NAICS

1. NAICS TM Implementation of NAICS: North American Industry Classification System

2. Whatis NAICS? • New Industry Classification System • Concept: Group establishments by production processes • Established in 1997 • Developed in cooperation with our NAFTA partners, Canada and Mexico

3. Why Develop NAICS? SIC was: • Developed in the 1930s • Emphasized manufacturing, not growing service and high tech industries • Revisions made little change to the original structure • Last revised in 1987

4. How Does NAICS Differ from SIC? • Based on the “production function” concept • Emphasizes new and emerging industries, high-technology industries, and service industries • Provides for comparability with Canada and Mexico • Will be regularly maintained, current plans are for revisions every 5 years: 2002, 2007, etc.

5. What is the NAICS Structure? 20 sectors (21 counting Unclassified) 1.198 Industries (US) 175 more than under SIC system 6-digit numbering system

6. NAICS Sectors 11Agriculture, Forestry, Fishing and Hunting 21Mining 22Utilities 23Construction 31-33Manufacturing 42Wholesale Trade 44-45Retail Trade 48-49Transportation and Warehousing 51Information 52Finance and Insurance 53Real Estate & Rental & Leasing

7. NAICS Sectors 54Professional, Scientific & Technical Services 55Management of Companies and Enterprises 56Administrative & Support & WasteManagement & Remediation Services 61Educational Services 62Health Care & Social Assistance 71Arts, Entertainment, & Recreation 72Accommodation & Food Services 81Other Services (except public administration) 92Public Administration 99Unclassified

8. NAICS Alternate Aggregation Tree

9. NAICS/SIC Structure NAICS 2-digit Sector 3-digit Subsector 4-digit Industry Group 5-digit NAICS Industry 6-digit U.S. Industry SIC Division Letter 2-digit Major Group 3-digit Industry Group 4-digit Industry

10. Code 72 721 7211 72119 721191 Title Accommodation & Food Services Accommodation Traveler Accommodation Other Traveler Accommodation Bed-and-Breakfast Inns NAICS Structure As with SIC, more digits = more detail

11. NAICS - North American Industry Classification System Number of codes: 6 digit - 1,198 5 digit - 725 4 digit - 314 3 digit - 98 2 digit - 24 Super Sector 11 `

12. Questions so far?

13. Employment by SIC 2001

14. Employment by NAICS 2001

16. Agriculture, Forestry,Fishing & Hunting 11 Changes to sector: Moved in • Logging Moved out • Veterinarians • Agricultural Research • Horticultural and Landscape Activities

17. Utilities - 22 • Combination utilities no longer exist • Examples of new electric power industries • Fossil Fuel Electric Power • Nuclear Electric Power • Refuse systems Administrative & Support, Waste Management, & Remediation Services

18. Construction - 23 • Subsectors basically comparable to SIC major groups • In the Construction of Buildings subsector, industry is based on whether construction is new or remodeling • New Single Family Housing Construction • New Housing Operative Builders • Residential Remodelers

19. Manufacturing 31-33 • Reorganized and restructured = comparability with Canada and Mexico • 474 industries, • 173 revised industries, • 79 new industries • New Computer and Electronic Products Manufacturing Subsector

20. Manufacturing 31-33 • Incoming: • Retail Bakeries • Custom wood cabinets, furniture • Dental Laboratories • Tire Re-treading • Outgoing • Logging • Publishing

21. Redefinition of Wholesale/Retail • SIC based on class of customer • NAICS based on method of selling • Restaurants no longer included in retail

22. Wholesale Trade 42 • Three types of wholesalers • Merchant Wholesalers • Business-to-Business Electronic Markets • Agents and Brokers • Merchant wholesalers sell goods on their own account; the other two do not • Classification dependent on whether they take title to goods

23. Retail Trade 44 - 45 • New Industries • Discount Department Stores • Warehouse Clubs and Superstores • Gasoline Stations with Convenience Stores • Electronic Shopping • Going Elsewhere • Eating and Drinking Places • Retail Bakeries

24. Transportation & Warehousing 48 - 49 • Trucking no longer distinguished by whether or not storage is provided • General Freight Trucking, Long Distance, Truckload • General Freight Trucking, Long-Distance, Less Than Truckload • No distinction between land and air couriers • Waste collection and travel agencies Admin/Support & Waste Management & Remediation Services

25. Information Sector 51 • New Industries: - Cellular and other Wireless Telecommunications- Telecommunications Resellers- Internet Publishing and Broadcasting - Internet Service Providers- Web Search Portals • Rest created from:Manufacturing:PublishingTCPU: Broadcasting & CommunicationsServices:Motion Picture & Sound Recording Information Services & Data Processing Libraries

