The revision of ISIC, NACE and related classifications

1
The revision of ISIC, NACE and related
classifications

• Joint UNECE/Eurostat/OECD Meeting on National
  Accounts
• Geneva, 25-28 April 2006

2
System of activities and products classifications
PRODUCTS
ACTIVITIES
ISIC
SITC
HS
CPC1
BEC
Global Level
CN
NACE
PRODCOM
CPA
MIG
EU Level
National version of NACE
National version of PRODCOM
National version of CPA
National Level
3
Other relevant classifications

• NAICS North American Industry Classification
  System it classifies industries, not activities
• NAPCS North American Product Classification
  System
• ANZSIC Australian and New Zealand Standard
  Industrial classification
• EBOPS Extended Balance of Payments services
  classification

4
The  2007 revision

• In 1999, the UN Statistical Commission mandated
  the beginning of the revision of the whole
  system.
• It was planned to conclude the revision by 2006,
  in order to publish the revised classifications
  in 2007.
• The Statistical Commission adopted ISIC Rev. 4
  and CPC ver. 2 in March 2006.
• The HS has been revised as well and the HS 2007
  is available.
• The EU classification NACE Rev. 2 is finalised
  and CPA 2008 will be by June 2006.

5
Principles guiding the revision of ISIC and NACE

• Relevance adaptation to the technological and
  organisational developments of the economy
• Comparability convergence between different
  regional and/or international classifications of
  economic activities
• Continuity long time series necessary for
  economic analysis and forecast

6
Content of the revised classifications of
activities

• Structure
• Explanatory notes of classification items
• Correspondence tables

7
ISIC changes in the broad structure
ISIC Rev. 3 ISIC Rev. 4
Sections 17 21
Divisions 62 88
Groups 222 260
Classes 503 600
8
Main changes from ISIC Rev. 3

• Much more detail in Services
• New Information Sector
• Treatment of
• Repair and maintenance
• Veterinary services
• Agriculture

9
Main conceptual changes

• The new treatment of integrated activities
  (horizontally and vertically)
• The definition of principal activity based on the
  value added principle.

10
Changes in Services quantitative measures
ISIC Rev. 3.1 ISIC Rev. 4
Sections 8 13
Divisions 22 44
Classes 100 166
11
New separate sections for

• D Electricity, gas, steam and air conditioning
  supply
• E Water supply, sewerage, waste management and
  remediation activities
• H Transportation and storage
• J Information and communication
• L Real estate
• M Professional, scientific and technical
  activities
• N Administrative and support service activities
• R Arts, entertainment and recreation
• S Other service activities

12
Restructured sections

• Hotels and restaurants, now called Accommodation
  and Food service activities
• Financial intermediation, now called Financial
  and insurance activities
• Education
• Health and social work, now called Human health
  and social work activities

13
Support services

• Specific categories for support service close
  to the activities they are serving, e.g.
• group 016 Support activities to agriculture
• div. 09 Mining support service activities,
• class 1811 Service activities related to
  printing

14
The top-top and the intermediate structures

• A top-top aggregation of the 21 Sections into
  10/11 categories
• An intermediate aggregation of 38 categories

15
Implementation of the revised ISIC/NACE in
National Statistical Institutes main issues

• Update of Business registers 2008
• Specific statistical domains (derived statistics,
  infra-annual periodicity) from 2008 to 2011
• Breaks in time series
• Changes in sampling plans for surveys

16
Update of Business Registers

• Different methodologies are applied in MS to
  assign ISIC/NACE codes to units in BR
• Production data
• Administrative sources
• Automatic coding

17
Changes in EU specific statistical domains

• Short Term Statistics start in 2009
• Structural Business Statistics start in 2009,
  reference year 2008
• Labour Cost Index start in 2009
• National Accounts (Annual and Quarterly) start
  in 2011

18
Breaks in time series

• Possible solutions
• Double reporting / double coding
• Provision of guidelines on back-casting
  methodologies

19
Information on ISIC and CPC

• UN SD website
• http//unstats.un.org/unsd/cr/registry

20
Information on EU activities, plans and
methodological handbooks

• Eurostat website of  Operation 2007 
• http//forum.europa.eu.int/irc/dsis/
• nacecpacon/info/data/en/index.htm