Getting to Know the Administrative and Waste Services Sector

by Dallas Fridley

January 17, 2019

The administrative and support, waste management and remediation services sector – or more succinctly, administrative and waste services – is part of the professional and business services super-sector. The NAICS industry classification system defines the administrative and waste services sector as establishments performing support activities for the day-to-day operation of other organizations (and in some cases, households). These essential support activities include office administration, hiring and placement, document preparation, clerical services, security and surveillance, cleaning and waste disposal services, and others.

The administrative and waste services sector is comprised of 29 detailed NAICS industries. In 2017, Oregon’s administrative and waste services sector consisted of about 7,300 establishments, providing nearly 101,400 jobs. The sector represented about 5.4 percent of Oregon’s total employment across industries. Nationally, the administrative and waste service sector represented 6.3 percent of all jobs.
Its largest industry, temporary help services, averaged about 35,500 jobs in 2017, representing 35 percent of the administrative and waste services sector’s employment. Throw in telephone call centers, with 11 percent of the sector’s jobs, janitorial services (10%), and landscaping services (10%), and the top four industries held two-thirds of the sector’s 101,400 jobs.

The administrative and waste services sector includes two sub-sectors, administrative and support services, and waste management and remediation services. Administrative and support services represented 95 percent of the sector’s jobs in 2017 and included its four largest industries, identified above, along with 20 additional industries. Waste management and remediation services averaged just over 5,500 jobs or 5 percent of the sector’s 2017 employment, with five industries. Out of those 5,500 jobs, waste collection represented about 2,800 jobs in 2017.

Employment Growth & Projected Growth

Employment in administrative and waste services rose to 101,400 in 2017, an increase of just 0.5 percent or about 500 jobs over 2016. Industry code changes in 2017 moved more than 1,600 jobs out of the administrative and waste services sector, limiting its growth considerably. Looking back to 2007, employment rose by nearly 5,300 jobs or 5.5 percent over the decade. Industry code changes over the 2007 to 2017 period were less significant, resulting in a net loss of about 800 jobs. Comparatively, Oregon’s total all industries employment rose by 9 percent between 2007 and 2017. Nationally, the administrative and waste services sector gained 8.1 percent between 2007 and 2017, compared with 6.3 percent for all industries.

Temporary help services, the largest industry in the administrative and waste services sector, lost jobs from 2007 to 2017, falling by 3 percent (-659 jobs) to average 35,526. Telephone call centers, the number two industry based on employment, fell 1 percent shy of its 2007 average (-94) with 10,747 jobs in 2017. Landscaping services, ranked third in 2017 with 10,295 jobs, rose by 10 percent over the decade (+807), while janitorial services climbed 2 percent (+169) to 10,216.

A few standout industry performances over the 2007 to 2017 period should be noted , starting with the administrative and support services sub-sector producing 99 percent of the sector’s job growth. Employment placement agencies excelled, rising by 1,639 jobs over the decade (+252%) to average 2,252 in 2017. Security and armored car services also impressed, rising by 1,689 jobs to average 6,315 in 2017, an increase of 37 percent. Other travel arrangement services rose by 1,110 jobs over the decade to 1,714 (+124%), but traditional travel agencies lost 750, falling to 775 (-76%). Office administrative services also grew rapidly between 2007 and 2017, rising by 714 jobs or 79 percent to average 1,605.

The waste management and remediation sub-sector produced a gain of about 50 jobs or less than 1 percent to average 5,517 in 2017. Remediation services led the five industries found in waste management and remediation, rising by 318 jobs or 46 percent over the decade to average 1,010. Waste collection finished a close second, rising by 311 or 12.3 percent from 2007 to 2017 to average 2,840. But waste treatment and disposal cut about 800 jobs, falling to 917, a loss of nearly 47 percent.
Oregon’s private industry employment is forecast to rise by 13 percent between 2017 and 2027. Administrative and waste services is part of the professional and business services super-sector, which is projected to exceed Oregon’s private industry average, rising by 17 percent over the decade. The professional and business services super-sector also includes professional and technical services and management of companies and enterprises. Management of companies and enterprises is forecast to rise by 28 percent or 13,000 jobs over the decade to reach 60,100. Professional and technical services is also expected to enjoy rapid growth, rising by 20 percent or 18,400 to total 112,600. Administrative and waste services is expected to grow much more slowly, rising by 10 percent, an increase of 9,800 jobs, to total 111,100.

