US Administrative and Waste Management Services Sector NAICS 56

Unlock access to the full platform with more than 900 industry reports and local economic insights.
Get access to this Industry Profile including 18+ chapters and more than 50 pages of industry research.
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 and Recycling Rates Rise over Time
Waste generation has risen fairly steadily over time, and recycling and composting rates have increased as well.
Recent Developments
Sep 4, 2025 - AI Impacts Entry-Level Jobs
- AI is reducing entry-level job opportunities for some workers, especially young people, according to The Wall Street Journal. New research by economists at Stanford University suggests generative AI tools are reducing demand for certain types of entry-level positions. The study found that AI is having the most significant impact on jobs that are increasingly easy to automate, including entry-level positions in software coding, customer service, translation services, and receptionists. Employment for software developers ages 22 to 25 fell 20% between the 2022 peak and July 2025. The researchers found that the labor market effects of AI weren’t all adverse. Employment improved for job descriptions that can be augmented by AI rather than replaced. However, the augmentation effect was not enough to offset the reduction in employment in roles that can be automated with AI.
- Municipal solid waste landfills in the US could cut methane emissions in half compared to a 2023 baseline, and biogas revenue could more than cover implementation costs, according to a recent study by nonprofit Energy Vision and reporting by Waste Dive. Adding gas collection and control systems in landfills would cost an estimated $1.3 billion but could yield about $1.9 billion in biogas revenue. The proposed improvements include early gas collection, real-time monitoring, and targeting high-emitting landfills lacking controls. These upgrades would reduce emissions significantly, even with complete food waste diversion. While federal regulations have eased, states like California and Colorado are tightening rules, and operators are pursuing biogas opportunities.
- Providers of lawn care and landscaping – “Green” services – saw conditions improve in the second quarter of 2025 after a slow start to the spring season, according to the recently released Home Service Economic Report by Jobber, a job tracking and customer management software firm. Amid high interest rates and inflation, consumers are focusing on maintenance instead of taking on large projects. However, the green sector saw a 2.5% increase in new work bookings in Q2 compared to the same period in 2024. Green firms’ median revenue increased 5.8% in the second quarter over a year earlier, and average invoice size grew by 3.7% over the same period. To maintain momentum into the slower third-quarter season, Jobber suggests green firms focus on client retention and upselling existing customers on preventative care services.
- A shooting attack at a Park Avenue office building in New York City in late July that left four people dead is prompting some large companies and building owners to review their security protocols, according to The Wall Street Journal. Security at the building was tight, including armed guards, badge-enabled turnstiles with glass gates, and security cameras. However, experts suggest that it is difficult to stop a well-armed assailant intent on harm who has no regard for their safety. In the wake of the shooting, some security firms and consultants noted an immediate uptick in inquiries from large employers seeking reevaluations of their security policies. Some firms are installing AI-enabled security cameras and software that can detect a weapon and immediately trigger a lockdown or disable elevators. Positioning lobby guards behind bulletproof glass is another solution.
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 9.1 million workers and generate $1.3 trillion in annual revenue, according to government sources.
- The administrative and waste management services sector represents 3.1% of the nation's Gross Domestic Product (GDP) and employs 6.1% 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

Vertical IQ Industry Report
For anyone actively digging deeper into a specific industry.
50+ pages of timely industry insights
18+ chapters
PDF delivered to your inbox