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U. S. Bureau of Labor Statistics
Implementation of the NAICS 2007 Revision
inBureau of Labor Statistics
Programs
Amanda ChadwickMichael Searson
2
Purpose of NAICS Revision
• NAICS Revisions occur every 5 years, alternating between large and small in scope
• The 2007 NAICS Revision was small in scope and changes were limited to:• Clarifying certain industry descriptions• Fixing items missed in 2002 definitions• Collapsing certain industries
• NAICS Revisions:• Reflect current economic activities• Capture new and emerging technologies
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Federal Register Notices
March 11, 2005 – 70 FR 12390• Contains the decision for 12 industry
splits, 7 direct changes, 15 title changes and 1 number change
March 16, 2006 – 71 FR 28532• 1 additional industry split
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What is included?
13 Splits• 13 2002-based industries that split into more
than one 2007-based industry
7 Directs• 7 2002-based industries that can be directly
converted from one 2002-based code to one 2007-based code
The remaining industries are considered out of scope and are not affected by this revision
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SplitsOne-to-More than One
11 of the split industries only have 2 possible 2007 codes• It is possible for 9 of these 11 codes to remain
in their original 2002-based code
1 split industry has 5 possible 2007 codes• 525930 – Real Estate Investment Trusts (REITs)
1 split industry has 7 possible 2007 codes• 339111 – Laboratory Apparatus and Furniture
Manufacturing
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The 13 Split 2002-Based NAICS Codes
111219 Other Vegetable (except Potato) and Melon Farming111998 All Other Miscellaneous Crop Farming315211 Men’s and Boy’s Cut and Sew Apparel Contractors315212 Women’s, Girls’, and Infants’ Cut and Sew Apparel Contractors326199 All Other Plastics Products Manufacturing326291 Rubber Product Manufacturing Use326299 All Other Rubber Product Manufacturing
334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing339111 Laboratory Apparatus and Furniture Manufacturing518111 Internet Service Providers525930 Real Estate Investment Trusts (REITs)541612 Human Resources and Executive Search Consulting Services541710 Research and Development in the Physical, Engineering, and Life Sciences
Estimated National total – 67,000 establishments
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DirectsOne-to-One Relationships
• 516110 Internet Publishing and Broadcasting
• 517211 Paging
• 517212 Cellular and Other Wireless Telecommunications
• 517310 Telecommunication Resellers
• 517510 Cable and other Program Distribution
• 517910 Other Telecommunications
• 518112 Web Search Portals
7 industries in this revision that will be converted directly from the 2002-based code to their appropriate 2007-based code
Estimated National Total – 23,000 establishments
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Milestones/Timeline• January 2005 - Decision to combine the
NAICS 2007 Revision with the 2007 ARS • March 2005 - Federal Register with
NAICS Update for 2007 Notice released• March 2006 - Second Federal Register
with NAICS Update for 2007 Notice released
• August 2006 - NAICS 2007 Revision (N7R) State training
• October 2006 - 2007 ARS Begins• October 2006 - Dual Coding Begins
(Varies State to State)
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Milestones/TimelineContinued
• January 2007 – Meet with BLS Programs on data conversion
• May 2007 - 2006/4 Data to National Office - Early look at N7R changes via the future NAICS
fields on the EQUI file
• End of July 2007 - 2007/1 Data to National Office
• End of August 2007 - 3 files become available• November 2007 - Dual Coding Ends (Varies
State to State)• January 2008 – Final analysis of 2007 NAICS
revision
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First Program to convert is Quarterly Census of
Employment and Wages (QCEW)
• Used as a sampling frame for most BLS surveys
• Used as employment base or benchmark for most BLS surveys
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UI Tax Rate & Actuarial Analysis
UI-Covered Employment
Local Area Unemployment
Personal Income (BEA) - U.S., State, County
Gross Domestic Product (BEA)
Economic Forecasting
Current Employment Statistics
Occupational Employment Statistics
Job Creation/Destruction•Size Class Dynamics•Business Survival Rates
Geocoded Establishments
Occupational Employment Statistics
Occupational Safety and Health Statistics
Current Employment Statistics
National Compensation Survey
Industrial Price Program
Occupational Safety and Health Statistics
Programmatic Uses
Benchmarking(Employment Base)
General Economic Uses
Quarterly Census of Employment &
Wages Data (QCEW/ES-202)
Analytical Uses Sampling
Mass Layoff Statistics
State Revenue Projections
Job Openings & Labor Turnover Survey
