Department of Labor and Regulation

Title - Labor Market Information Center

Covered Workers & Annual Pay - 2011 Annual Summary

Professional and 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.

South Dakota Covered Workers and Pay
Professional and Business Services Industry Group
2011
Industry Group, Industry and Subsector
Number of Establishments Average Number of Workers Annual Pay
Professional and Business Services 4,574 28,582 $43,000
  Professional, Scientific and Technical Services 2,763 11,142 $49,216
   Professional and Technical Services 2,763 11,142 $49,216
  Management of Companies and Enterprises 188 3,768 $88,051
   Management of Companies and Enterprises 188 3,768 $88,051
  Administration & Support, & Waste Management
      & Remediation Services
1,623 13,672 $25,519
   Administrative and Support Services 1,486 12,876 $25,030
   Waste Management and Remediation Services 137 796 $33,428
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.

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Professional, Scientific and Technical Services Industry
NAICS Sector 54


Establishments within the Professional, Scientific and Technical Services industry lost 36 workers (0.3 percent) from 2010 to 2011 for a total annual average employment level of 11,142. This industry experienced an increase in annual pay of $2,509 (5.4 percent) for a new average of $49,216.

This industry sector embraces a variety of establishments specializing in performing professional, scientific, and technical activities and services for the operations of other organizations or to the public, often on a project basis. Although this industry provides a wide range of services usually purchased by other firms, these services may also be provided to households. These services normally require a high degree of training and specialized expertise. Human capital is a major input in the delivery of these services. Establishments make available the knowledge and skills of their employees working on individual assignments or as teams assembled to deliver this service to customers. The individual industries of this sector are defined on the basis of the particular expertise and training of the services provider. This sector excludes establishments primarily engaged in providing a range of day-to-day office administrative services, such as financial planning, billing and recordkeeping, personnel, and physical distribution and logistics. These establishments are classified in a different sector.

The distinguishing feature of the Professional, Scientific, and Technical Services subsector 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. Thus, the establishments classified in this subsector sell expertise. Much of the expertise requires postsecondary education, though not in every case.

Some industries in this group have close ties to the goods sector, with construction, manufacturing and mining being among their most important clients. However, their clients also include governments and other industries in the service sector. Others have a more broadly based clientele, including both businesses and households, as customers.

Several establishments within the Professional, Scientific and Technical Services industry subsector (NAICS 541) experienced worker increases during 2011. The following industry groups all had increased worker levels from 2010 to 2011:

  • Legal Services (NAICS 5411)
  • Architectural, Engineering and Related Services (NAICS 5413)
  • Computer Systems Design and Related Services (5415)
  • Management, Scientific and Technical Consulting Services (NAICS 5416)
  • Scientific Research and Development Services (5417)

An increase in the number of workers within Architectural, Engineering and Related Services was mainly focused within engineering services. These establishments are primarily engaged in applying physical laws and principles of engineering in the design, development and utilization of machines, materials, instruments, structures, processes and systems. Some of the gains in worker levels were recognized within surveying and mapping services where establishments conduct mapping activities of the surface of the earth. Testing laboratories also contributed to these worker increases.

Some of the gains in worker levels for Management, Scientific and Technical Consulting Services can be attributed to administrative, business, and general management consulting services. There continues to be developments in wind and green energy technologies. Business and administrative management consulting services remain in demand as establishments seek operating advice and other services.

Legal Services experienced employment gains during 2011. Legal practitioner's offices comprise this industry and activities encompass legal advice and representation within the practice of law. Establishments in this industry offer knowledge in a range or in specific areas of law, such as criminal or corporate law.

The expertise provided within this sector includes a range of diverse industries including:

  • Accounting, Tax Preparation, Bookkeeping, and Payroll Services (NAICS 5412)
  • Other Professional, Scientific, and Technical Services (NAICS 5419)

Other Professional, Scientific and Technical Services, such as marketing research and public opinion research services suffered worker losses during 2011. These firms are involved in a variety of activities, including systematically gathering, recording, tabulating and presenting marketing and public opinion data. Other establishments, such as commercial photography services showed downward growth in employment numbers.

Although these industry groups suffered worker losses, and the sector as a whole declined in worker levels, there is still a correlation to the continued consumer demand for the specialized services which it offers.

Line graph comparing South Dakota covered worker levels in Professional, Scientific and Technical Services in 2010 and 2011

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Management of Companies and Enterprises
NAICS Sector 55

After a rebound across the board in 2010, the Management of Companies and Enterprises sector continued its upward trend in establishments and workers in 2011. Establishments in this sector hold the securities of other companies for the purpose of owning a controlling interest or influencing management decisions. This sector also includes places that normally handle the strategic or organizational planning and decision-making role on behalf of another company.

In 2011, this sector added four establishments and 155 workers. This equaled a 4.3 percent increase in employees. Average annual pay over the year declined by 1 percent, but the sector easily continued its reign as South Dakota's highest-paying industry at $88,051. Annual pay for this sector tends to be markedly more than other sectors, thanks to its highly skilled occupations. The majority of workers are in high-level management positions.

Line graph comparing South Dakota covered worker levels in Management of Companies and Enterprises in 2010 and 2011

Administrative and Support, Waste Management and Remediation Services Industry
NAICS Sector 56

The average number of workers in the Administrative and Support, Waste Management and Remediation Services industry increased 7.3 percent from 2010 to 2011. Employment gains of 936 helped the industry escalate to a new level, with an annual average of 13,672 in 2011. The annual pay for this sector increased $254 (1.0 percent) for an average of $25,519 in 2011.

The Administration and Support Services (NAICS 561) subsector had the greatest percentage of workers in this sector and was consequently responsible for all of the worker increases. Total worker gains of 933 equated to a 7.8 percent increase in 2011. Most of these workers were employed by businesses providing employment services which include manpower pools. With the economy showing signs of emerging out of the recession, temporary help agencies and labor pools, which normally provide businesses with supplemental staffing, are once again in demand. These establishments include those workers involved in placing clients with employers seeking help on both a temporary and permanent basis. These services continue to be an important and practical labor supply strategy for employers all across South Dakota who benefit from the specialized day-to-day services provided by them.

A jump in establishments involved in business support services accounted for some of the worker increase during 2011. This industry group includes establishments engaged in performing ongoing and routine business support functions for businesses and organizations, which businesses had traditionally done internally. For example, telemarketing bureaus and other contact centers are included in the business support services subsector. Establishments primarily engaged in providing photocopying, duplicating, blueprinting or word processing services are branded in business support services.

Job growth occurred within this same subsector in those establishments involved in investigation and security services. This industry comprises establishments primarily engaged in detective services and security guard and patrol services. Steady growth in worker numbers occurred throughout 2011.

Services to Buildings and Dwellings realized a positive change in worker levels for 2011. Establishments classified in janitorial and housekeeping services along with landscaping services, such as lawn care and maintenance, all impacted the overall increase of workers.

The number of workers in the Waste Management and Remediation Services (NAICS 562) subsector improved slightly (3 workers or 0.4 percent) for a 2011 average worker level of 796. The annual pay showed a gain of $944 (2.9 percent) for an annual average of $33,428. Establishments included in this subsector which showed worker gains collect, treat and dispose hazardous or nonhazardous waste materials. Offsetting those gains were job decreases among businesses providing remediation and other waste management services. These establishments provide cleanup of contaminated buildings and mine sites.

back to topLine graph comparing South Dakota covered worker levels in MAdministrative and Support, Waste Management and Remediation Services in 2010 and 2011

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184