Industry Description
This industry comprises establishments primarily engaged in providing human resources and human resource management services to client businesses and households. Establishments in this industry operate in a co-employment relationship with client businesses or organizations and are specialized in performing a wide range of human resource and personnel management duties, such as payroll, payroll tax, benefits administration, workers' compensation, unemployment, and human resource administration. Professional employer organizations (PEOs) are responsible for payroll, including withholding and remitting employment-related taxes, for some or all of the employees of their clients, and also serve as the employer of those employees for benefits and related purposes.
Cross-References. Establishments primarily engaged in--
Business Examples
Common types of business activities within NAICS 561330 - Professional Employer Organizations are:
- PEO (professional employer organizations)
- Labor leasing services
- Co-employment staffing services
- Employee leasing services
- Staff leasing services
- Professional employer organizations (PEO)
IBISWorld Industry Research Report
Professional Employer Organizations in the US (56133)
Revenue 2025
$196.7bn
Growth 2025
1.67%
Key Trends
Industry revenue has been more volatile during the past five years than usual due to high volatility in the labor market
An increase in the unemployment rate and a decrease in the LFPR have had a negative effect on industry performance
PEOs target larger businesses, where the level of penetration remains relatively low
Products and Services
Similar Industries
For some business types, there may be a similar industry to 561330 - Professional Employer Organizations that is a better classification match. Establishments primarily engaged in:
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NAICS Cross Reference
Listing employment vacancies and referring or placing applicants for employment--are classified in U.S. Industry 561311, Employment Placement Agencies.
IBISWorld industry research report
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NAICS Cross Reference
Supplying their own employees for limited periods of time to supplement the working force of a client's business--are classified in Industry 561320, Temporary Help Services; and
IBISWorld industry research report
NAICS Hierarchy 561330 - Professional Employer Organizations
NAICS Code 561330 - Professional Employer Organizations sits in the 2-digit Professional Employer Organizations sector. NAICS codes can be 2- to 6-digits and the further along the hierarchy, the more detailed and specific the category will be. Learn more about the structure of NAICS codes
2 Digits: 56
Sector Title: Administrative and Support and Waste Management and Remediation Services
3 Digits 4 Digits 5 Digits 6 Digits
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5611 Office Administrative Services
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56111 Office Administrative Services
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5612 Facilities Support Services
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56121 Facilities Support Services
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5613 Employment Services
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56131 Employment Placement Agencies and Executive Search Services
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56132 Temporary Help Services
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56133 Professional Employer Organizations
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5614 Business Support Services
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56141 Document Preparation Services
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56142 Telephone Call Centers
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56143 Business Service Centers
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56144 Collection Agencies
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56145 Credit Bureaus
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56149 Other Business Support Services
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5615 Travel Arrangement and Reservation Services
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56151 Travel Agencies
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56152 Tour Operators
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56159 Other Travel Arrangement and Reservation Services
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5616 Investigation and Security Services
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56161 Investigation, Guard, and Armored Car Services
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56162 Security Systems Services
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5617 Services to Buildings and Dwellings
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56171 Exterminating and Pest Control Services
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56172 Janitorial Services
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56173 Landscaping Services
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56174 Carpet and Upholstery Cleaning Services
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56179 Other Services to Buildings and Dwellings
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5619 Other Support Services
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56191 Packaging and Labeling Services
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56192 Convention and Trade Show Organizers
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56199 All Other Support Services
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5621 Waste Collection
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56211 Waste Collection
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5622 Waste Treatment and Disposal
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5629 Remediation and Other Waste Management Services
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56291 Remediation Services
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56292 Materials Recovery Facilities
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56299 All Other Waste Management Services
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NAICS Resources
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