1

U. S. Bureau of Labor Statistics

NAICS 2007

A small revision

Draft February 2006

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

1 QUARTER• Dual coding for only ONE reference quarter

Splits—One to more than one

• 1 split industry has 7 possible 2007 industries

• 1 split industry has 5 possible 2007 industries

• Remaining split industries have only 2 possible 2007 industries

• In most splits, one of the possible 2007-based codes is the original 2002-based code

Split 2002-based NAICS111219 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

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

541612 Human Resources and Executive Search Consulting Services

541710 Research and Development in the Physical, Engineering, and Life Sciences

Directs—One-to-One Relationships

A few industries involved in the revision can be converteddirectly from their 2002-based NAICS code to theirappropriate 2007-based NAICS code. These codes are:

• 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

Workload impact on FY 2006, 2007, and 2008

• Except for REITs, all records that were known to be part of revision were excluded from the 2006 ARS

• Any record responding to revision in 2007 will be excluded from 2008 ARS

• Only 68,000 records involved in revision, nationwide

WIN States (2005/1 query)Alabama 568Alaska 97Florida 3,597Georgia 1,611Illinois 2,748Maine 282Massachusetts 2,273New Hampshire 397New York 4,102North Carolina 2,131South Carolina 681Vermont 160Washington 1,822

New CMI codes

05 2007 NAICS Revision, NVS

15 2007 NAICS Revision, NVM

25 2007 NAICS Revision, central review

New or Changed Response Codes

57 Code change from non-refiling source resulting in a

2007-based NAICS code

76 NAICS, county/township, ownership code change also

results in a 2007-based NAICS code

77 2007-based NAICS code assigned with no other NECC

41 Revision record responds and the 2007-based NAICS is

the same as the 2002-based NAICS

46 Same as before but must not have a different 2007-

based NAICS code

Dual Coding• From the beginning of refiling (creating the

ARS control file) through the end of 2007/1 processing

• About 8.5 million records nationwide—most will retain the same NAICS code

• Directs will be dual coded by the systems

• Splits will be refiled

• New Accounts—a little more effort needed

Dual Coding New Accounts• Begin dual coding new accounts as soon as the FY2007

control file is created• If the record is active prior to 2007/1, then a 2002-based

code is required for 2006 data. – If a direct, the system will assign the 2007 code. – If a split, obtain adequate information to assign both and include

as a 57 on the control file.

• If active in 2007/1, then put a 2007-based code on the record in the NAICS field and attempt to assign the 2002-based code if necessary. – The system will attempt to do reserve directs.– Continue this for any retroactive account that were active in first

quarter and still being added to the file.

• For records that become active after 2007/1, assign just the 2007-based NAICS code

Storing Multiple NAICS Codes

Where do all the NAICS codes go?• When working on 2006 data,

– 2002-based code goes in the NAICS field– 2007-based code goes in the 2007/1 field in

WIN– Corrected 2002-based code goes in the

NAICS02 field

• When working on 2007/1 data– 2007-based code in NAICS– Final 2002-based code in NAICS02

NAICS02 —aka formerly NSTA

What is NAICS02?

• The name the BLS has selected that will almost certainly confuse at least ½ the people

• Once known as NSTA

• Really just a currently unused 6-digit, quarterly field that already exists on the file

NAICS02• Final 2002-based code• Must be user or system assigned for all active

2007/1 records on the file• Will be a place to store the corrected 2002-

based NAICS code during refiling• Example: If Jones, Inc was originally coded as

A in the 2002-based code, gets refiled, should have been B under the 2002-based codes, which is actually a split and becomes C under the 2007-code, then B would be entered through the system in the NAICS02 field.

• Better (hopefully) examples follow.

Ex. 1—Refiled direct, no other change

Year/Q NAICS NAICS02 CMI RC

2006/2 518112 Blank 00 01

2006/3 518112 Blank 00 31

2006/4 518112 518112 00 31

2007/1 519130 518112 00 77

Ex. 2—Refile record, no revision change

Year/Q NAICS NAICS02 CMI RC

2006/2 451140 Blank 00 01

2006/3 451140 Blank 00 02

2006/4 451140 451140 00 41

2007/1 451140 451140 00 41

Ex. 3—Revision record, no other code change

Year/Q NAICS NAICS02 CMI RC

2006/2 111219 Blank 05 01

2006/3 111219 Blank 05 31

2006/4 111219 111219 05 77

2007/1 111211 111219 05 77

Ex. 4—Refile record, changed to a direct

Year/Q NAICS NAICS02 CMI RC

2006/2 541519 Blank 00 01

2006/3 541519 Blank 00 31

2006/4 541519 518112 00 76

2007/1 529130 518112 00 76

Forms and Descriptions

• No changes to the forms

• Two sets of revision descriptions—one for NVS and one for NVM– Phrasing awkward on NVM if not modified– Clearer for the respondent

