Department of Labor and Regulation

Title - Labor Market Information Center

Covered Workers & Annual Pay - 2012 Annual Summary

Professional and Business Services Industry Group

The Professional and Business Services industry group is comprised of the Professional, Scientific and Technical Services industry, the Management of Companies industry, and the Administrative and Support, and Waste Management and Remediation Services industry. Businesses within this industry group perform professional services, hold securities of companies or perform routine support activities for the day-to-day operations of other businesses.

South Dakota Covered Workers and Pay
Professional and Business Services Industry Group
2012
Industry Group, Industry and Subsector
Number of Establishments Average Number of Workers Annual Pay
Professional and Business Services 4,723 29,169 $45,556
  Professional, Scientific and Technical Services 2,869 11,541 $51,680
   Professional and Technical Services 2,869 11,541 $51,680
  Management of Companies and Enterprises 191 4,141 $89,111
   Management of Companies and Enterprises 191 4,141 $89,111
  Administration & Support, & Waste Management
      & Remediation Services
1,663 13,487 $26,943
   Administrative and Support Services 1,523 12,687 $26,491
   Waste Management and Remediation Services 140 800 $34,109
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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Professional, Scientific and Technical Services Industry
NAICS Sector 54


Establishments within the Professional, Scientific and Technical Services industry added 399 workers (3.6 percent) from 2011 to 2012 for a total annual average employment level of 11,541. This industry had an increase in annual pay of $2,464 (5.0 percent) for a new average of $51,680.

The Professional, Scientific and Technical Services sector comprises establishments that specialize in performing professional, scientific, and technical activities for others. These activities require a high degree of expertise and training. The establishments in this sector specialize according to expertise and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: legal advice and representation; accounting, bookkeeping, and payroll services; architectural, engineering, and specialized design services; computer services; consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific, and technical services. Human capital is a major input in the delivery of these services.

Establishments make available the knowledge and skills of their employees working on individual assignments or as teams assembled to deliver this service to customers. The individual industries of this sector are defined on the basis of the particular expertise and training of the services provider. This sector excludes establishments primarily engaged in providing a range of day-to-day office administrative services, such as financial planning, billing and recordkeeping, personnel, and physical distribution and logistics. These establishments are classified in a different sector.

The distinguishing feature of the Professional, Scientific and Technical Services subsector is the fact that most of the industries grouped in it have production processes that are almost wholly dependent on worker skills. In most of these industries, equipment and materials are not of major importance. Thus, the establishments classified in this subsector sell expertise.

Some industries in this group have close ties to the goods sector, with construction, manufacturing and mining being among their most important clients. However, their clients also include governments and other industries in the service sector. Others have a more broadly based clientele, including both businesses and households as their customers.

Several establishments within the Professional, Scientific and Technical Services industry subsector (NAICS 541) experienced worker increases during 2012. The following industry groups all had increased worker levels from 2011 to 2012:

  • Legal Services (NAICS 5411)
  • Architectural, Engineering and Related Services (NAICS 5413)
  • Specialized Design Services (NAICS 5414)
  • Computer Systems Design and Related Services (5415)
  • Scientific Research and Development Services (5417)

Similar to last year, increases in the number of workers within the Architectural, Engineering and Related Services was mainly focused within engineering services. These establishments are primarily engaged in applying physical laws and principles of engineering in the design, development and utilization of machines, materials, instruments, structures, processes and systems. Additional worker levels were acknowledged within surveying and mapping services where establishments conduct mapping activities of the surface of the earth, including the sea floor. Testing laboratories conducted in laboratories or on-site also provided to these worker increases.

Some of the gains in worker levels for Computer Systems Design and Related Services can be attributed to computer programming services such as software programming applications analysis and custom web page design services. Computer hardware and software consulting businesses belong in this category. Business and administrative management consulting services remain in demand as establishments seek operating advice and assistance on a full range of areas such as business startup and financial management consulting.

Scientific Research and Development Services experienced employment gains during 2012. Establishments conduct original investigation on a systemic basis to gain new knowledge and apply their research findings for creating new or improving products. They define their domain of research based on scientific expertise. Establishments associated with piloting research and experimental development in the physical, engineering and life sciences realized worker gains throughout 2012.

