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South Dakota e-Labor Bulletin

September 2023

What "Other Services" do South Dakota industries provide, and to whom?

Eventually, everyone including businesses needs some type of service to make their life convenient and less complicated. Shopping for a service can be an enjoyable experience. Thousands of businesses across South Dakota offer a wide array of services and amenities to consumers. Through the Quarterly Census of Employment and Wages (QCEW) statistical program, South Dakota’s Labor Market Information Center (LMIC) collects information from employers concerning their business activities. LMIC staff classify businesses in their appropriate industry sector. The North American Industry Classification System (NAICS), specifically, the sector Other Services (NAICS 81), is where many service-oriented businesses are clustered, but this can be broken down further into the following subsectors:

• Repair and Maintenance (NAICS 811)
• Personal and Laundry Services (NAICS 812)
• Religious, Grantmaking, Civic, Professional, and Similar Organizations (NAICS 813)
• Private Households (NAICS 814)

The Other Services sector has enjoyed steady employment increases the past 10 years apart from 2020 because of COVID-19 related implications. Even then, losses were minimal, 2.2%. The establishments in this industry sector are made up of businesses which typically have small-scale employment levels. Establishments and average wages also have had steady improvement through the years. Let’s take a more in-depth view of these industries and the types of workers required to carry out these services.

Repair and Maintenance establishments recondition and refurbish commercial and industrial machinery, equipment and other products to operational order. The goal is to keep facility equipment, tools and infrastructure in good shape and performing efficiently to avoid unplanned downtime or equipment failure. Repairs are restoration work for when an asset breaks, gets damaged or stops working. Maintenance refers to routine activities and/or corrective or preventative repair done on assets while providing cost effective measures to prevent damage, breakdowns and unnecessary repairs so that life expectancy is prolonged.
Many establishments serve both businesses and personal households, safeguarding a nice complementary customer base. Many establishments over the years have contributed to worker gains. Automotive repair establishments employ mechanics with specialized technical skills to diagnose and repair mechanical and electrical systems of automotive vehicles; they add employees each year to keep pace with demand.
Farm machinery and equipment repair and maintenance service firms consistently see improvements in data year to year. New businesses are opening, adding to total payrolls in the industry, and current businesses are expanding and raising employment levels. South Dakota relies heavily on the agriculture industry, so when it comes to keeping farm equipment running smoothly, it takes detailed maintenance and the proper repairs to avoid expensive breakdowns. Businesses employ machinery experts to keep engines, carburetors, spark plugs and batteries working well. These workers also are responsible for winterizing equipment so end users can save time during busy seasons, thus reducing expensive repairs. Preventative routine maintenance can go a long way, and these dedicated workers help ensure well-conditioned equipment.

Modern agricultural business is evolving persistently with a primary focus on using  technologies to boost crop yields through better planning and smarter management. These technologies, also known as agritech, encompass a range of devices that improve agricultural output. This includes vehicles, robotics, computers, satellites, drones, mobile devices and software. Keeping equipment operating efficiently is critical to a farmer’s bottom line. Farmers have to make huge investments in agricultural equipment. Because of the advanced technology involved, they often must rely on the skills and knowledge of precision technicians not only during the sale but also for installation, on-site consultations for proper use, equipment upgrades, service and support of the equipment and supplies. Repair technicians prepare equipment ahead of time for the season to come and are in the field as needed to assist with any breakdowns as they occur.

The Personal and Laundry Services grouping includes establishments that provide personal and laundry services to individuals, households and businesses. Personal services come in an assortment of forms, but all include a performance of action instead of a supply of goods. Services performed include personal care services such as hair, nails and skin; death care services; laundry and dry-cleaning services; and a wide range of other personal services, such as pet care (except veterinary) services, photofinishing services, massage parlors and dating services. Consumers enjoy treating themselves, and these specialized services provide these amenities. Many other subsectors provide services to people and are classified under different sectors.

Industries in the Religious, Grantmaking, Civic, Professional and Similar Organizations organize and promote religious activities; support various causes through grantmaking; advocate various social and political causes; and promote and defend the interests of their members. Establishments within this subsector may publish newsletters, books and periodicals for distribution to their membership. South Dakota memberships and contributions have been active, supporting the interests of people working in these professions so they can minister in serving the public. Professional organizations facilitate innovation, communication and connection. These organizations often have close ties to colleges and universities with degree programs in that field. New businesses are opening, adding to the payrolls, while existing businesses are expanding regularly, enhancing employment levels. 

The Private Households industry subsector is primarily engaged in employing domestic service workers on or about the premises in activities primarily concerned with the operation of the household. These private households may employ individuals such as cooks, maids, nannies, butlers, cleaning people, private nurses and outdoor workers, such as gardeners, caretakers and other maintenance workers. Private domestic households may also hire estate managers, personal assistants, tutors or drivers and chauffeurs. Often these workers are skilled professionals fulfilling tasks household employers expect of them. Independent contractors such as repairmen, carpenters and plumbers are not considered household employees. This industry tends to have a steady but small workforce overall. The majority of workers in this industry grouping are nannies and others who provide childcare. Families with busy schedules and parents employed need the services offered by childcare providers, and those who can afford it often prefer to have the care provided in their own home. These workers are paid hourly, salaried or on a per-job basis.

The Other Services industry sector is an important part of a functioning society and growing economy. South Dakota businesses employ talented individuals who provide valuable services and nonmaterial goods. Their goals are to complete tasks useful to customers, clients, businesses or the general public. Service industries, unlike, for example, manufacturing and production industries, do not rely on the sale of material goods and products to earn a profit. Instead, the individuals who work in the service sector focus on completing tasks and providing services.

South Dakota’s Other Services workforce strives to create positive experiences, providing value and continually serving the needs of customers and businesses while increasing the industry’s impact on the state’s economy.

For more complete information on this and other industries, please visit the menu page on our website for information from the Quarterly Census of Employment and Wages program. Here you will find employment and wage data by industry from the QCEW program and available for statewide South Dakota, the Metropolitan Statistical Areas of Rapid City and Sioux Falls and all 66 counties. Quarterly and annual data are readily available.