South Dakota's Quarterly Census of Employment and Wages - 2006

Professional & Business Services Industry Group

The professional and business services industry group is comprised of the professional, scientific and technical services industry; the management of companies industry; and the administrative and support and waste management and remediation services industry. Businesses within this industry group perform professional services, hold securities of companies or perform routine support activities for the day-to-day operations of other businesses.

Professional, Scientific & Technical Services Industry

The distinguishing feature of the professional, scientific and technical services industry is the fact that most of the industries grouped in it have production processes that are almost wholly dependent on worker skills. In most of these industries, equipment and materials are not of major importance, unlike manufacturing, for example, where ''high tech'' machines and materials are important collaborating inputs to labor skills in the manufacturing production process. Thus, the establishments classified in this subsector sell expertise. Much of the expertise requires degrees, though not in every case.  

The services provided in this sector normally require a high degree of expertise and training. Human capitol is a major input in delivery of services. Establishments make available the knowledge and skills of their employees working on individual assignments or as teams assembled to deliver service to customers. Activities requiring expertise consist of 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 all other professional, scientific and technical services.

Establishments within the professional, scientific and technical services industry experienced an increase of 376 workers from 2005 to 2006, for an annual average of 9,740. The annual pay also increased by $2,919 (7.6 percent) to $41,106 in 2006.  

Worker growth was experienced throughout the entire professional, scientific and technical services industry during 2006. The majority of the worker level increase was centered in architectural, engineering and related services and in accounting, tax preparation, bookkeeping and payroll services businesses. The worker increase in this industry reflects the continued consumer demand for the specialized services offered by this industry.

Management of Companies & Enterprises Industry 

The management of companies and enterprises industry comprises (1) establishments that hold the securities of (or other equity interests in) companies and enterprises for the purpose of owning a controlling interest or influencing management decisions or (2) establishments (except government establishments) that administer, oversee and manage establishments of the company or enterprise and that normally undertake the strategic or organizational planning and decision making role of the company or enterprise.

The management of companies and enterprises industry had a good year by most standards in 2006. This industry posted its first worker gain since 2000 and also had a noteworthy increase in establishments. In 2006 the management of companies and enterprises industry added 260 workers, increasing from 2,528 to 2,788. This was an overall increase of 10.3 percent. Establishments in this industry also rose by 13 in 2006.

Average annual pay for this industry showed a significant drop in 2006 of 13.0 percent, falling by $9,776. Although this seems like a very drastic drop in annual pay, because this is such a small industry, the comings and goings of just a few high-paying companies can have a profound effect on the average annual pay for the entire industry.

Administrative & Support, Waste Management & Remediation Services Industry

The administrative and support and waste management and remediation services industry experienced a gain of 663 workers (5.4 percent) from 2005 to 2006, for a total of 13,035 workers in 2006. This industry also had a positive change in pay, a gain of $557 (2.5 percent) from 2005 to a level of $22,593 in 2006.

The administration and services subsector makes up the largest portion of this industry and had the majority of the worker growth, gaining 643 workers (5.5 percent) from 2005 to 2006. The employment services, business support services, investigation and security services, and the services to buildings and dwellings all experienced gains of at least 120 workers. There was also a small gain of workers in the office administrative services. Both the facilities support services and the other support services experienced small declines in workers from 2005 to 2006.

Worker levels in the waste management and remediation services subsector grew by 2.9 percent over the year, for a total of 701 workers in 2006. This subsector includes establishments that collect, treat and dispose of waste materials, and also those that offer reclamation and remediation services. Annual pay also grew to $29,844 in 2006, exhibiting a 5.1 percent increase.

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If you have questions or need more information, contact Ron Meier of the Labor Market Information Center at (605) 626-2314 or e-mail him at ron.meier@state.sd.us.