United Nations Statistics Division

Options for national implementation Options for national implementation of ISICof ISIC

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Purpose of ISICPurpose of ISIC

• Since its creation in 1948, ISIC had two Since its creation in 1948, ISIC had two goals:goals:• Provide a tool for international comparisonProvide a tool for international comparison• Provide guidance to countries for a national Provide guidance to countries for a national

activity classification structureactivity classification structure

• Increasing need for detailed internationally Increasing need for detailed internationally comparable data has led to more detailed comparable data has led to more detailed versions of ISICversions of ISIC

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National classificationsNational classifications

• How can national classifications be How can national classifications be structured?structured?

1.1. Using ISIC as a starting point Using ISIC as a starting point

2.2. Based on historical national versionsBased on historical national versions

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Using ISIC as a basisUsing ISIC as a basis

• Countries that use ISIC as a basis for their national Countries that use ISIC as a basis for their national classification, can do this to varying degrees:classification, can do this to varying degrees:

1.1. Adopt ISIC “as-is”Adopt ISIC “as-is”

2.2. Use the complete ISIC and add subdivisions to reflect Use the complete ISIC and add subdivisions to reflect nationally important industries (but maintain the ISIC coding nationally important industries (but maintain the ISIC coding structure) – can be “numerically truncated” back to ISIC structure) – can be “numerically truncated” back to ISIC [Example][Example]

3.3. As above, but with changes of the coding structure (example: As above, but with changes of the coding structure (example: NACE) – requires correspondence table [Example]NACE) – requires correspondence table [Example]

4.4. Elevating lower level ISIC categories to higher national Elevating lower level ISIC categories to higher national levels, (e.g. combine ISIC categories at 2- or 3-digit level) levels, (e.g. combine ISIC categories at 2- or 3-digit level) [Example][Example]

ISIC link through “numerical truncation”

ISIC Rev.4 National Classification 23101 Manufacture of flat glass 23102 Shaping and processing of flat glass 23103 Manufacture of hollow glass 23104 Manufacture of glass fibres

2310

Manufacture of glass and glass products

23109 Manufacture and processing of other glass, including technical glassware

2391 Manufacture of refractory products

23910 Manufacture of refractory products

23921 Manufacture of ceramic tiles and flags 2392

Manufacture of clay building materials

23922 Manufacture of bricks, tiles and construction products, in baked clay

International comparability is maintained. No additional tools are required.

Link between ISIC and NACE

ISIC Rev.4 NACE Rev.2 2311 Manufacture of flat glass 2312 Shaping and processing of flat glass 2313 Manufacture of hollow glass 2314 Manufacture of glass fibres

2310

Manufacture of glass and glass products

2319 Manufacture and processing of other glass, including technical glassware

2391 Manufacture of refractory products

2320 Manufacture of refractory products

2331 Manufacture of ceramic tiles and flags 2392

Manufacture of clay building materials

2332 Manufacture of bricks, tiles and construction products, in baked clay

International comparability is maintained. However, correspondence table is required.

Combining of ISIC categories

ISIC Rev.4 National Classification 2311 Manufacture of flat glass

2310 Manufacture of glass and glass products

2319 Manufacture and processing of other glass

2391 Manufacture of refractory products

2392

Manufacture of clay building materials

2390

Manufacture of refractory products and clay building materials

International comparability is reduced Correspondence table is required.

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Using ISIC as a basisUsing ISIC as a basis

• The first three methods maintain full The first three methods maintain full comparability with ISIC at all levels (although comparability with ISIC at all levels (although option 3 may not be very intuitive)option 3 may not be very intuitive)

• Option 4 limits internationally comparability to Option 4 limits internationally comparability to a higher aggregation level only a higher aggregation level only

• Is use of the same coding as ISIC 4 a Is use of the same coding as ISIC 4 a requirement? - No, but it makes comparisons requirement? - No, but it makes comparisons easier.easier.

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Using historical national Using historical national classifications as a basisclassifications as a basis

• Using non-ISIC based classifications Using non-ISIC based classifications always creates difficulties for international always creates difficulties for international comparisoncomparison• Correspondence tables are necessaryCorrespondence tables are necessary

• May limit data conversion due to splitsMay limit data conversion due to splits

• Efforts are encouraged to line the historical Efforts are encouraged to line the historical versions up to ISICversions up to ISIC• At detailed level (without considering At detailed level (without considering

aggregation structures) oraggregation structures) or• By lining up individual sectionsBy lining up individual sections

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What detail should be considered?What detail should be considered?

• Minimum level of data reporting has been Minimum level of data reporting has been agreed at 2-digit levelagreed at 2-digit level

• However, most statistics and users will However, most statistics and users will require morerequire more

• Due to size and confidentiality reasons, not Due to size and confidentiality reasons, not all detail may be useful for all countriesall detail may be useful for all countries

• BUT: classification for collection may be BUT: classification for collection may be more detailed than for distribution of datamore detailed than for distribution of data

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What level should be considered?What level should be considered?

