The Economic Census: Categorizing the Data - NAICS

by the Pennsylvania State Data Center

Volume 1, Number 3 October 1999

This is the third of a series of reports on the Economic Census. Every five years an Economic Census is conducted by the U.S. Bureau of the Census. While the Decennial Census tracks population and housing characteristics over time, the Economic Census keeps the pulse of the national and local economies

What is the North American Industrial Classification System?
The North American Industrial Classification System (NAICS) replaces the Standard Industrial Classification System. These are mechanisms to categorize businesses into by the principal activity in which they are engaged. The sectors included are:

NAICS Code	Economic Sector
11	Agriculture, Forestry, Fishing and Hunting
21	Mining
22	Utilities
23	Construction
31-33	Manufacturing
42	Wholesale Trade
44-45	Retail Trade
48-49	Transportation and Warehousing
51	Information
52	Finance and Insurance
53	Real Estate and Rental and Leasing
54	Professional, Scientific, and Technical Services
55	Management of Companies and Enterprises
56	Administrative and Support, Waste Management, and Remediation Services
61	Educational Services
62	Health Care and Social Assistance
71	Arts, Entertainment and Recreation
72	Accommodation and Food Services
81	Other Services Except Public Administration
92	Public Administration

NAICS is hierarchical in structure. From the two digit code, sectors are expanded up to six digits to provide more detail in each sector. For instance, a breakdown of the Information Sector would include:

Code Sector

51 Information

513 Broadcasting and Telecommunications

5133 Telecommunications

51332 Wireless Telecommunications Carriers (except satellite)

513321 Paging

513322 Cellular and Other Wireless Telecommunications

How does NAICS differ from previously used systems?
Methods of classification have evolved and changed over the years. NAICS was developed in cooperation with Canada and Mexico. It will produce more comparable data.

The new system identifies more industries that contribute to today's economy. Over 350 new industries and nine new service industry sectors were identified. Manufacturing reflects new high-tech industries.