US Professional and Technical Services Sector NAICS 54
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Industry Summary
The 872,305 professional and technical services establishments in the US provide specialized expertise to clients and typically operate as third-party contractors. As opposed to producing a physical product, professional service providers are primarily knowledge-based businesses that offer advice and make available the skills of their employees.
Dependence on Expensive, Skilled Labor
The professional and technical services industry is dependent on highly skilled labor and jobs that command high wages.
Dependence on Government Projects
The US government is a major consumer of professional services, with federal, state, and local agencies serving as key clients across the sector.
Recent Developments
Apr 9, 2026 - AI Could Reshape More Than Half of US Jobs
- AI will reshape 50%-55% of US jobs over the next three years, according to Boston Consulting Group (BCG), fundamentally changing what workers do even when their positions survive. Over a five-year horizon, 10%-15% of jobs could be eliminated entirely. BCG examined tasks and government labor data associated with 1,500 occupations and found the effects will vary significantly by industry. Software engineering demand may actually increase as AI drives down costs and clears massive project backlogs, while call center jobs face widespread elimination since lower costs won't generate proportionally more customer interactions. Jobs requiring physical presence or interpersonal skills (plumbers, therapists, and similar roles) will see little disruption. Rather than defaulting to layoffs, experts urge businesses to invest in re-skilling workers and redeploying them to areas less exposed to automation. New job categories will likely emerge from the AI era, though what they might look like remains unclear.
- A new MetLife report finds that while 83% of HR decision-makers say AI helps employees work faster and 80% say it has become part of everyday tasks, 67% report it is also creating friction and mistrust between employers and employees. Workers' concerns include ethical and safety risks like bias and misinformation (61%), fear of job obsolescence (59%), and feeling pressure to compete with AI directly (24%). MetLife's head of US group benefits cited worry about job losses and the need to adapt as key drivers of workplace tension. Experts say alleviating these concerns requires not just technology deployment, but also change management and workforce upskilling. A separate BetterUp/Stanford study adds further complexity, finding that 53% of workers admit to submitting "workslop" - low-quality, AI-generated content - while 40% reported receiving such content in the previous month, further undermining collaboration and trust.
- US job growth is increasingly carried almost entirely by healthcare, highlighting a labor market that is expanding unevenly. Nearly all of the 130,000 jobs added in January 2026 came from healthcare or healthcare-related roles, while sectors such as finance, information, retail, transportation and government shed workers, and gains in construction and manufacturing were comparatively modest. Economists say healthcare has quietly propped up US employment for more than a year as other industries retrenched, reflecting strong demand from an aging population and the sector’s relative insulation from automation and economic downturns. That stability has helped keep overall job growth positive even as large parts of the economy stall, though some warn that relying so heavily on a single industry carries risks if hiring slows or policy shifts take effect. For now, healthcare’s broad geographic footprint and steady demand are acting as a key stabilizer in a cooling US labor market.
- The US job market is in a “deep freeze,” with hiring at unusually low levels despite unemployment remaining relatively modest, making it harder for job seekers to find work. Employers hired just 5.3 million workers in December 2025, pushing the hires rate well below pre-pandemic norms, even as layoffs remain limited and job growth slowed to its weakest pace outside a recession since 2003. The slowdown reflects a mix of factors, including uncertainty over tariffs, high interest rates that squeeze smaller firms, lingering overstaffing in tech, and fewer workers quitting their jobs, which reduces the need for replacement hiring and reinforces weak labor movement. Immigration restrictions and an aging population have further shrunk the pool of available workers and dampened demand. AI may also be weighing on hiring at the margins - particularly for younger workers - even if economists say it has yet to significantly move the overall labor market.
Industry Revenue
US Professional and Technical Services Sector
Industry Structure
Industry size & Structure
The professional and technical services sector is comprised of 872,305 establishments that employ 10.1 million workers and generate $2.7 trillion in annual revenue, according to government sources.
- The professional services sector represents 8.1% of the nation's Gross Domestic Product (GDP) and employs 7% of the country's workers.
- The sector is fragmented with the 20 largest firms representing 11% of revenue.
- In addition to employer establishments, the professional services sector has 4 million owner-operated establishments with no employees. Subsectors with the highest numbers of non-employer establishments are management, scientific, and technical consulting services; accounting, tax preparation, bookkeeping, and payroll services (10%); and computer systems design and related services. The owners of non-employer establishments typically perform the work and may outsource support functions like marketing and accounting.
- The professional and technical services sector is forecast to grow its employment base by 10.5% overall by 2033, which is much higher than the national average of 4% for all jobs, according to the Bureau of Labor Statistics.
Industry Forecast
Industry Forecast
US Professional and Technical Services Sector Industry Growth
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