• Using more detail for collection allows for Using more detail for collection allows for future adjustments if individual industries future adjustments if individual industries are growingare growing

• Level of detail for publishing depends on Level of detail for publishing depends on type of statistics anywaytype of statistics anyway

• No fixed guidelines exist for the proper No fixed guidelines exist for the proper choice of detailchoice of detail

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Options to consider or avoidOptions to consider or avoid

• ISIC structure and definition are based on ISIC structure and definition are based on few criteria (input, process, output, use of few criteria (input, process, output, use of outputs)outputs)

• Should other criteria be added for national Should other criteria be added for national purposes, such as private vs. public entity, purposes, such as private vs. public entity, manufacturing by hand (crafts) vs. manufacturing by hand (crafts) vs. manufacturing by machines?manufacturing by machines?• What are the applications?What are the applications?

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Options to consider or avoidOptions to consider or avoid

• When introducing additional detail, check if the When introducing additional detail, check if the specialization for this activity really warrants a specialization for this activity really warrants a separate classseparate class

• When following the ISIC structure and coding When following the ISIC structure and coding system, don’t renumber codes if you want to skip system, don’t renumber codes if you want to skip a code number (e.g. due to absence of that a code number (e.g. due to absence of that activity)activity)• The activity may still exist illegally (or appear in the The activity may still exist illegally (or appear in the

future) and should be accounted for in the SNAfuture) and should be accounted for in the SNA

• Renumbering makes the ISIC link less intuitiveRenumbering makes the ISIC link less intuitive

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Rules for good housekeepingRules for good housekeeping

• If a category at level n is not further If a category at level n is not further subdivided, the code at level n+1 should be subdivided, the code at level n+1 should be the same code with a “0” appendedthe same code with a “0” appended

• Use digit “9” for residual categoriesUse digit “9” for residual categories

The situation in the EU and the ESSThe situation in the EU and the ESSRegulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2

Article 4 - National classifications of economic activities

1. Member States' statistics presented according to economic activities shall be produced using NACE Rev. 2 or a national classification derived therefrom.

2. The national classification may introduce additional headings and levels and a different coding may be used. Each of the levels, except for the highest, shall consist of either the same headings as the corresponding NACE Rev. 2 level or headings constituting an exact breakdown thereof.

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National subdivisions of NACE in the National subdivisions of NACE in the EU Member States and the ESSEU Member States and the ESS

• 23 UE Member States (+ Norway) have 23 UE Member States (+ Norway) have national subdivisions of NACE Rev. 2.national subdivisions of NACE Rev. 2.

• Exceptions are:Exceptions are:• BulgariaBulgaria• HungaryHungary• RomaniaRomania• IrelandIreland• MaltaMalta

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National subdivisions of NACE in the National subdivisions of NACE in the EU Member States and the ESS (cont.)EU Member States and the ESS (cont.)

Creating a national subdivision by adding an Creating a national subdivision by adding an additional coding level (1): additional coding level (1):

•NACE Rev. 2 class 41.20NACE Rev. 2 class 41.20• National class:National class:

• 41.20.141.20.1

• 41.20.241.20.2

• 41.20.9 41.20.9

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National subdivisions of NACE in the National subdivisions of NACE in the EU Member States and the ESS (cont.)EU Member States and the ESS (cont.)

Creating a national subdivision by adding an Creating a national subdivision by adding an additional coding level (2): additional coding level (2):

•NACE Rev. 2 class 41.20NACE Rev. 2 class 41.20• National class:National class:

• 41.20141.201

• 41.20241.202

• 41.209 41.209

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National subdivisions of NACE in the National subdivisions of NACE in the EU Member States and the ESS (cont.)EU Member States and the ESS (cont.)

Creating a national subdivision by adding an Creating a national subdivision by adding an additional coding level (3): additional coding level (3):

•NACE Rev. 2 class 41.20NACE Rev. 2 class 41.20• National class:National class:

• 41.20.1041.20.10

• 41.20.2041.20.20

• 41.20.90 41.20.90

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National subdivisions of NACE in the National subdivisions of NACE in the EU Member States and the ESS (cont.)EU Member States and the ESS (cont.)

Creating a national subdivision by adding an Creating a national subdivision by adding an additional coding level (4): additional coding level (4):

•NACE Rev. 2 class 41.20NACE Rev. 2 class 41.20• National class:National class:

• 41.20.A41.20.A

• 41.20.B41.20.B

• 41.20.C 41.20.C

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National subdivisions of NACE in the National subdivisions of NACE in the EU Member States and the ESS (cont.)EU Member States and the ESS (cont.)

Creating a national subdivision by adding an Creating a national subdivision by adding an additional coding level (5): additional coding level (5):

•NACE Rev. 2 class 41.20NACE Rev. 2 class 41.20• National class:National class:

• 41.20A41.20A

• 41.20B41.20B

• 41.20C 41.20C

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National subdivisions of NACE in the National subdivisions of NACE in the

EU Member States and the ESS (cont.)EU Member States and the ESS (cont.) Creating a national subdivisions by Creating a national subdivisions by adding adding additional codes to the EU NACE coding, additional codes to the EU NACE coding, within the four-digit structure (only Spain):within the four-digit structure (only Spain):

•NACE Rev. 2 class 41.20NACE Rev. 2 class 41.20• National class:National class:

• 41.2141.21

• 41.2241.22

• 41.29 41.29

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