Administrative support services are shifting to larger companies

Andrey Kamenov, Ph.D. Probability and Statistics

Another subsector showing interesting employment dynamics is Administrative Support and Services. During the last years, it has been posting steadily increasing employment numbers.

In the most recent County Business Patterns data though, it seems as if the growth has slowed down for all but the largest companies (500+ employees). While the growth in the other two size classes, small (less than 100 employees) and medium (from 100 to 499) companies, has been only marginal, almost 300,000 jobs were created by the largest companies since the previous data release.

Note that despite the fact that similar decreases in employment numbers were registered in medium and large sized businesses since 2008, the larger ones have been showing visibly better recovery so far.

Interestingly, the average payroll distribution is somewhat non-standard here: as you can see, medium companies pay around 20 percent less (on average) than both smaller and larger ones. Note also that the employment growth doesn’t seem to have had any visible effect on the payroll.

A very impressive growth of employment in the subsector in California and Florida immediately catches our attention on the map. Other than that, most of the larger states show growth percentages in the lower single-digits. Massachusetts is the only state that posted a significant negative change in the last 12 months.

Source: the US Census Bureau County Business Patterns data

Discuss this article on our forum with over 1,900,000 registered members.

About Andrey Kamenov

Andrey Kamenov, Ph.D. Probability and Statistics

Andrey Kamenov is a data scientist working for Advameg Inc. His background includes teaching statistics, stochastic processes and financial mathematics in Moscow State University and working for a hedge fund. His academic interests range from statistical data analysis to optimal stopping theory. Andrey also enjoys his hobbies of photography, reading and powerlifting.

Other posts by Andrey Kamenov:

Leave a Reply

Your email address will not be published. Required fields are marked *