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 fairly steadily over time, and recycling and composting rates have increased as well.
Recent Developments
Apr 6, 2026 - Private Sector Adds Jobs in March
- In April, payroll firm ADP issued a report indicating that US private-sector payrolls increased by 62,000 in March 2026 and pay was up 4.5% compared with March 2025. Small businesses added 85,000 positions, but medium-sized businesses lost 20,000 jobs and large establishments shed 4,000 positions. Among specific sectors, education and health services saw the biggest gain in payrolls with 58,000 new jobs, followed by construction (30,000), information (16,000), natural resources and mining (11,000), and leisure and hospitality (7,000). ADP's chief economist, Dr. Nela Richardson, said, "Overall hiring is steady, but job growth continues to favor certain industries, including health care. In March, this solid performance was accompanied by a boost in pay gains for job-changers."
- Rising jet fuel costs tied to conflict in the Middle East are driving airlines worldwide to increase fares, add fees, and cut routes, reshaping travel demand and pricing, according to The Wall Street Journal. Rising jet fuel prices prompted airline warnings of fare hikes up to 20% and new surcharges, including increases by major international carriers. Airlines are also reducing less profitable flights to offset costs. For the travel arrangement services industry, these shifts complicate pricing transparency, booking strategies, and customer expectations, as fluctuating costs, added fees, and tighter capacity make it harder to secure affordable itineraries and maintain predictable margins.
- A new Federal Motor Carrier Safety Administration rule restricting certain non-citizen drivers from obtaining or renewing commercial driver’s licenses is expected to strain the waste management industry by reducing an already limited labor pool, according to Waste Dive. Companies such as Waste Pro say the rule could affect up to 20% of drivers in some regions, leading to service delays and operational disruptions. The industry already faces challenges in recruiting and training drivers, with hiring processes taking 60 to 75 days. Haulers warn that losing trained workers will be difficult to offset due to federal limits on driving hours and the time required to certify replacements. Industry groups and labor unions argue the rule could worsen driver shortages, disrupt collection routes, and impact essential sanitation services, while regulators say the changes are needed to improve safety and compliance.
- A growing trend known as “reverse recruiting” is emerging as white-collar job seekers pay recruiters to help them secure positions in a difficult labor market, according to The Wall Street Journal. Traditionally, companies paid recruiters to find candidates, but some job seekers now hire recruiters to connect them with employers, submit applications, or manage outreach. Services vary, with some charging a portion of a candidate’s salary after a hire, while others charge flat fees for application support. The shift comes as the job market tightens, with more unemployed workers than open roles in late 2025 and the average job search nearing six months, according to federal data. Companies such as Refer use AI tools to introduce candidates to hiring managers, while other agencies offer high-touch services that include résumé customization and direct outreach to companies. Some recruiters question the ethics and effectiveness of charging job seekers.
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 5.8% 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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