US Administrative and Waste Management Services Sector NAICS 56

Jun 6, 2026 - ADP: Steady Job Growth in May

• In June, payroll firm ADP reported that US private-sector payrolls increased by 122,000 in May 2026, up from the revised April gain of 105,000. ADP noted that hiring was more broad-based in May than in recent years, with employers of all sizes adding workers. Small businesses added 67,000 jobs, large businesses added 40,000, and mid-sized businesses added 17,000. Among specific sectors, education and health services saw the largest employment gain with 57,000 new jobs, followed by trade, transportation, and utilities (36,000), professional and business services (11,000), construction (8,000), leisure and hospitality (8,000), financial activities (7,000), other services (4,000), and manufacturing (3,000). The information sector lost 9,000 jobs in May, and the natural resources and mining sector shed 3,000 positions.
• According to Yardi Matrix, the national office vacancy rate fell to 17.6% in April, down 210 basis points year over year. Yardi suggests that the uncertainty surrounding the accelerating adoption of artificial intelligence is expected to reshape office demand and how companies use workspace. Yardi Matrix noted that coworking and flexible office options are positioned to benefit as businesses seek shorter-term, adaptable arrangements amid changing workforce needs. Researchers outlined several potential AI-driven outcomes, including worker productivity gains, significant job displacement, or an economic downturn tied to unsuccessful AI investments. Regardless of the outcome, demand is expected to shift away from large offices with rigid lease structures and toward more flexible workplace solutions. These issues could impact demand patterns for several segments of the administrative services sector, including janitorial, business services, office administration, landscaping, security, and pest control.

• Waste Dive reports that major publicly traded solid waste and recycling companies spent nearly $700 million on mergers and acquisitions in Q1 2026, down from about $1.5 billion a year earlier. Republic Services led at $437 million, while WM reported no deals. WM remains focused on integrating Stericycle and expects limited tuck-in acquisitions later this year. Republic continues pursuing deals in core and new markets, with about 90% tied to recycling and waste, and aims to exceed $1 billion in acquisitions for the year. Waste Connections and GFL Environmental signaled continued or increased M&A activity, with GFL emphasizing long-term growth. Casella Waste Systems expanded its regional footprint through multiple deals, including Mountain State Waste and Star Waste Systems.
• 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.