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Options for national implementation of ISIC United Nations Statistics Division Purpose of ISIC • Since its creation in 1948, ISIC had two goals: • Provide a tool for international comparison • Provide guidance to countries for a national activity classification structure • Increasing need for detailed internationally comparable data has led to more detailed versions of ISIC 2 National classifications • How can national classifications be structured? 1. Using ISIC as a starting point 2. Based on historical national versions 3 Using ISIC as a basis Link link between ISIC and NACEtruncation” Combining ofthrough ISIC categories ISIC “numerical • Countries that use ISIC as a basis for their national ISIC Rev.4 National Classification classification, can do this to varying degrees: ISIC Rev.4 NACE Rev.2 ISIC Rev.4 National Classification 2311 Manufacture of flat glass Manufactureof offlat flatglass glass Manufacture Manufacture and processing of other glass 2310 Manufacture of glass and“as-is” glass 1. Adopt ISIC Shapingand andprocessing processingofofflat flatglass glass Shaping products 2310 Manufacture of of glass glass and and Manufacture ofhollow hollowglass glass to reflect 2. glass Use complete ISIC and add subdivisions Manufacture of 2391 Manufacture ofthe refractory products products Manufactureof ofofglass glass fibres products and clay Manufacture fibres products nationally important industries Manufacture refractory (but maintain the ISIC Manufacture and processing of otherglass, glass, Manufacture and processing of other building materials coding structure) – can be “numerically truncated” back to including technicalglassware glassware including technical 2392 Manufacture of clay building of refractory refractory 2320 Manufacture Manufactureof ofrefractory refractoryproducts products 2391 Manufacture of 23910 ISIC [Example] materials 2311 23101 2319 2312 23102 2313 23103 2314 23104 2390 2319 23109 products 2331 Manufacture Manufacture ceramictiles tiles andflags flags ceramic and 3. As above, but with 23921 changes of theofofcoding structure of clay clayis building 2392 Manufacture of building International comparability reduced 2332 Manufacture Manufactureof ofbricks, bricks,tiles tilesand andconstruction construction 23922 (example: NACE) – requires correspondence table materials products, in inbaked bakedclay clay products, Correspondence table is required. [Example] 4. Elevating lower level ISIC categories to higher national comparability is maintained. maintained. International comparability is However, correspondence table is required. No additional tools are required. levels, (e.g. combine ISIC categories at 2- or 3-digit level) [Example] 4 Using ISIC as a basis • The first three methods maintain full comparability with ISIC at all levels (although option 3 may not be very intuitive) • Option 4 limits internationally comparability to a higher aggregation level only • Is use of the same coding as ISIC 4 a requirement? - No, but it makes comparisons easier. 5 Using historical national classifications as a basis • Using non-ISIC based classifications always creates difficulties for international comparison • Correspondence tables are necessary • May limit data conversion due to splits • Efforts are encouraged to line the historical versions up to ISIC • At detailed level (without considering aggregation structures) or • By lining up individual sections 6 What detail should be considered? • Minimum level of data reporting has been agreed at 2-digit level • However, most statistics and users will require more • Due to size and confidentiality reasons, not all detail may be useful for all countries • BUT: classification for collection may be more detailed than for distribution of data 7 What level should be considered? • Using more detail for collection allows for future adjustments if individual industries are growing • Level of detail for publishing depends on type of statistics anyway • No fixed guidelines exist for the proper choice of detail 8 Options to consider or avoid • ISIC structure and definition are based on few criteria (input, process, output, use of outputs) • Should other criteria be added for national purposes, such as private vs. public entity, manufacturing by hand (crafts) vs. manufacturing by machines? • What are the applications? 9 Options to consider or avoid • When introducing additional detail, check if the specialization for this activity really warrants a separate class • When following the ISIC structure and coding system, don’t renumber codes if you want to skip a code number (e.g. due to absence of that activity) • The activity may still exist illegally (or appear in the future) and should be accounted for in the SNA • Renumbering makes the ISIC link less intuitive 10 Rules for good housekeeping • If a category at level n is not further subdivided, the code at level n+1 should be the same code with a “0” appended • Use digit “9” for residual categories 11 The situation in the EU and the ESS Regulation (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. 12 National subdivisions of NACE in the EU Member States and the ESS • 23 UE Member States (+ Norway) have national subdivisions of NACE Rev. 2. • Exceptions are: • • • • • Bulgaria Hungary Romania Ireland Malta 13 National subdivisions of NACE in the EU Member States and the ESS (cont.) Creating a national subdivision by adding an additional coding level (1): • NACE Rev. 2 class 41.20 • National class: • 41.20.1 • 41.20.2 • 41.20.9 14 National subdivisions of NACE in the EU Member States and the ESS (cont.) Creating a national subdivision by adding an additional coding level (2): • NACE Rev. 2 class 41.20 • National class: • 41.201 • 41.202 • 41.209 15 National subdivisions of NACE in the EU Member States and the ESS (cont.) Creating a national subdivision by adding an additional coding level (3): • NACE Rev. 2 class 41.20 • National class: • 41.20.10 • 41.20.20 • 41.20.90 16 National subdivisions of NACE in the EU Member States and the ESS (cont.) Creating a national subdivision by adding an additional coding level (4): • NACE Rev. 2 class 41.20 • National class: • 41.20.A • 41.20.B • 41.20.C 17 National subdivisions of NACE in the EU Member States and the ESS (cont.) Creating a national subdivision by adding an additional coding level (5): • NACE Rev. 2 class 41.20 • National class: • 41.20A • 41.20B • 41.20C 18 National subdivisions of NACE in the EU Member States and the ESS (cont.) Creating a national subdivisions by adding additional codes to the EU NACE coding, within the four-digit structure (only Spain): • NACE Rev. 2 class 41.20 • National class: • 41.21 • 41.22 • 41.29 19