Janitorial Services NAICS 561720

Jul 28, 2025 - Stable Revenue, Reduced Job Volume in Q1

• Cleaning services providers – including residential and commercial cleaning, carpet cleaning, junk removal, and similar services - saw mixed results in Q1 2025, according to the Home Service Economic Report released by Jobber, a job tracking and customer management software firm. New cleaning work scheduled fell 4% in Q1, while revenue grew 5% compared to a year ago, attributable to an increase in average invoice size, driven by upselling and recurring service models. The cleaning segment saw revenue stability in the quarter, driven by smaller, recurring jobs. “The Q1 data shows a sector in transition—stable, but still under pressure from high borrowing costs and cautious consumer behavior,” according to Abheek Dhawan, SVP of Strategy & Analytics at Jobber. Consumers continue to increase their adoption of digital payments. The report noted that digital payments were about 47% of total payments in Q1, up from 43% a year ago.
• Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• Wage costs were up and employment was flat for janitorial providers in May 2025, year over year, according to recent data from the Bureau of Labor Statistics (BLS). Average wages at janitorial services increased 2.7% in May 2025 year over year, reaching $18.86 an hour for nonsupervisory employees. In the past decade, average wages in janitorial services increased 59%, higher than the 49.5% growth in overall private nonsupervisory employee wages. Employment by janitorial services grew 0.3% in May 2025 compared to a year ago. Janitorial businesses are monitoring pricing pressures resulting from an uncertain economic environment. Producer prices for janitorial services increased 2.8% in June 2025 compared to a year ago, per the BLS.
• According to a report in CleanLink, a significant upswing in demand for contract cleaning services by a range of business sectors is being driven by a greater emphasis on workplace cleanliness, hygiene, and the well-being of employees. Businesses are recognizing a boost in productivity levels connected to heightened cleanliness levels, in addition to fulfilling a fundamental operational necessity, per the report. Additional contract cleaning services being utilized include deep carpet cleaning to eliminate embedded contaminants, fogging for comprehensive disinfection, and targeted sanitation of high-touch areas. Companies are choosing contract cleaners for their flexibility to scale their services to meet the businesses’ needs and reduce the burden on internal administrative teams.