Payroll and Average Pay

Oregon’s administrative and waste services sector produced $3.6 billion in payroll in 2017, growing by $142.6 million or 4 percent over 2016. Since 2007, payrolls in administrative and waste services rose by just over $1.0 billion or 42 percent. Administrative and waste service paid below average wages, at $35,873 in 2017, roughly 30 percent or $15,244 below Oregon’s $50,483 private-industry average.

Payrolls in the administrative and support services sub-sector totaled around $3.3 billion, representing 92 percent of the sector’s total. Administrative and support services pay fell slightly below the sector’s average, at $34,932. Waste management and remediation services shelled out $288 million or 8 percent of the sector’s total payroll. With 8 percent of the sector’s payroll and 5 percent of its jobs, waste management and remediation service boasted above average pay, at $52,210 in 2017, exceeding Oregon’s private industry average by about 3 percent.

The sector’s four largest industries included its lowest paying, with wages in janitorial services averaging just $21,454 in 2017. Temporary help services also fell below the sector average, at $33,916, while annual pay in landscaping services averaged $34,694. Telephone call centers offered slightly better pay than the sector as a whole, at $37,135. Six industries (out of 29) paid wages that exceeded Oregon’s 2017 private industry average, led by office administrative services at $73,430. The remaining industries with above average pay included convention and trade show organizers ($65,611), credit bureaus ($60,781), waste treatment and disposal ($57,874), security systems services ($55,204), and waste collection ($53,996).

Workforce Characteristics

Workers in Oregon’s administrative and waste services sector tend to be younger with comparatively lower educational attainment. One out of four workers in the administrative and waste services sector were age 25 to 34 in 2017, compared with 22 percent for all Oregon industries. Workers age 45 and older held 40 percent of administrative and waste services jobs, compared with 44 percent across all Oregon industries.

Workers with a bachelor’s degree or advanced degree held just 19 percent of administrative and waste services jobs compared with 24 percent of workers across all Oregon industries. Workers with education attainment at or below a high school diploma or equivalent (no college), held 39 percent of administrative and waste services jobs in 2017, compared with 35 percent for all Oregon industries.

The youngest workers in administrative and waste services, ages 14 to 18 and 19 to 21 years, enjoyed a slight earnings advantage over all Oregon industries. The group’s highest earnings went to workers age 45 to 54, where administrative and waste services paid $3,519 per month. Oregon’s all industry earnings were likewise highest for the 45 to 54 age group, reaching $5,257 in 2016 and leaving a gap of $1,738 or 33 percent compared with administrative and waste services.

Turnover rates in administrative and waste services exceeded the rate for all Oregon industries by a substantial margin. Across all industries, turnover reached 9.6 percent in 2016, compared with 17.2 percent in administrative and waste services. As turnover is defined as an employee departing an employer’s payrolls within a given quarter, high turnover is likely due to temporary help services employment.

Takeaways for Administrative and Waste Services

Administrative and waste services includes a wide range of economic activities although its employment profile is skewed by the temporary help services industry. Payrolls in administrative and waste services reached $3.6 billion in 2017 but its average pay fell 30 percent below Oregon’s private-industry pay. Only six of its 29 industries produced above average pay in 2017 and its four largest industries, representing two-thirds of its jobs, were low-paying. Workers in administrative services tend to be younger than average and have a lower level of education attainment while working in an industry sector with a much higher than average turnover rate.

 


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