26. Restructuring of Finance Industries 52 • Recognizes rapid change and deregulation • New industries include: • Credit Card Issuing • Financial transactions Processing, Reserveand Clearinghouse Activities • Investment Banking and Securities Dealing

27. NAICS Real Estate and Rental and Leasing Professional, Scientific, & Technical Services Administrative and Support; Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment and Recreation Accommodation and Food Services Other Services (except Public Admin) Reorganization of Old “Services” Division 1987 SICServices

28. Professional, Scientific, & Technical Services 54 Grouped by expertise and training of service provider • 28 new industries • Offices of CPAs • Interior Design Services • Environmental Consulting • Marketing Research & Opinion Polling • Consultants

29. Administrative & Support & Waste Management & Remediation 56 29 new industries • Professional Employer Organizations • Convention & Visitors Bureaus • Repossession Services • Hazardous Waste Collection Industries that support businesses

30. Health Care and Social Assistance 62 27 new industries not found under the SIC • HMO Medical Centers • Diagnostic Imaging Centers • Blood and Organ Banks • Residential Mental Health and Substance Abuse Facilities • Continuing Care Retirement Facilities

31. Accommodation and Food Services 72 New eating place industries • Full-Service Restaurants • Limited-Service Restaurants • Cafeterias • Food Service Contractors • New lodging industries • Casino Hotels • Bed-and-Breakfast Inns

32. Public Administration 92 • Tribal government added • A governmental and a private unit will have the same NAICS code if they perform the same activity - Air Traffic Control is 488111

33. NAICS U.S. Manual • Published in 1998 • 1170 descriptions • Contains “Bridge” NAICS/SIC tables • Approximately 12,000 index items in an alphabetic sequence ALREADY OBSOLETE: NAICS 1997 Replacement published in 2002

34. NAICS 2002 NAICS 2002 is the first “five-year” revision to NAICS 1997 Revision was effective January 1, 2002 • Final Federal Register notice: January 16, 2001 Goals of the revision • Increase comparability among the three countries • Identify new and emerging industries • Restructure Wholesale Trade (US only)

35. NAICS 2002 Industries impacted by NAICS 2002: • Construction International comparability at fifth digit, and (BLS only) residential/nonresidential distinction at sixth digit • Wholesale Trade • Department Stores • Electronic shopping and auctions • Information • Next revision: 2007 • Complete restructuring of “distribution network” industries: Wholesale, Retail, Transportation and Warehousing

36. Implementation Timing Across Agencies • Phase in by statistical agencies • Completion of implementation by 2005

37. Internal Revenue Service Census Bureau Bureau of Economic Analysis Bureau of Labor Statistics Tax Year 1998 1999 - 2002 1999 - 2004 2002 - 2005 NAICS Implementation Schedule U.S. Statistical Agencies

38. Implementation at BLS(employment)

39. Implementation at BLS(non-employment)

40. Covered Employment & Wages(ES-202) • ES-202 is cornerstone employment program • Universe for virtually all BLS programs • Very detailed coverage: 8.2 million establishments, data aggregated by ownership/county/NAICS • Codes continually verified on a three-year cycle • 1998-2000: States polled companies to determineNAICS 1997 code (while still verifying SIC)

41. Covered Employment & Wages(ES-202) • 2001: Recoded for NAICS 2002 • Will continue to dual-code SIC and NAICS New units: Through FY 2002 (September 30, 2002) Existing units: Will maintain but not update SIC • Publication by BLSWhen: December 2001 MLR articles, full pub. in 2002 What: Data for 2001 and SIC/NAICS ratio tables • Historical reconstruction by BLS? Undecided

42. More information http://www.census.gov/epcd/www/naics.html

43. To find NAICS Codes http://www.census.gov/epcd/naics02/naicsod02.htm

44. Order a copy of the 2002 NAICS Manual: Call 800-553-6847 or go to: • http://www.ntis.gov Now Available -2002 Hardcover print edition!$45 PB2002-101430 CD-ROM with search and retrieval software $60 PB2002-502024

45. Questions?

46. BREAK

47. OccupationalEmploymentStatistics The difference betweenOccupations and Industry

48. Occupation Standard Occupational Classification (SOC) • System for classifying all occupations in the economy • Used by all Federal statistical agencies collecting occupational data • Classifies workers (employees) by the job tasks performed

49. Industry OES surveys provide occupations by industry “Snapshot” of the type of work performed within an industry

50. Top 10 Construction Occupations By Employment