Office Administrative Services NAICS 561110
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Industry Summary
The 33,521 office administrative services companies provide a wide range of services that support the internal operation of a workplace. Firms reduce administrative burdens by providing contract talent resources and tools that enable clients to better control personnel costs by using services as needed. Service categories include bookkeeping and compilation, accounting, payroll, tax preparation, billing and record keeping, document processing and editing, copying and reproduction, strategic management consulting and implementation, information technology and network management, project management, human resources, and bundled services.
Labor-Intensive
The office administrative services industry is highly dependent on skilled workers, including accountants, bookkeepers, and experienced payroll professionals.
Increased M&A Activity in Business Process Outsourcing
US businesses are increasingly outsourcing front- and back-office functions to reduce overhead costs, generating business process outsourcing (BPO) growth that has produced strong valuations and a rise in mergers and acquisitions.
Recent Developments
Nov 6, 2025 - US Job Losses in 2025 Top 1 Million
- About 1.1 million American jobs have been cut so far in 2025, up roughly 65% from the same period last year, according to career services company Challenger, Gray & Christmas. In October alone, employers announced about 153,000 cuts, triple the cuts from September and a 140% increase year over year. The largest reductions came from the federal government (~292,000 cuts), followed by technology (~89,000), retail (~80,000), and non-profits (~17,800). Workforce reductions in technology are being driven largely by AI adoption, accounting for over 10,000 cuts so far this year, and contributing to a 36% increase in sector layoffs compared with 2024. Government spending cuts not only affect federal employees, but Department of Government Efficiency reductions to grants and research continue to ripple into the nonprofit sector. Rising tariffs also remain a significant factor in the ongoing wave of workforce reductions.
- There are more Americans unemployed than there are job openings for the first time since the pandemic, according to the US Bureau of Labor Statistics. There were 7.1 million job openings in the US in the month of July and 7.2 million unemployed workers. Available private sector jobs continued a downward trend for the second straight month to 6.4 million. New hires for the month went up slightly to 5.3 million, while the number of people quitting their jobs was flat at 3.2 million. Experts say the numbers indicate that unemployed workers have stayed out of the job market longer than usual, and that the shift reflects a dip in job openings rather than more people being laid off. The country’s aging population and US immigration policies have also knocked labor force participation to its lowest level since 2022.
- With more employers demanding a return to office (RTO) with the pandemic in the rear view, bosses are making changes to offices and office culture to lure workers. According to Scott Salmirs, CEO of workspace maintenance firm ABM Industries, RTO mandates will increase as employers now have the upper hand. Companies that streamlined operations and cut staff are leaving outdated buildings for smaller, high-quality space in central locations.”They’re also ditching their open-plan offices and adding more private spaces to make the space ‘more hospitable,’” said Salmirs. And employers must have good snacks and coffee, according to Salmirs, which matters greatly to employees. He also expects RTO mandates to be gradual, a “one more day” strategy designed to eventually get to four days a week in the office. Cleanliness and a healthy workplace are also important, with some companies hiring more cleaning staff to ensure worker comfort and buy-in.
- With 20% of Americans working remotely, the ability to work from anywhere no longer ties workers to specific geographic regions with high costs of living, and some smaller cities are now offering cash and other incentives to remote workers who move there. Smaller cities with declining populations have little clout to attract new employers to their areas and are instead courting telecommuters to spur economic growth. According to a report from relocation company MakeMyMove, cities such as New Albany, Indiana; Texarkana, Texas; Mayfield, Kentucky; and Jacksonville, Illinois; are floating perks like $5,000 relocation bonuses, free co-working spaces, rotary club memberships, start up grants, and even meetings with the mayor. It’s a trend that could become more widespread as the one-fifth of the population who works remotely (per the Bureau of Labor Statistics) continues to grow.
Industry Revenue
Office Administrative Services
Industry Structure
Industry size & Structure
The average office administrative services provider operates out of a single location, employs about 17 workers, and generates about $3 million annually.
- The office administrative services industry consists of about 33,520 firms that employ over 564,520 workers and generate about $101.9 billion annually.
- The industry is fragmented with the top 50 companies accounting for about 10% of industry revenue.
- Firms that generate less than $1 million annually account for over 50% of companies and 9% of industry revenue. Firms that generate $5 million or more annually account for 8% of companies and almost 65% of industry revenue.
- Large firms, such as ADP and Robert Half, may have international operations.
Industry Forecast
Industry Forecast
Office Administrative Services Industry Growth
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