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Labor Market Information Center

2022 Annual Report

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.

Professional, Scientific and Technical Services

NAICS Sector 54

The Professional, Scientific and Technical Services sector’s annual average employment in 2022 was 17,215, an increase of 7.3%. The average annual wage increased 9.6% to $80,677.

The Professional, Scientific and Technical Services sector is one of few sectors that contains only one subsector. But, within the Professional, Scientific and Technical Services (NAICS 541) subsector are many industry groups. The distinguishing feature of the subsector is the fact that most of the industries grouped in it have production procedures that are almost solely dependent on worker skills. In most of these industries, equipment and materials are not of major importance, unlike health care, for example, where "high tech" machines and materials are important collaborating inputs to labor skills in the production of health care. Thus, the establishments classified in this subsector sell expertise. Much of the expertise requires degrees, though not in every case.

Seven out of nine industry groups within the subsector experienced worker increases from 2021 to 2022:

• 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 (NAICS 5416)
• Other Professional, Scientific, and Technical Services (NAICS 5419)

Each industry group above had significant employment growth 2022, but the main drivers of growth were the Architectural, Engineering, and Related Services, Computer Systems Design and Related Services and Management, Scientific and Technical Consulting Services industry groups. South Dakota has continued to see a sharp increase in the number of establishments in these specific industries since the COVID-19 pandemic. With the switch to teleworking and technology driven workplaces, there has been an increase in demand for performing duties as either engineers, architects, custom computer programmers, software developers, management consultants or marketing consultants. Most of these companies are small-scale as they hire only one or a few workers. Business management and consulting continue to increase, largely due to the changes in business operations. Business problems can be complex, and consultants are professional experts who provide solutions and strategies to improve the financial and operational health of an organization. Recommendations by these professionals are backed by large amounts of research and data.

The two remaining industry groups within the subsector experienced very small worker decreases from 2021 to 2022:

• Scientific Research and Development Services (NAICS 5417)
• Advertising, Public Relations, and Related Services (NAICS 5418)

Management of Companies and Enterprises

NAICS Sector 55

The Management of Companies and Enterprises sector is comprised of establishments that either hold the securities of companies and enterprises for the purpose of owning a controlling interest or administer, oversee and manage establishments of the company. Primary duties of employees in this industry include influencing management decisions and undertaking the strategic or organizational planning and decision-making within the company. Essential activities of these establishments are often performed in house. By consolidating the performance of these business activities at one establishment, economies of scale are achieved.

The number of workers in 2022 was 5,465, an increase of 6.9% from 2021. Average annual pay rose by $6,712 to $125,763, an increase of 5.3%. Annual pay for this sector tends to be markedly more than other sectors due to its highly skilled occupations. In fact, the sector’s annual average wage ranks as the highest out of all sectors in South Dakota because most workers are in high-level management positions.

Professionals in the Management of Companies and Enterprises industry are typically responsible for major decision making and are privy to a lot of confidential information and data. In some cases, actions taken by key members on staff can directly impact the financial well-being of both companies being managed and their shareholders. As a result, there can be a significant risk of liability lawsuits in this industry. Therefore, risk management is a priority, and individuals are compensated accordingly for the degree of stress involved.

The bulk of this industry is comprised of managing offices. These offices are part of a company and administer, oversee and manage establishments of that company. They normally undertake the strategic planning and decision-making role of the company. Typically, corporate offices, centralized administrative offices and district or regional offices fall within this industry.

Administrative and Support and Waste Management and Remediation Services

NAICS Sector 56

The Administrative and Support and Waste Management and Remediation Services sector’s annual employment in 2022 was 14,127, an increase of 4.9%. The average annual pay for this sector increased $5,476 (12.3%) to $50,102. This sector has continued to recover from worker loss in 2020 due to the COVID-19 pandemic and has surpassed its employment peak of 14,100 in 2007.

Just over 93% of employment in this industry belongs to the Administration and Support Services (NAICS 561) subsector. The average annual employment for this subsector was 13,165 with an average annual wage of $49,936. Four out of eight industry groups in this subsector showed positive employment growth while the other half fell slightly.

Industry groups with worker gain:

• Employment Services (NAICS 5613)
• Travel Arrangement and Reservations Services (NAICS 5615)
• Services to Buildings and Dwellings (NAICS 5617)
• Other Support Services (NAICS 5619)

Industry groups with worker loss:

• Office Administrative Services (NAICS 5611)
• Facilities Support Services (NAICS 5612)
• Business Support Services (NAICS 5614)
• Investigation and Security Services (NAICS 5616)

Employment Services was responsible for almost all of the employment growth in the sector. An increased number of employment placement agencies and temporary help services establishments in South Dakota has led to employment growth in this industry group. Establishments are utilizing staffing agencies to supplement their employment rosters. This has become a successful recruiting tool as staffing firms sort through applicants, identifying the best possible candidates to make the right hire. The Services to Buildings and Dwellings and Other Support Services industry groups each saw only slight employment gain.

The Waste Management and Remediation Services (NAICS 562) subsector employs only 962 workers in the sector. Employment growth was higher in 2022 compared to previous years (4.9% growth over the year). The average annual pay was $52,368. Establishments in this subsector collect, treat and dispose of waste materials. This can include local hauling of waste materials; sorting recyclable materials from the trash stream; providing for the cleanup of contaminated buildings, mine sites, soil, or ground water; and providing septic pumping and other miscellaneous waste management services. Employment gain occurred in the Waste Collection and Remediation and Other Waste Services industry groups.

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