Job Openings & Labor Turnover Survey
Local Economic Development Indicators
• Clusters Analysis• Shift Share• Industry Diversity Indexes• Location Quotients
Federal Funds Allocation$206 Billion
(HUD, USDA, HCFA/CHIP)
Minimum Wage Studies
Uses of Quarterly Census of Employment
and Wages Data (QCEW/ES-202)
Local Economic Impact Response Planning
Local Government Services Planning
Census Bureau• Improve CPS After 2000 Census• LEHD / LED• Industry Code Sharing (3.3 M)• County Business Patterns
Local Transportation Planning
State/local industry employment & wages
UI Benefit ratesUpdated as of 2/22/2006
Quarterly Press Releases, Annual Employment & Wages
REMY and Input-Output Tables
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QCEW Program
Fed/State Cooperative Statistical Program Program started with the passage of
Federal Unemployment Tax Act (FUTA)
BLS provides funding, deliverables, manuals, guidelines, and methodologies to State agencies
States collect & edit data (decentralized approach)
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QCEW Statistics
4th Quarter 2006 Stats:•8.9 Million establishments•135.9 Million employment•$1.516 Trillion Wages
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Data Coverage
• 98 Percent of all non-farm salary Workers in the U.S.
• 45 Percent of U.S. Agricultural Workers.
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Data Sources for the QCEW Program
•Primary Administrative Records of the State
Workforce Agencies - UI Tax departments.
•Secondary Supplemental forms designed by BLS to
meet additional program statistical needs. These are administered by the State LMI staff.
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QCEW Data Collection Forms
• Status Determination
• Quarterly Contribution Report
• Annual Refiling Survey (ARS)
• Multiple Worksite Report (MWR)
• Report of Federal Employment & Wages
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Status Determination Form (SDF)
• Used to determine an employer’s liability for Unemployment Insurance
• Basis for initial assignment of industrial, geographic and ownership codes
• Mandatory for employers to file• Initial source of UI Tax and physical
location addresses
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Purpose of ARS
Review and Update (if necessary)
•Mailing & Physical Location addresses
•County code•Single/multi-worksite status•Industry code (NAICS)
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Annual Refiling Survey (ARS)
About the Form:• BLS designed (standardized)• Mandatory in 23 States• 1/3 of Universe reviewed annually
(historically)• Sample based on 7th & 8th digit of EIN• Verification System• Minimum 75% response rate in units
or 80% employment for States
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Forms and Descriptions
No changes will be made to the current ARS forms • Multiple choices on the forms for splits,
regular descriptions for the rest Special industry descriptions created for
split industries
• Ask for percentages of sales/receipts on split industries Companies have the opportunity to describe
their economic activity if the provided industry descriptions are not accurate
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State Training
Provided training to all States• On-line computer based training in the
month of September for State industry coders All changes described in the Federal
Register Notices ARS form design System Changes to monitor changes
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ARS and Dual Coding
• Only 2007/1 will be ‘fully’ dual coded• Every active 2007/1 record must have both a
2002 and 2007 code
• Start – The beginning of the ARS• After creating the FY 2007 control file (Mid-
October)
• Stop – The end of 2007/1 processing• Final submittal of 2007/2
• Who – The establishments in the split industries
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Program Manager Meeting
QCEW provides data to other BLS statistical programs who use NAICS• Describe 3 files that will be created to capture the
revision 2002 based changes
• Does not include any 2007 revision
Revision changes• Uses only 2007/1 date to show the impact of the revision
Total changes• Uses 2006/4 and 2007/1 • Includes all changes: Non-revision adjustments and Revision
changes
• 3 files will capture all program needs
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Final Analysis
Use the data from the 3 files to determine the impact of the revision
On both a QCEW and BLS program base Additional BLS program meeting for future
revisions• 2012 will be the next NAICS revision
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Implementation of the NAICS 2007 Revision
in Bureau of Labor Statistics ProgramsFor additional information contact:
Michael A. [email protected]
Amanda [email protected]
U.S. Bureau of Labor StatisticsPostal Square Building2 Massachusetts Ave., NESuite 4840Washington, DC 20212-0001www.bls.gov