The expertise provided within this sector includes a range of diverse industries including:

  • Accounting, Tax Preparation, Bookkeeping, and Payroll Services (NAICS 5412)
  • Management, Scientific, and Technical Consulting Services (5416)
  • Advertising, Public Relations and Related Services (NAICS 5418)
  • Other Professional, Scientific and Technical Services (NAICS 5419)

Advertising, Public Relations and Related Services suffered worker losses during 2012. Firms predominantly engaged in creating and designing public display advertising, campaign materials, such as painted or electronic displays and placing these displays on billboards or panels are associated with this industry.

Industry reclassification caused a shift in worker levels for Management, Scientific and Technical Consulting Services. These workers remained classified within the Professional, Scientific and Technical Services sector; however, based on new information and business activity were re-classified within the sector. Although these industry groups suffered worker losses or shifts in the way they are grouped, the sector as a whole increased in worker levels.

Line graph comparing South Dakota covered worker levels in Professional, Scientific and Technical Services in 2011 and 2012

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Management of Companies and Enterprises
NAICS Sector 55

The number of establishments and workers in the Management of Companies and Enterprises sector expanded for the third straight year in 2012. After a slight drop in 2011, annual pay rebounded and joined this upward trend. Establishments in this sector hold companies' securities. They own a controlling interest and can influence management decisions. This sector also includes companies that normally handle the strategic or organizational planning and decision-making on behalf of other companies.

In 2012, this sector added three establishments and 373 workers, which is a 9.9 percent increase in employees. The sector once again earned the top spot as South Dakota's highest-paying sector. Average annual pay increased by 1.2 percent to $89,111. Annual pay for this sector tends to be markedly more than other sectors due to its high concentration of highly skilled occupations, the majority of which are employed in high-level management positions.

Line graph comparing South Dakota covered worker levels in Management of Companies and Enterprises in 2011 and 2012

Administrative and Support, Waste Management and Remediation Services Industry
NAICS Sector 56

The average number of workers in the Administrative and Support, Waste Management and Remediation Services industry decreased 1.4 percent from 2011 to 2012. Employment losses totaled 185, with an annual average of 13,487 in 2012. The annual pay for this sector increased $1,424 (5.6 percent) for an average of $26,943 in 2012.

The Administration and Support Services (NAICS 561) subsector had the greatest percentage of workers in this sector and was consequently responsible for all of the worker decreases. A total worker decline of 189 equated to a 1.5 percent decrease in 2012. Most of these workers were employed by businesses engaged in performing activities that are ongoing, routine business support functions that businesses and organizations now do for themselves.

Telemarketing bureaus and other contact centers are categorized in this group. Other business support services such as collection agencies suffered worker loss during 2012.

Job growth continued for establishments engaged in providing employment services which include manpower pools and executive search services. With the economy showing steady improvement, temporary help agencies and labor pools, which normally provide businesses with supplemental staffing, are still in demand. These establishments include those workers involved in placing clients with employers seeking help on both a temporary and permanent basis. These services continue to be an important and practical labor supply strategy for employers all across South Dakota who benefit from the specialized day-to-day services provided by them. Executive search, recruitment and placement services for clients with specific executive and senior management position requirements had an expansion of workers.

Job growth occurred within this same subsector in those establishments involved in office administration services. This industry comprises establishments primarily engaged in providing a range of day to day office functions such as financial planning, billing and recordkeeping. Steady growth in worker numbers occurred throughout 2012.

Services to buildings and dwellings added worker levels during 2012. Establishments classified in custodial, mainly cleaning building interiors and housekeeping services all impacted the overall increase of workers.

The number of workers in the Waste Management and Remediation Services (NAICS 562) subsector improved slightly (4 workers or 0.5 percent) for a 2012 average worker level of 800. The annual pay showed a gain of $681 (2.0 percent) for an annual average of $34,109. Establishments included in this subsector which showed worker gains collect, treat and dispose hazardous or nonhazardous waste materials. Offsetting the increasing employment in the waste management and remediation services has been the job decrease occurring within this same subsector involved in remediation and other waste management services. These establishments provide cleanup of contaminated buildings and mine sites. Worker loss was also felt among septic tank and cesspools related activities.

Line graph comparing South Dakota covered worker levels in MAdministrative and Support, Waste Management and Remediation Services 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