US Administrative and Waste Management Services Sector NAICS 56
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Industry Summary
The 450,500 establishments in the administrative and waste management services sector are comprised of industries that provide routine support to other organizations. The sector includes firms that provide employment services, investigative and security services, travel arrangements and reservations, waste management and remediation, services to buildings and dwellings, and business, office, and administrative support services. Firms typically operate as third-party contractors and may serve a variety of industries or individual households.
Client Industries Vulnerable to Economic Change
Demand for administrative support and waste management services is driven by the financial performance of customer industries, which can be vulnerable to downturns in the economy.
Solid Waste Tonnage Rises, Recycling Rates Stall
Waste generation has risen steadily over time, and recycling and composting rates have increased as well.
Recent Developments
Jul 6, 2026 - Remote Work Remains Resilient
- The Wall Street Journal reports that work from home appears to have stabilized at levels far above those before the pandemic, despite high-profile return-to-office mandates from major employers. A monthly survey by economists at WFH Research found that 26% of paid, full workdays were done from home in May 2026, compared with 27% two years earlier and a Labor Department estimate of about 7% in 2019. Other data show office visits remain well below pre-pandemic levels, suggesting hybrid work has become a lasting feature of the US labor market. If office occupancies remain below historical norms, it could spell long-term impacts on demand for several types of administrative and support services, including janitorial, security, landscaping, facilities support, office administration, and business services.
- The US economy added 57,000 jobs in June 2026, according to the Bureau of Labor Statistics (BLS), and the unemployment rate dropped to 4.2%. June’s gains were significantly below the 115,000 jobs that economists surveyed by Dow Jones had expected. Weaker job growth in May was primarily due to a drop in the labor participation rate, which fell 0.3% percentage points to 61.5%, marking the lowest level since March 2021. June job growth was led by professional and business services (+36,000 jobs), social assistance (+25,000), healthcare (+22,000), and government (+8,000).
- Waste Dive reports that major waste companies are accelerating AI investments to improve routing, pricing, fleet operations, billing, and customer service. Executives at the Waste Leadership Summit said AI tools are helping reduce miles traveled, improve service reliability, detect contaminants, support predictive maintenance, and personalize pricing. Waste Connections plans to spend about $100 million on seven AI projects through 2027, while Republic Services expects AI efficiencies to add $100 million in earnings by 2028. Companies including WM, GFL Environmental, Casella Waste Systems, and Republic are also using AI to boost employee productivity, automate customer service, reduce customer churn, and improve margins.
- A recent Zety survey of 1,001 hiring professionals found that recruiters are increasingly scouting candidates in unconventional settings amid a flood of applicants, according to reporting by HR Dive. Some 59% said they feel comfortable finding candidates outside of work, and 52% said they have already done so in places such as restaurants, grocery stores, gyms, concerts, and dating apps. Popular talent pools include non-LinkedIn social media and social events like parties, where recruiters notice strong communication and interpersonal skills. Some 84% said off-the-clock encounters produced stronger candidates than formal channels. Still, 14% called the practice "very risky" regarding professional boundaries, and 41% called it "somewhat risky." A Glassdoor report noted that AI-generated applications have increased recruiter workloads, while a Monster report found that opaque hiring practices have led job seekers to apply to many positions at once.
Industry Revenue
US Administrative and Waste Management Services Sector
Industry Structure
Industry size & Structure
The administrative and waste management services sector is comprised of 450,500 establishments that employ 9 million workers and generate $1.4 trillion in annual revenue, according to government sources.
- The administrative and waste management services sector represents 3% of the nation's Gross Domestic Product (GDP) and employs 5.7% of the country's workers.
- The sector is fragmented with the 20 largest firms representing 17% of revenue.
- In addition to employer establishments, the administrative and waste management services sector has 2.9 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are services to dwellings (62%); office administrative services (12%); and business support services (9%). The owners of nonemployer firms typically perform the work and may outsource support functions like marketing and accounting.
- The administrative and waste management services sector has shed about 38,500 establishments annually, which equals about 10.6% of existing establishments. However, the sector has added about 42,900 new establishments annually, which is equivalent to 11.8% of existing establishments. As a result, the sector has an average growth rate of 1.2%.
Industry Forecast
Industry Forecast
US Administrative and Waste Management Services Sector Industry Growth
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