• Multiple choices on the forms for splits, regular descriptions for the rest

• Also asking for percentages on splits

Auxiliary Code

• Will discontinue Auxiliary codes effective

with the September 2006 system releases

• Will be dropped from the TRS

• Will be defaulted to “known not to be a

support unit” on the forms until we replace

the forms in FY 2008

• Eliminating the edits as well

Nonresponse Handling• Every record will need both the 2002-based and

2007-based codes

• Remember, most split industries split into one of

two codes and most times one of the codes is

the existing code

• System generated nonresponse codes provided

in the past did not always yield the best results

Summary Management Report

• Added separate page for revision work

• Reflects new response codes

• Changed the file output format

• Changed response rates

• Added revision response rate

Response Rate—Everything Version

Total Response Rate:

30 + 31 + 41 + 42 + 46 + 50 + 57 + 63 + 64 + 65 + 76 + 77

----------------------------------------------------------------------------------------------------------------

00+01+02+03+ 04 + 11 + 30 + 31 + 41 + 42 + 46 + 50 + 57 + 63 + 64 + 65 + 76 + 77

Usable Response Rate:

41 + 42 + 46 + 50 + 57 + 76 + 77

-----------------------------------------------------------------------------------------------------------

00+01+02+03 + 04 + 11 + 30 + 31 + 41 + 42 + 46 + 50 + 57 + 63 + 64 + 65 + 76 + 77

Response Rate—Revision Rate

Total Revision Response Rate:

(RC=57+76) + (CMI=05,15,&25 & RC=30+31+41+42+63+64 + 65 + 77)

-------------------------------------------------------------------------------------------- (RC = 57 + 76) + (CMI = 05, 15, & 25 & RC ≠ 57 or 76)

Usable Revision Response Rate: (RC = 57 + 76) + (CMI = 05, 15, & 25 & RC = 41 + 42 + 77) --------------------------------------------------------------------------------- (RC = 57 + 76) + (CMI = 05, 15, & 25 & RC ≠ 57 or 76)

Edit Changes

• 2 dropped edits related to auxiliary codes

• 17 modified edits, typically because of new response

codes

– would only impact records that were refiled and had an invalid

response code

• 1 new edit

Dropped Edits

041 – Invalid Auxiliary Code

142 – Inconsistent Auxiliary/NAICS

Combination

Modified Edits010 – Invalid NAICS code012 – Invalid Ownership code013 – Invalid County code016 – NAICS and Ownership Inconsistent046 – Invalid ARS Response Code/Year065 – Inconsistent County/Township Combination074 – Invalid Old Ownership075 – Invalid Old County076 – Invalid Old County/Old Township Combination078 – Invalid Old NAICS code120 – Possible Non-economic Code Change123 – Expected Code Change Not Made146 – Old Codes are Inconsistent with 4th Quarter Codes156 – Predecessor/Successor County Code Conflict157 – Predecessor/Successor Ownership Code Conflict159 – Predecessor/Successor Township Code Conflict164 – Predecessor/Successor NAICS Code Conflict

New Edit (Short Term)017 – Invalid 2002 to 2007 NAICS Code

Relationship• Only run on 2007/1 data

• Checks NAICS02 code for a valid 2002-based

code

• Checks NAICS code for a valid 2007-based

code

• Checks crosswalk that NAICS02 and NAICS

codes are related

3 CCS Files

• Regular CCS

• Revision CCS

• Production CCS

Regular CCS• 2002-based code noneconomic code changes that

reflect corrections to the 2002-based NAICS code

• No 2007-based NAICS changes for 2007 CCS

• Noneconomic county code changes

• Noneconomic township code changes if in New

England or New Jersey

• Noneconomic ownership code changes

• No format changes

Revision CCS

• Strictly on 2007/1

• Compares both NAICS codes

– 2007-based NAICS code in NAICS field

– 2002-based NAICS code in NAICS02 field

• Can be used by users or those publishing

to determine the impact of the revision on

the data shifts

2007 Production CCS• Will reflect noneconomic and revision changes

occurring between 2006/4 and 2007/1

• Includes the regular CCS criteria

• Direct changes

• Split changes

• For 2007/1, will use the special production version of the CCS to generate the new Summary of Difference File for the Macro Edit Integration

Macro Processing

• Will switch from 2002-based codes in 2006/4 to

2007-based codes with 2007/1

• Will handle changes using the special 2007

production CCS and summary of difference files

• Will not retain 2002-based version and 2007-based

version

• Any push back work will do will be done outside of

EXPO and WIN

Other Issues• All this information is potentially subject to change

but most should remain as described.

• Still trying to work out what the other programs will

be getting and when, particularly CES, OES, MLS,

LAUS

• Will be discussed in detail at the technician’s

conference

• Training will be provided