Transcript U. S. Bureau of Labor Statistics Implementation of the NAICS 2007 Revision in Bureau of Labor Statistics Programs Amanda Chadwick Michael Searson.

U. S. Bureau of Labor Statistics
Implementation of the
NAICS 2007 Revision in
Bureau of Labor Statistics Programs
Amanda Chadwick
Michael Searson
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 2007based 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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Splits
One-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 Farming
111998 All Other Miscellaneous
Crop Farming
315211 Men’s and Boy’s Cut and Sew
Apparel Contractors
315212 Women’s, Girls’, and
Infants’ Cut and Sew Apparel
Contractors
326199 All Other Plastics Products
Manufacturing
326291 Rubber Product
Manufacturing Use
326299 All Other Rubber Product
Manufacturing
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334220 Radio and Television
Broadcasting and Wireless
Communications Equipment
Manufacturing
339111 Laboratory Apparatus and
Furniture Manufacturing
518111 Internet Service Providers
525930 Real Estate Investment
Trusts (REITs)
541612 Human Resources and
Executive Search Consulting
Services
541710 Research and Development
in the Physical, Engineering, and Life
Sciences
Estimated National total – 67,000 establishments
Directs
One-to-One Relationships
7 industries in this revision that will be converted
directly from the 2002-based code to their
appropriate 2007-based code
• 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
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/Timeline
Continued
• 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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Uses of Quarterly Census of Employment
and Wages Data (QCEW/ES-202)
Local Economic Development
Indicators
• Clusters Analysis
• Shift Share
• Industry Diversity Indexes
• Location Quotients
Personal Income (BEA) - U.S., State, County
Occupational
Employment Statistics
State Revenue Projections
Economic Forecasting
Minimum Wage Studies
Quarterly Press Releases,
Annual Employment & Wages
Current Employment
Statistics
Gross Domestic Product (BEA)
Occupational Safety and
Health Statistics
REMY and Input-Output Tables
Job Openings & Labor
Turnover Survey
General Economic Uses
Job Creation/Destruction
•Size Class Dynamics
•Business Survival Rates
Geocoded Establishments
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Census Bureau
Improve CPS After 2000 Census
LEHD / LED
Industry Code Sharing (3.3 M)
County Business Patterns
Benchmarking
(Employment Base)
Analytical Uses
Quarterly Census
of Employment &
Wages Data
(QCEW/ES-202)
Industrial Price Program
Programmatic Uses
Local Government Services
Planning
UI Tax Rate & Actuarial
Analysis
Local Economic Impact
Response Planning
UI-Covered Employment
Mass Layoff Statistics
State/local industry employment
& wages
Federal Funds Allocation
$206 Billion
(HUD, USDA, HCFA/CHIP)
Updated as of 2/22/2006
National Compensation Survey
Current Employment
Statistics
Occupational Employment Statistics
Local Area Unemployment
Local Transportation Planning
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Sampling
UI Benefit rates
Occupational Safety and Health
Statistics
Job Openings & Labor Turnover
Survey
QCEW Program
Fed/State Cooperative Statistical Program
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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)
QCEW Statistics
th
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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 Programs
For additional information contact:
Michael A. Searson
[email protected]
202.691.6469
Amanda Chadwick
[email protected]
202.691.5486
U.S. Bureau of Labor Statistics
Postal Square Building
2 Massachusetts Ave., NE
Suite 4840
Washington, DC 20212-0001
www.bls.gov
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