workers over the course of the year, which is less than one percent of the employment level in 2011. Wages increased to $23,763 (2.6 percent) during 2012.

Social Assistance (NAICS 624) subsector has experienced slowed growth in establishments and employees for the past couple of years. There were three new establishments created and an increase of 44 workers. This is growth of less than one percent in employment. The worker's average wage went from $20,406 in 2011 to $20,737 in 2012, which is an increase of 1.6 percent for the year.

Line graph comparing South Dakota covered worker levels in Health Care and Social Assistance in 2011 and 2012

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184