Marcia Hultman

Cabinet Secretary

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Labor Market Information Center

2016 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

Supersector, Sector and Subsector Number of Establishments Average Number of Workers Annual Pay
Professional and Business Services 5,277 31,257 $52,668
  Professional, Scientific and Technical Services 3,220 12,901 $57,542
   Professional and Technical Services 3,220 12,901 $57,542
  Management of Companies and Enterprises 215 5,074 $96,709
   Management of Companies and Enterprises 215 5,074 $96,709
  Administration & Support, & Waste Mgmt. & Remediation Services 1,842 13,281 $31,112
   Administrative and Support Services 1,706 12,398 $30,516
   Waste Management and Remediation Services 136 883 $39,485
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 industry improved by 390 workers (3.1 percent) from 2015 to 2016 for a total annual average employment level of 12,901. This industry calculated an increase in annual pay of $1,059 (1.9 percent) for a new average of $57,542.

The Professional, Scientific and Technical Services sector comprises establishments that specialize in performing professional, scientific, and technical functions for others. These activities require a high degree of proficiency 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.

The unique 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 solely reliant 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. Much of the expertise requires degrees, though not in every case.

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 2016. The following industry groups all had increased worker levels from 2015 to 2016:

  • Legal Services (NAICS 5411)
  • Accounting, Tax Preparation, Bookkeeping and Payroll Services (NAICS 5412)
  • Architectural, Engineering and Related Services (NAICS 5413)
  • Specialized Design Services (NAICS 5414)
  • Computer Systems Design and Related Services (NAICS 5415)
  • Management, Scientific, and Technical Consulting Services (5416)
  • Scientific Research and Development Services (NAICS 5417)
  • Other Professional, Scientific and Technical Services (NAICS 5419)

Some of the 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. These establishments often install the system, and train and support users of the system. Computer hardware and software consulting businesses belong in this category.

Accounting, Tax Preparation, Bookkeeping and Payroll Services experienced employment gains throughout 2016. These establishments perform auditing on accounting records of public and private organizations, design accounting systems, develop budgets, and prepare tax returns and process payrolls. Offices of certified public accountants (CPAs) may provide these accounting services.

As has been the trend, 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 testing laboratories where establishments conduct analytical testing services in laboratories or on-site. Surveying and mapping services gained workers as they examine surfaces of the earth, including the sea floor.

Scientific Research and Development Services realized worker gains in 2016. Biotechnology companies conducting research and experimental development expanded due to the demand for their services.

Other Professional, Scientific and Technical Services experienced employment gains during 2016. Veterinary offices and hospitals licensed to practice medicine, dentistry and surgeries for animals had positive worker levels. Livestock inspecting and testing services and pet hospitals are included in this category.

There was one area experiencing some worker loss during 2016. The expertise provided within this sector includes a range of diverse industries, including Advertising, Public Relations and Related Services (NAICS 5418). Reclassification of workers caused a shift in worker levels for Advertising, Public Relations and Related Services. These workers are now part of credit intermediation services. Based on new information and business activity they were re-classified.

Although these industry groups suffered worker losses or shifts in the way they are grouped, the sector as a whole increased in worker levels. There is still 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. The majority of the workers are in high-level management positions.

Establishment levels, worker numbers and annual pay in the Management of Companies and Enterprises sector rose again in 2016. This marks the seventh consecutive year for gains in establishment and worker levels in the sector. After a slight dip in 2011, annual pay joined the ongoing upward trend in 2012 and has been rising since.

In 2016, this sector added six establishments and 143 workers. This equaled a 2.9 percent employment gain over the year. Average annual pay jumped by $3,153, an increase of 3.4 percent. With an average annual pay of $96,709, the sector easily retained its spot as the highest paying sector in 2016. Annual pay for this sector tends to be markedly more than other sectors due to its highly skilled occupations.

This sector is composed of establishments that function to implement vital activities that are often undertaken in-house by establishments in many sectors of the economy. Consolidating these activities at one establishment results in achieving economies of scale.

Administrative and Support, Waste Management and Remediation Services

NAICS Sector 56

The average number of workers in the Administrative and Support, Waste Management and Remediation Services industry increased 0.4 percent from 2015 to 2016. Employment gains of 50 raised the industry to a new level, with an annual average of 13,281 in 2016. The annual pay for this sector increased $1,160 (3.9 percent) for an average of $31,112 in 2016.

The Administration and Support Services (NAICS 561) subsector had the greatest percentage of workers in this sector and was responsible for small worker increases. Most of these workers were employed by businesses engaged in performing activities to buildings and dwellings. Landscaping establishments providing care and maintenance for trees, lawns and gardens along with designing of walkways, decks and fences contributed to the employment expansion.

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. These establishments do not provide operating staff to carry out the complete operations of a business.

Travel arrangement and reservation services suffered worker loss during 2016. Airline, car rental, hotel, and restaurant reservation services are all categorized in this subsector and are seeing a decline for their assistance. Consumers with Internet and smartphone technology options available are becoming their own agent by crafting their own travel arrangements.

Job losses were felt for 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 loss of workers, 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 belonging in this category. 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.

The number of workers in the Waste Management and Remediation Services (NAICS 562) subsector improved (48 workers or 5.7 percent) for a 2016 average worker level of 883. The annual pay showed a gain of $1,088 (2.8 percent) for an annual average of $39,485. Establishments included in this subsector which showed worker gains collect, treat and dispose hazardous or nonhazardous waste materials. Establishments comprising solid waste collection and hauling and collecting and hauling recyclable materials were contributors to worker additions. Businesses engaged in environmental remediation services and cleanup of contaminated buildings, mine sites, soil or ground water increased worker levels throughout 2016.

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