US Professional and Technical Services Sector

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.

Sep 3, 2026 - Companies Push Managers to Take on Bigger Teams

• Corporate America is taking another swing at middle management, with bosses who oversee only a handful of employees becoming prime targets for cuts. Uber plans to reduce its “micro-teams,” those with just one or two direct reports, by nearly half as part of a broader restructuring that will eliminate about 3,300 jobs and leave the company with 20% fewer managers. The trend extends well beyond Uber: Intel has cut its management layers from 12 to six, Google reduced managers overseeing small teams by 35% last year, and Coinbase is limiting the number of layers below senior leadership. Companies increasingly want managers to oversee larger teams while also doing more hands-on work themselves. That can leave remaining bosses stretched thin and employees with less access to supervisors, while also making management less appealing: Robert Half found 40% of Gen Z professionals want promotions that don’t require managing people.
• A large share of white-collar workers are finding that simply staying employed no longer means moving ahead. A study by the Burning Glass Institute and New York University found that roughly one in four professionals experiences a midcareer stall, going at least five years without a meaningful raise or promotion. The problem cuts across industries and has persisted even during strong labor markets, while today’s slower hiring and corporate efforts to trim management ranks are making advancement tougher. Early career momentum appears especially important: workers who later stalled averaged just 30% wage growth during their first decade, compared with 71% among those who continued progressing. The trend raises concerns about employee retention and engagement, particularly when organizations have fewer leadership positions available and employees see limited opportunities to build skills, take on broader responsibilities, or move into higher-paying roles.
• The US labor market is increasingly constrained by a shrinking labor pool and widening skills gap, making hiring alone an inadequate solution. According to the Bureau of Labor Statistics (BLS), the economy lost 23,000 jobs in July, while previously reported May and June gains were revised downward by 103,000 jobs. Gartner’s Jamie Kohn notes that falling labor force participation alongside declining unemployment indicates fewer people are available to work. Employers also face a skills mismatch: only about 3% of job postings currently list AI skills, according to Gartner, even as workers increasingly need capabilities to perform complex tasks and oversee AI output. Labor mobility is also weak; BLS data shows the quit rate at its lowest sustained level since 2020, while Gartner’s employee intent-to-stay index fell from 100 in Q1 2024 to 80 in Q1 2026, suggesting many workers are staying because of economic uncertainty rather than engagement.
• After more than a year of hiring freezes and workforce reductions driven by economic uncertainty and expectations that AI would replace workers, many large employers are beginning to hire again. AI works best alongside people rather than instead of them. The Wall Street Journal reports that companies including Alphabet, CSX, Booz Allen Hamilton, ServiceNow, and Snap-on have recently announced plans to expand headcount in areas such as AI, cloud computing, cybersecurity, sales, and transportation. Booz Allen, whose workforce fell 7.5% year over year to about 30,900 employees after federal contract cuts, said it now needs to accelerate hiring to meet demand. Human resources software provider Lattice says many employers are also resuming entry-level recruiting after realizing AI still requires human oversight and AI-skilled workers. The shift suggests companies are recalibrating expectations about AI's near-term impact on employment rather than preparing for widespread workforce replacement.

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.