NAICS 61

Educational Services

NAICS 61 Educational Services: K-12, higher education, vocational training, and ed-tech trends.

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 61 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
3.9M
US Census CBP · 2023 · NAICS 2017
Establishments
118K
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$197.7B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$50,335
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$89.6B
US Census Economic Census · 2022 · NAICS 2017
gdp share
1.1%
BEA GDP-by-Industry · 2025 · NAICS 2017
value added
$347.2B
BEA GDP-by-Industry · 2025 · NAICS 2017

Industry Overview

NAICS 61 covers institutions delivering instruction across the full education lifecycle—from K-12 public and private schools through postsecondary degree programs, vocational training, and adult continuing education. The K-12 system operates roughly 130,000 schools organized into approximately 13,000 local school districts, funded primarily through local property taxes and state per-pupil formulas, with federal Title I allocations under the Elementary and Secondary Education Act (ESEA, currently authorized as the Every Student Succeeds Act) supplementing funding for high-poverty schools. Higher education is dominated by large state university systems: the University of California, State University of New York, and Texas A&M systems each enroll over 200,000 students. Private nonprofit institutions—Harvard, Stanford, MIT—hold endowments that exceed the GDP of small nations, while private for-profit chains like the University of Phoenix and Southern New Hampshire University compete on online enrollment scale. The Department of Education administers the Federal Student Aid programs (Pell Grants, Direct Loans) that channel over $100 billion annually to students, making the federal government the sector's single largest financial participant. Regional accreditation bodies such as the Higher Learning Commission and the Southern Association of Colleges and Schools Commission on Colleges serve as the gatekeepers for institutional eligibility to receive federal financial aid, giving accreditation decisions direct economic consequences.

Who Uses These Reports

Trusted by professionals who need verified federal data to make decisions

Investors & PE Firms

Size markets, validate deal theses, and benchmark targets with verified federal data before committing capital

Consultants & Advisors

Deliver data-backed recommendations to clients with sourced and cited industry metrics — Census, BLS, and FRED

Founders & Operators

Validate market entry, benchmark against industry averages, and present credible data to investors and boards

Corporate Strategy Teams

Support expansion planning, M&A due diligence, and executive reporting with NAICS-classified industry data

See what's inside a report

Market sizing, workforce analysis, competitive landscape, regulatory environment — all sourced from Census, BLS, FRED, and SEC EDGAR.

Industry Trends

15%

Post-pandemic enrollment recovery is uneven: community colleges lost over 15% of enrollment between 2019 and 2023 and have not recovered, while selective four-year institutions report record application volumes—a divergence that tracks income and demographic stratification in higher education access.

02

The Supreme Court's 2023 Students for Fair Admissions v. Harvard decision eliminated race-conscious admissions, forcing selective institutions to redesign holistic review processes and increase socioeconomic-based recruitment to maintain class diversity without explicit racial consideration.

03

State-level universal school choice expansion—Florida's voucher program, Arizona's Empowerment Scholarship Accounts, and similar programs in Iowa and Utah—is redirecting public funds to private and homeschool settings, with over 30 states now operating some form of publicly funded private-school choice program.

CBE

Competency-based education models and non-degree credentials are gaining employer acceptance: Google Career Certificates, Coursera Professional Certificates, and Western Governors University's CBE degree programs offer alternatives to seat-time-based credit accumulation, pressuring traditional institutions to demonstrate return on investment.

SAVE

Student loan policy volatility—from the Biden administration's SAVE repayment plan to its partial judicial blocking and ongoing litigation—creates enrollment uncertainty for institutions whose prospective students weigh debt burden against expected earnings, particularly at mid-tier private colleges with limited financial aid budgets.

Subsectors

Browse deeper into the NAICS hierarchy.

Frequently Asked Questions

What is NAICS 61? ▾
NAICS 61 classifies establishments providing instruction and training. Its subsectors include elementary and secondary schools (6111), junior colleges (6112), colleges and universities (6113), business and technical schools (6114-6115), and other educational services like tutoring and exam preparation (6116-6117). The sector spans public institutions funded through government appropriations and private entities funded through tuition, with the Department of Education's Federal Student Aid programs linking federal funding eligibility to regional accreditation status.
How is K-12 education funded in the United States? ▾
K-12 funding comes from three levels: local property taxes (typically 40-50% of total), state per-pupil funding formulas (40-45%), and federal sources (8-10%), primarily through Title I of the Every Student Succeeds Act for high-poverty schools and IDEA for special education. Funding adequacy varies enormously by state and district—litigation under state education clauses (such as New Jersey's Abbott v. Burke) has driven court-ordered funding reforms in over 20 states. Per-pupil spending ranges from roughly $8,000 in Utah to over $25,000 in New York.
What is the role of accreditation in higher education? ▾
Regional accrediting bodies—the Higher Learning Commission, Middle States Commission, Southern Association of Colleges and Schools, and others—evaluate institutional quality and grant the accreditation status required for students to receive federal financial aid. Without accreditation, an institution's students cannot access Pell Grants or federal student loans, effectively making accreditation an economic survival requirement. The Department of Education recognizes accrediting agencies but does not directly accredit institutions, creating a quasi-regulatory structure that has faced criticism for both insufficient rigor and excessive gatekeeping.
How has the for-profit college sector changed since 2010? ▾
The for-profit postsecondary sector peaked around 2010-2012 with over 2 million students enrolled. Department of Education Gainful Employment regulations, which tied federal aid eligibility to graduate debt-to-earnings ratios, triggered closures and enrollment declines at chains like ITT Technical Institute (closed 2016) and Corinthian Colleges (closed 2015). State attorneys general in California, Massachusetts, and elsewhere pursued fraud claims. Surviving operators like University of Phoenix (owned by Apollo Education Group) and Grand Canyon University have contracted or converted to nonprofit status to stabilize enrollment.
Which states are leading school choice expansion? ▾
Florida operates the largest school choice program through its Family Empowerment Scholarship, which was expanded in 2023 to universal eligibility regardless of family income. Arizona's Empowerment Scholarship Accounts allow parents to direct state per-pupil funds to private schools, homeschool expenses, or tutoring. Iowa, Utah, Indiana, and Arkansas enacted or expanded choice programs in 2023-2024. Opponents cite diversion of funding from public schools, while proponents argue that funding should follow the student. The educational impact data remains contested, with studies from the National Bureau of Economic Research showing mixed achievement effects across different program designs.

Questions about how we source industry data? See our data sources FAQ.

Don't see your industry?

We can generate a report for any NAICS-classified industry in the US. Professional PDF delivered in 48 hours.