We recently updated our labor market data — through the third quarter of 2010 — and took a quick look at which industry sectors, if any, showed national growth from 2009-2010. Only a few sectors experienced growth, and very modest growth at that. The sector that added the most jobs was, not surprisingly, NAICS 62 – health care and social assistance (276K jobs). But maybe more surprising was No. 2 on the list: NAICS 56 – administrative and support and waste management and remediation (241K jobs).
NAICS 56 seemed curious to us so we decided to take a closer look at what was driving the growth. Administrative and support and waste management and remediation is a catchall category that comprises things like facilities support services, office administrative services, travel arrangement, waste collection, and waste treatment and disposal.
Here is a description from the NAICS website:
The Administrative and Support and Waste Management and Remediation Services sector comprises establishments performing routine support activities for the day-to-day operations of other organizations. These essential activities are often undertaken in-house by establishments in many sectors of the economy. The establishments in this sector specialize in one or more of these support activities and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: office administration, hiring and placing of personnel, document preparation and similar clerical services, solicitation, collection, security and surveillance services, cleaning, and waste disposal services.
The administrative and management activities performed by establishments in this sector are typically on a contract or fee basis. These activities may also be performed by establishments that are part of the company or enterprise. However, establishments involved in administering, overseeing, and managing other establishments of the company or enterprise, are classified in Sector 55, Management of Companies and Enterprises. These establishments normally undertake the strategic and organizational planning and decision making role of the company or enterprise. Government establishments engaged in administering, overseeing, and managing governmental programs are classified in Sector 92, Public Administration.
Given what has happened in the economy, this is not a big surprise. More and more people have been reported as working as contract workers — it’s cheaper for companies to do this and it is an easier way for people to use their skills to pick up part-time work from perhaps multiple companies. It will be interesting to see if this sector declines or grows as the economy slowly recovers.
To learn more about the growth, we filtered for the jobs that had the greatest positive change and job growth. Here is what we found: 21 of the industries in this sector showed some sort of growth, and these 21 industries grew by an average of 2.6% and added some 300,000 jobs. By far, most of the growth in this sector is because of temporary help services (NAICS 561320) and office administrative services (NAICS 561110).
|NAICS Code||Description||2009 Jobs||2010 Jobs||Change||% Change||2009 Establishments|
|561320||Temporary Help Services||1,842,678||2,059,057||216,379||12%||53,257|
|561110||Office Administrative Services||720,154||753,918||33,764||5%||43,930|
|561621||Security Systems Services (except Locksmiths)||140,277||146,610||6,333||5%||7,531|
|561920||Convention and Trade Show Organizers||77,896||80,498||2,602||3%||4,404|
|561210||Facilities Support Services||172,114||177,621||5,507||3%||3,388|
|561591||Convention and Visitors Bureaus||11,264||11,566||302||3%||1,042|
|562998||All Other Miscellaneous Waste Management Services||14,708||15,074||366||2%||1,463|
|561990||All Other Support Services||285,005||291,620||6,615||2%||20,389|
|561311||Employment Placement Agencies||215,825||220,673||4,848||2%||14,995|
|561410||Document Preparation Services||160,445||163,453||3,008||2%||9,078|
|562111||Solid Waste Collection||128,976||130,598||1,622||1%||8,002|
|561612||Security Guards and Patrol Services||633,560||641,480||7,920||1%||12,592|
|561910||Packaging and Labeling Services||63,491||64,103||612||1%||2,788|
|561599||All Other Travel Arrangement and Reservation Services||78,158||78,804||646||1%||4,205|
|562119||Other Waste Collection||12,644||12,748||104||1%||1,494|
|561790||Other Services to Buildings and Dwellings||235,124||236,776||1,652||1%||13,584|
|562991||Septic Tank and Related Services||28,385||28,580||195||1%||3,536|
|562920||Materials Recovery Facilities||13,632||13,650||18||0%||831|
|Source: EMSI Complete Employment, 3rd Quarter 2010|
Read a description of the following two industries. Pretty telling. These are all part-time positions that employers are outsourcing rather than staffing themselves. It is a good way to cut costs (think health insurance and full-time salaries) while still getting the work you need done.
Temporary help services – This industry comprises establishments primarily engaged in supplying workers to clients’ businesses for limited periods of time to supplement the working force of the client. The individuals provided are employees of the temporary help service establishment. However, these establishments do not provide direct supervision of their employees at the clients’ work sites.
Cross-References. Establishments primarily engaged in–
- Providing human resources and human resource management services to clients–are classified in Industry 561330, Professional Employer Organizations;
- Supplying farm labor–are classified in U.S. Industry 115115, Farm Labor Contractors and Crew Leaders;
- Providing operating staff to perform a combination of services to support operations within a client’s facilities–are classified in Industry 561210, Facilities Support Services;
- Listing employment vacancies and referring or placing applicants for employment–are classified in Industry 561310, Employment Placement Agencies; and
- Representing models, entertainers, athletes, and other public figures as their agent or manager–are classified in Industry 711410, Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures.
Office administrative services – This industry comprises 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 for others on a contract or fee basis. These establishments do not provide operating staff to carry out the complete operations of a business.
Cross-References. Establishments primarily engaged in–
- Holding the securities or financial assets of companies and enterprises for the purpose of controlling them and influencing their management decisions–are classified in U.S. Industry 551111, Offices of Bank Holding Companies or U.S. Industry 551112, Offices of Other Holding Companies;
- Administering, overseeing, and managing other establishments of the company or enterprise (except government establishments)–are classified in U.S. Industry 551114, Corporate, Subsidiary, and Regional Managing Offices;
- Government establishments primarily engaged in administering, overseeing, and managing governmental programs–are classified in Sector 92, Public Administration;
- Providing computer facilities management–are classified in U.S. Industry 541513, Computer Facilities Management Services;
- Providing construction management–are classified in Sector 23, Construction, by type of construction project managed;
- Providing farm management–are classified in U.S. Industry 115116, Farm Management Services;
- Managing real property for others–are classified in Industry 53131, Real Estate Property Managers;
- Providing food services management at institutional, governmental, commercial, or industrial locations–are classified in Industry 722310, Food Service Contractors;
- Providing management advice without day-to-day management–are classified in Industry 54161, Management Consulting Services;
- Providing both management and operating staff for the complete operation of a client’s business, such as a hotel, restaurant, mine site, or hospital,–are classified according to the industry of the establishment operated; and
- Providing only one of the support services (e.g., accounting services) that establishments in this industry provide–are classified in the appropriate industry according to the service provided.
If you would like to learn more about this or other industries, feel free to contact us.
Note: The data and analysis in the post was produced via Analyst, a web-based tool for looking at labor market information.