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Labor Market Information Center

2023 Annual Report

Quarterly Census of Employment and Wages

Leisure and Hospitality Services Supersector

The Leisure and Hospitality Services supersector is comprised of the Arts, Entertainment and Recreation sector, and the Accommodation and Food Services sector. Businesses within this supersector provide cultural, recreational or entertainment services or provides customers with lodging and/or food for immediate consumption.

Arts, Entertainment and Recreation

NAICS Sector 71

The Arts, Entertainment, and Recreation sector’s employment increased in 2023 for the third year in a row since the COVID-19 pandemic caused a large drop in 2020. The number of workers increased 3.0% to a new annual average of 7,490. The average annual wage increased 5.0% to $23,751.

The Arts, Entertainment, and Recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment, and recreational interests of their patrons. The following three subsectors make up the sector:

• Performing Arts, Spectator Sports, and Related Industries (NAICS 711)
• Museums, Historical Sites, and Similar Institutions (NAICS 712)
• Amusement, Gambling, and Recreation Industries (NAICS 713)

The Performing Arts, Spectator Sports, and Related Industries subsector contains establishments that produce or organize and promote live presentations involving the performances of actors and actresses, singers, dancers, musical groups and artists, athletes, and other entertainers, including independent (i.e., freelance) entertainers and the establishments that manage their careers. The subsector’s employment level increased 5.7% to 1,311 in 2023. The average annual wage grew 3.0% to $27,209. Significant employment gain was seen in the Spectator Sports and Promoters of Performing Arts, Sports, and Similar Events industry groups. Event happenings in South Dakota have continued to increase, leading to a higher demand for workers.

Establishments in the Museums, Historical Sites, and Similar Institutions subsector engage in the preservation and exhibition of objects, sites, and natural wonders of historical, cultural, and/or educational value. Also included in the subsector are zoos, botanical gardens, and nature parks. This subsector saw an increase of 16 workers (2.6%). Wages increased $1,781 (5.7%) to an annual average of $33,149.

The Amusement, Gambling, and Recreation Industries subsector’s employment level in 2023 was 5,552, an increase of 2.4%. The average annual wage for the year was $21,874. Establishments in this subsector operate facilities where patrons can primarily engage in sports, recreation, amusement, or gambling activities. Establishments also provide other amusement and recreation services, such as supplying and servicing amusement devices in places of business operated by others; operating sports teams, clubs, or leagues engaged in playing games for recreational purposes; and guiding tours without using transportation equipment. Operations of golf courses, skiing facilities, fitness centers, and bowling alleys also fall within this subsector. These facilities saw large employment gains after the pandemic in 2020. Because of this, employment gains have leveled off but were positive the past two years.

Accommodation and Food Services

NAICS Sector 72

The Accommodation and Food Services sector gained 929 workers (2.3%) in 2023 for an annual average of 41,873. The average annual wage was $22,636, increasing by $1,026 (4.7%). Establishments included in this sector offer a variety of services to patrons. The range of activities in this industry can vary from providing lodging facilities to preparing meals, snacks, and beverages to patrons for immediate consumption. Since both types of service are often found in the same establishment, they are included in the same sector.

The Accommodation (NAICS 721) subsector’s employment level in 2023 was 8,207. The average annual wage increased 4.9% to $27,424. Establishments within this subsector provide lodging or short-term accommodations for travelers, vacationers, and others. The three industry groups within this subsector are:

• Traveler Accommodation
• RV Parks and Recreational Camps
• Rooming and Boarding Houses

The largest of the three industry groups by a wide margin, Traveler Accommodation, includes hotels, motels, casinos offering lodging, bed-and-breakfast inns, and other traveler accommodations such as housekeeping cabins. Employment levels are increasing in this industry but still have not reached pre-pandemic levels. Establishments such as the ones listed above still find it difficult to hire workers for certain types of positions.

The RV Parks and Recreational Camps industry group saw a decrease in employment. Rooming and Boarding Homes, the last industry group in this subsector, has a very small number of establishments and sees no significant changes in employment from year to year.

The Food Services and Drinking Places (NAICS 722) subsector’s employment level in 2023 was 33,667, an increase of 2.5% over 2022. The average annual wage increased 4.8% to $21,468. Special Food Services (food service contractors, caterers, mobile food services), Drinking Places (alcoholic beverages) and Restaurants and Other Eating Places are the three industry groups within this subsector. Establishments prepare meals, snacks, and beverages to customer order for immediate on/off premises consumption. Some provide food and drink only, while others provide various combinations of seating space, waiter/waitress services, and incidental amenities such as limited entertainment. All three industry groups had positive employment change in 2023. Much of the employment increase came from Restaurants and Other Eating Places. Full service restaurants continue to expand and open, requiring additional workers on a yearly basis. Limited service restaurants are edging forward as well. Consumers relish stores that offer specialized sandwiches, bagels, coffees, and ice creams for eating pleasure.

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