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© Copyright 1997 by the Wyoming Department of Employment, Research & Planning


Services Industry:

Where Have We Been and Where Are We Going?

by: Carol Toups


This article features changes occurring in the Services industry from 1990 to 1996, along with projections for 1998 and 2005. Looking back to 1990, Retail Trade was ranked number one among all industries with the annual average employment at 37,789 or 19.8 percent of all employment. More recently in 1996, Services held Wyoming's top spot with an annual average employment of 45,652 (21.4%). Two major groups within Services are projected to have the most growth from 1998 to 2005: 1) Engineering, Accounting, Research, Management & Related Services and 2) Health Services. Health Services also had both the largest employment and wage increases from 1990 to 1996, with Social Services in second place for growth during this time.

The Services industry is comprised of sixteen major groups categorized by the Standard Industrial Classification (SIC) system. Please refer to these definitions of the two-digit SIC major group numbers for the tables presented:

The demand for Services employees is strongly associated with the increase in population (shown in the Figure; numbers for both figure variables were rounded to make the comparison more perceptible). There is a high correlation and statistical significance between Wyoming's population and Services employment (see Table 1). As the demographic make-up of Wyoming's population changes, employment make-up in the Services industry will also change (see Table 2 for projected employment changes). Other factors such as new technology, tourism, overall changes in the economy and social interaction also influence the demand for Services employees. Wyoming's 1996 population increased only because net births were higher than net deaths(1). With a slowing population growth and increases occurring only among the very young, there may be a shift of demand in Services. Groups that commonly accommodate the young, such as Amusement and Recreation Services, Educational Services and Social Services will possibly increase, while the demand for groups such as Business Services may decline.

In 1994, Retail Trade moved out of first place as the largest employment industry and Services moved in (see Table 3 for details of Services employment from 1990 - 1996). Local Government and Mining remained in third and fourth place, respectively, from 1990 to 1996. Mining wages have consistently remained at the top; the 1990 annual average weekly wage was $720 and by 1996 had climbed to $864. In comparison, the annual average weekly wage for Services rose from $286 in 1990 to only $347 in 1996. Services ranked tenth place in 1990 (out of only twelve industries) and remained there in 1996 (see Table 4). Wages for Agriculture ($253 in 1990, and $303 in 1996) and Retail Trade ($200 in 1990 and $238 in 1996) were the only two industries ranking lower than Services.

The 1996 Wyoming annual average weekly wage for all industries was $440. There were only four groups (which includes 15,317 employees or 33.6% of the workforce) in Services that had higher 1996 wages: Engineering, Accounting, Research, Management & Related Services; Legal Services; Health Services; and Miscellaneous Repair Services. The remaining 30,335 (66.4%) employees made well below the average wage. The number one predicted growing occupation of all industries from Services, Waiters & Waitresses, also happens to be the lowest paying job on the list of growing occupations(2). This seems to be the common broad picture for Services; most of the major groups are increasing, but the wages will remain typically low.


Carol Toups is a Senior Statistician with specializing in Covered Employment and Wages with Research and Planning.

1 Bureau of the Census

2 What Does the Future Have in Store for Wyoming's Labor Market: Wyoming 1998 and 2005, another Research & Planning publication (see the Publication Order Form for a complete list).



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Last modified on October 8, 1998 by David Bullard.