Marcia Hultman

Cabinet Secretary

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Labor Market Information Center

2015 Annual Summary

Quarterly Census of Employment and Wages

Professional and Business Services Supersector

The Professional and Business Services supersector is comprised of the professional, scientific and technical services sector; the management of companies sector; and the administrative and support and waste management and remediation services sector. Businesses within this supersector 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
2015

Supersector, Sector and Subsector Number of Establishments Average Number of Workers Annual Pay
Professional and Business Services 5,106 30,672 $51,000
  Professional, Scientific and Technical Services 3,143 12,511 $56,483
   Professional and Technical Services 3,143 12,511 $56,483
  Management of Companies and Enterprises 209 4,931 $93,556
   Management of Companies and Enterprises 209 4,931 $93,556
  Administration & Support, & Waste Mgmt. & Remediation Services 1,754 13,231 $29,952
   Administrative and Support Services 1,622 12,396 $29,383
   Waste Management and Remediation Services 132 835 $38,397
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.

 

Professional, Scientific and Technical Services

NAICS Sector 54

Establishments within the Professional, Scientific and Technical Services sector added 127 workers (1.0 percent) from 2014 to 2015 to reach a total annual average employment level of 12,511. This sector had an increase in annual pay of $3,736 (7.1 percent) for a new average of $56,483.

The Professional, Scientific and Technical Services sector includes establishments that specialize in performing professional, scientific and technical functions for others. These services generally require a high degree of proficiency and training. 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 use the knowledge and skills of their employees to provide services to customers. The individual industries of this sector are defined by the particular expertise and training of the services provided. 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.

The distinguishing feature of the Professional, Scientific and Technical Services sector is most of its industries have production processes that almost exclusively depend on worker skills. In most of these industries, equipment and materials are not of major importance. The establishments in this sector sell expertise.

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

Several establishments within the Professional, Scientific and Technical Services subsector (NAICS 541) experienced worker increases during 2015. The following industry groups within the subsector had increased worker levels from 2014 to 2015:

  • Accounting, Tax Preparation, Bookkeeping and Payroll Services (NAICS 5412)
  • Architectural, Engineering and Related Services (NAICS 5413)
  • Computer Systems Design and Related Services (NAICS 5415)
  • Scientific Research and Development Services (NAICS 5417)
  • Other Professional, Scientific and Technical Services (NAICS 5419)

As has been the trend, increases in the number of workers within the Architectural, Engineering and Related Services mainly occurred 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. Worker levels also increased in testing laboratories, where establishments conduct analytical testing.

Some gains in worker levels for Computer Systems Design and Related Services can be attributed to establishments engaged in planning and designing systems that integrate computer hardware, software and communication technologies. Workers in these establishments often install the system and train and support users of the system. Computer hardware and software consulting businesses belong in this category.

The Other Professional, Scientific and Technical Services industry group also experienced employment gains during 2015. Veterinary offices and hospitals licensed to practice medicine, dentistry and surgeries for animals showed growth in worker levels. Livestock inspecting and testing services are also included in this group.

Some industry groups experienced worker losses during 2015.The expertise provided within these groups covered a range of diverse industries, including:

  • Legal Services (NAICS 5411)
  • Specialized Design Services (NAICS 5414)
  • Management, Scientific and Technical Consulting Services (5416)
  • Advertising, Public Relations and Related Services (NAICS 5418)

Legal Services suffered worker losses during 2015. Offices of lawyers, title abstract and settlement offices and other legal services such as paralegal and notary public services experienced some of these worker shortfalls.

Reclassification of workers caused a shift in worker levels for Management, Scientific and Technical Consulting Services. Based on new information and business activity, these workers are now classified as part of administrative support office services.

Although these industry groups suffered worker losses or shifts in classification, overall worker increases in the sector indicate a correlation to the continued consumer demand for the specialized services which it offers.

 

Management of Companies and Enterprises

NAICS Sector 55

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. Establishments include centralized administrative offices, corporate offices and district and regional offices. The majority of the employees work in high-level management positions.

Establishment levels, worker numbers and annual pay in the Management of Companies and Enterprises sector rose again in 2015. This marks the sixth consecutive year for gains in establishment and worker levels in the sector. After a slight dip in 2011, annual pay joined the upward trend in 2012 and has been rising steadily since.

In 2015, the sector added four establishments and 363 workers, which equaled a 7.9 percent increase in worker levels. Over the year, average annual pay increased by almost 1 percent to $93,556. The sector easily retained its spot once again as the highest paying sector in South Dakota. Annual pay for this sector tends to be markedly more than other sectors due to its upper level managerial and executive occupations.

 

Administrative and Support, Waste Management and Remediation Services

NAICS Sector 56

The average number of workers in the Administrative and Support and Waste Management and Remediation Services sector decreased -0.5 percent from 2014 to 2015. Employment losses of 63 workers dropped the annual average to 13,231 for 2015. Annual pay for this sector increased $787 (2.7 percent) to an average of $26,952 in 2015.

The Administration and Support Services (NAICS 561) subsector had the greatest percentage of workers in the sector and was responsible for all of the worker decreases. The total worker deficit of 92 equaled a -0.7 percent decrease in 2015. Most of these workers were employed by businesses engaged in performing ongoing, routine business support functions that businesses and organizations traditionally do for themselves. Telemarketing bureaus and other contact centers are in this group. Other business support services, such as collection agencies, also suffered worker losses during 2015.

Job growth occurred within the subsector’s office administration services industry group, which includes establishments primarily engaged in providing a range of day-to-day office functions such as financial planning, billing and recordkeeping. These establishments do not provide operating staff to carry out the complete operations of a business. Reclassification of businesses based on new business information supported this group’s worker growth.

Services to buildings and dwellings also added to its worker levels in 2015. Establishments classified in landscaping, maintenance and exterminating services impacted the overall increase of workers.

Job losses occurred in establishments engaged in providing employment services, which include manpower pools and executive search services. Although temporary help agencies and labor pools, which normally provide businesses with supplemental staffing, showed some worker loss, demand still exists for employment placement services. These establishments are involved in listing employment vacancies and in referring or placing applicants for employment. Nurse and teacher registries are examples in this category. These establishments continue to be an important and practical part of the labor supply strategy for South Dakota employers who benefit from the specialized day-to-day services they provide. Executive search, recruitment and placement services for clients with specific executive and senior management position requirements also had an expansion of workers.

The number of workers in the Waste Management and Remediation Services (NAICS 562) subsector improved (29 workers or 3.6 percent) to reach a 2015 average worker level of 835. The annual pay climbed $2,642 (7.4 percent) to an annual average of $38,397. Establishments that showed worker gains in this subsector collect, treat and dispose hazardous or nonhazardous waste materials. Establishments providing solid waste collection and hauling as well as collection and hauling of recyclable materials were contributors to worker additions.

 

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