Marcia Hultman

Cabinet Secretary

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Labor Market Information Center

2016 Annual Summary

Quarterly Census of Employment and Wages

Education and Health Services Supersector

The Education and Health Services supersector is comprised of the education services sector and the health services and social assistance sector. Businesses within this supersector provide instruction and training or provide health care and social assistance to individuals.

South Dakota Covered Workers and Pay
2016
Supersector, Sector and Subsector Number of Establishments Average Number of Workers Annual Pay
Education and Health Services 2,850 65,247 $48,011
  Educational Services 348 3,777 $30,300
    Educational Services 348 3,777 $30,300
  Health Care and Social Assistance 2,502 61,470 $49,099
   Ambulatory Health Care Services 1,399 16,337 $75,927
   Hospitals 62 24,266 $51,433
   Nursing and Residential Care Facilities 386 12,826 $26,963
   Social Assistance 655 8,041 $22,858
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.

Educational Services

NAICS Sector 61

The number of workers within the Educational Services industry decreased throughout 2016, diminishing by 60 workers (-1.6 percent). All categories except one in this subsector had employment losses. The 2016 average number of workers within Educational Services settled at 3,777. While worker numbers steadily decreased, average annual pay raised slightly, $176 (0.6 percent) for a 2016 annual average of $30,300.

The Educational Services sector comprises establishments that provide instruction and training in a wide assortment 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 delivered by teachers or instructors who explain, demonstrate, supervise and direct learning. Instruction is conveyed in distinct 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 levels dipped throughout the entire industry. Educational support services were responsible for about one third of the regression of workers during 2016. Guidance, test development, evaluation and college selection services were in less demand, thus employment decline. Basic preparatory education such as elementary and secondary schools had some worker loss. Kindergarten through 12th grade represents this category as well as school boards and school districts. Junior colleges along with community colleges experienced negative worker growth. These establishments primarily are engaged in furnishing academic, or academic and technical, courses and granting associate degrees, certificates, or diplomas below the baccalaureate level. The requirement for admission to an associate or equivalent degree program is at least a high school diploma or equivalent general academic training. Business and secretarial schools that offer courses in office procedures, secretarial and stenographic skills and word processing had worker numbers subside.

Worker growth was evident within technical and trade schools. These educational firms are primarily engaged in offering training in barbering, hair styling, or cosmetic arts, such as makeup or skin care. Job specific certification is provided by these schools.

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.

Although the educational services employment diminished some in 2016, education remains 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, as well as developing values, beliefs and habits, 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.

Health Care and Social Assistance

NAICS Sector 62

Employment in the Health Care and Social Assistance sector continued to grow in 2016 as it has in previous years. This sector is made up of the following subsectors:

  • Ambulatory Health Care Services (NAICS 621)
  • Hospitals (NAICS 622)
  • Nursing and Residential Care Facilities (NAICS 623)
  • Social Assistance (NAICS 624)

The Health Care and Social Assistance sector added 1,356 workers, increasing from 60,114 in 2015 to 61,470 in 2016 (2.3 percent). The number of establishments decreased from 2015 to 2016, going from 2,509 in 2015 to 2,502 in 2016. The annual pay increased by $1,198 (2.5 percent) compared to the previous year, increasing to $49,099 in 2016.

The Ambulatory Health Care Services subsector added 622 workers, increasing from 15,715 in 2015 to 16,337 in 2016. This would make it a 4 percent increase of workers from the previous year, which is the highest percentage increase of workers in this sector. The annual pay for workers in this subsector increased from $74,353 in 2015 to $75,927 in 2016, which is an increase of $1,574. This subsector added 9 establishments from 2015 to 2016, making the total number of establishments 1,399 in 2016. This subsector consists of offices of physicians, offices of dentists, offices of other health practitioners, outpatient care centers, medical and diagnostic laboratories, home health care services and other ambulatory health care services.

The Hospitals subsector worker level increased by 2.2 percent, which translates into 518 more workers than the previous year and a total of 24,266 workers in 2016. The establishments decreased by 9, making the total number of establishments 62 in 2016. In 2016, the annual pay for workers in this subsector increased by $763 (1.5 percent) to $51,433.

The Nursing and Residential Care Facilities number of establishments in this subsector increased by 9 from 2015 making the total number of establishments 386 in 2016. Employment continues to grow as new establishments open and existing ones add workers. This subsector had the largest percentage of increase in annual pay of the four subsectors in this area. The annual pay increased by 4 percent making 2016 annual wage $26,963, which is an increase of $1,045 from the previous year.

The Social Assistance subsector includes a variety of establishments providing individual and family services, emergency and other relief services, vocational rehabilitation services, and child day care services. The establishment in this subsector decreased going from 671 establishments in 2015 to 655 establishments in 2016. Despite decreasing 16 establishments from 2015 to 2016, this subsector gained 154 workers from previous year totaling 8,041 workers in 2016. Employees in this subsector had 1.9 percent increase the average annual pay receiving $427 more from 2015 to 2016 with an average annual pay of $22,858 in 2016. Establishments engaged in providing day care of infants and children gained some workers. Generally these firms care for preschool children, but may care for older children when not in school and may offer education programs at the pre-kindergarten level.

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