The revision of ISIC NACE and related classifications

The revision of ISIC, NACE and related classifications Joint UNECE/Eurostat/OECD Meeting on National Accounts Geneva, 25 -28 April 2006

System of activities and products classifications PRODUCTS ACTIVITIES Global Level ISIC CPC 1 HS EU Level NACE CPA PRODCOM National version of NACE National version of CPA National version of PRODCOM Level CN SITC BEC MIG

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

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.

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

Content of the revised classifications of activities • Structure • Explanatory notes of classification items • Correspondence tables

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

Main changes from ISIC Rev. 3 ¢ Much more detail in Services ¢ New Information Sector ¢ Treatment of: Repair and maintenance l Veterinary services l Agriculture l

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

Changes in Services: quantitative measures ISIC Rev. 3. 1 ISIC Rev. 4 Sections 8 13 Divisions 22 44 Classes 100 166

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

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”

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”

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

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

Update of Business Registers Different methodologies are applied in MS to assign ISIC/NACE codes to units in BR: Production data l Administrative sources l Automatic coding l

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

Breaks in time series Possible solutions ¢ Double reporting / double coding ¢ Provision of guidelines on back-casting methodologies

Information on ISIC and CPC UN SD website: http: //unstats. un. org/unsd/cr/registry

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