US Administrative and Waste Management Services Sector NAICS 56

May 2, 2025 - US Economy Adds Jobs Despite Tariff Concerns

• In April 2025, the US economy added 177,000 jobs, and the unemployment rate remained steady at 4.2%, according to the Bureau of Labor Statistics (BLS). April’s job report suggests the labor market remains healthy even as the Trump administration's tariff rollouts have caused jitters for consumers, businesses, and markets, according to The Wall Street Journal. However, some economists expressed concern that the longer tariff-related uncertainties linger, the more cautious companies may become about hiring and investment. A steady job market is a key demand driver for administrative services, especially employment services.
• The Trump administration’s trade war threatens the recovery of the US office property market, according to The Wall Street Journal. While office leasing activity in the first quarter of 2025 was the strongest since 2019, some businesses are putting plans for new space on hold amid economic uncertainty and recession fears brought on by shifting trade policies. If a slowing economy leads to weaker hiring or layoffs, companies will likely trim their office occupancy to reduce costs. Tariffs could also trigger inflation and higher interest rates, chilling new office development activity. The gradual recovery of the office market is important for cities that have struggled since the pandemic. Healthy office occupancy levels support demand for several types of administrative services, including office and facilities support, security services, landscaping, janitorial, and pest control.

• The Trump administration’s tariff policies will impact recyclable plastics markets differently based on several variables, according to Waste Dive. On April 9, the Trump administration paused its reciprocal tariff agenda for 90 days for most countries but left in place a baseline 10% import duty on all countries except China, which faces total tariffs of 145%. Canada and Mexico are not subject to the new 10% baseline tariffs, and goods trading under the US-Mexico-Canada Agreement (USMCA) will remain duty-free. US recycled PET trade between the US, Canada, and Mexico doesn’t face tariffs because PET complies with USMCA. However, polyethylene (PE) and polypropylene (PP) imports face varying tariff rates based on the country of origin. Retaliatory tariffs by US trading partners could also make US recycled plastics less competitive in global markets. China and the European Union are key export markets for US PE.
• The Trump administration’s efforts to reduce the size of the federal workforce is leaving some civil servants looking for work in a challenging market for white-collar jobs, according to The Wall Street Journal. Employment services professionals suggest that some ousted federal workers may not have the skills corporate leaders seek, and some might face age discrimination as the federal workforce skews older than the national average. The Office of Personnel Management offered buyouts to about 2.3 million federal employees in early February. As of mid-February, about 65,000 accepted the buyout, which allows them to continue to be paid until September without working. Employment services insiders note that the state and local government jobs market remains robust, but the duties for those positions often occur outside an office.