Developments in International Activity

and Product Classifications :

Towards ISIC revision 4

and CPC version 2

Bill Cave
OECD Statistics Directorate

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Workshop 6-10 December 2004
 Overview
 Introduction to ISIC
 Making sense of the proposed ISIC Revision 4
 Where are the regional classifications going?
 What about products?
 Discussion points

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Workshop 6-10 December 2004
What is ISIC?
 International Standard Industrial Classification of All Economic
Activities (ISIC)
 One of UN family of international reference statistical
classifications
 Original ISIC 1948
 Revision 1 1958, Revision 2 1968, Revision 3 1989
 Minor Revision 3.1 2002, Revision 4 planned for 2007
 To be a standard classification of productive economic activities
 To classify economic entities (units) according to the activity
they carry out

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Workshop 6-10 December 2004
 Why a new revision of ISIC?
 ISIC revision 3 was published in 1989
 minor updating done in 2002 (rev 3.1) almost no 4 digit
boundaries were changed
 relevance – how to classify new internet, ICT, and content
activities; biotech; etc.
 not sufficiently used so lack of international comparability
 But for analysts continuity is desirable – value long time
series

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Regional classifications and ISIC rev 3

 NACE derived from ISIC - corresponds at most

detailed level
 ANZSIC, NAICS, CSIC, JSIC are related
classifications
 Great difficulty to compare Europe, with N America,
China and Japan at 2 digit level especially for
services

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Workshop 6-10 December 2004
 Structure of ISIC rev 3
ISIC Rev 3
Tabulation Categories Divisions Groups Class
A Agriculture, Hunting, Forestry 01-02
B Fishing 05
C Mining and quarrying 10-14
D Manufacturing 15-37
NA categories:
DA Manufacture of food products, beverages and tobacco 15-16
DB Manufacture of textiles and textile products 17-18
DC Manufacture of leather and leather products 19
DD Manufacture of wood and wood products 20
DE Manufacture of pulp, paper, publishing and printing 21-22
DF Manufacture of coke, petroleum products & nuclear fuel23
DG Manufacture of chemicals, and man-made fibres 24
DH Manufacture of rubber and plastic products 25
DI Manufacture of other non-metallic mineral products 26
DJ Manufacture of basic metals and metal products '27-28
DK Manufacture of machinery and equipment n.e.c. 29
DL Manufacture of electrical and optical equipment 30-33
DM Manufacture of transport equipment 34-35
DN Manufacturing n.e.c. 36-37
E Electricity, Gas and Water Supply 40-41
F Construction 45
Services:
G Wholesale and Retail Trade 50-52
H Hotels and Restaurants 55
I Transport, Storage and Communication 60-64
J Financial Intermediation 65-67
K Real Estate, Renting and Business Activities 70-74
L Public Administration and Defence 75
M Education 80
N Health and Social Work 85
O Other Community, Social and Personal Services 90-93
P Private Households with Employed Persons 95
Q Extra-territorial Organisations 99
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Workshop 6-10 December 2004
 ISIC rev 3 Structure
ISIC Rev 3
Tabulation Categories Divisions Groups Class
A Agriculture, Hunting, Forestry 01-02
B Fishing 05
C Mining and quarrying 10-14
D Manufacturing 15-37
E Electricity, Gas and Water Supply 40-41
F Construction 45
Services:
G Wholesale and Retail Trade 50-52
H Hotels and Restaurants 55
I Transport, Storage and Communication 60-64
J Financial Intermediation 65-67
K Real Estate, Renting and Business Activities 70-74
L Public Administration and Defence 75
M Education 80
N Health and Social Work 85
O Other Community, Social and Personal Services 90-93
P Private Households with Employed Persons 95
Q Extra-territorial Organisations 99
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Workshop 6-10 December 2004
Making sense of the proposed
ISIC rev 4 draft structure

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Workshop 6-10 December 2004
 Design principles & priorities for ISIC rev 4
 Improve international comparability
– convergence of regional classifications
– E.g. NAICS/NACE/JSIC/ANZSIC/CSIC
– engage more countries and regions in ISIC design
– target for international comparability at least at 2 digit level
 Relevance
– Information sector, internet Telecoms
– OECD ICT definition
– environmental services
– new technologies
– growing business service sector
– health services
– Agriculture
 Continuity
 Level of detail for an international classification?

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Workshop 6-10 December 2004
 ISIC Rev 4 Draft
ISIC Rev 4 Draft May 2004
Tabulation Categories Divisions Groups Class
A Agriculture, Forestry, Fishing 01-03
B Mining and quarrying 05-09
C Manufacturing 10-33
D Electricity, Gas, Steam and Air Conditioning Supply
34
E Water supply, sewerage, waste management and '35-38
remediation
F Construction 39-41
G Wholesale and Retail Trade 42-44
H Transport and Storage 45-50
J Accommodation and food service activities 51-52
K Information and communication 53-57
L Financial and insurance activities 59-61
M Real estate, rental and leasing activities 62-63
N Professional, scientific and technical activities 64-70
O Administrative and support service activities 71-75
P Education 76
Q Human Health and Social Work 77-79
R Arts, entertainment and recreation 80-83
S Óther service activities 84-86
T Public Administration and Defence 87
U Activities of households as employers plus undifferentiated
88-89 household activities
V Extra-territorial Organisations 90
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21 categories Workshop 6-10 December 2004 87 divisions
 What’s new?
 New groupings
– Information and communication sector
– water supply, sewerage, waste management and remediation

 More tabulation categories for services

– professional technical, and business services
– administrative and support services
– real estate, rental and leasing services
– art, entertainment and recreation

 More divisions ( to increase international comparability)

– for new groupings and growing services
– in manufacturing and construction
– all the above
– human health services

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Workshop 6-10 December 2004
 Information and communication sector

 53 Publishing
– 531 publishing books, periodicals (ex manufacturing)
– 532 software publishing (ex IT services)
 54 Motion picture & sound recording
– 541 Motion picture activities
– 542 Sound recording activities (inc music pub ex manuf)
 55 Broadcasting
– 551 Radio and TV
– 552 Cable and other subscription programming
 56 Telecommunications
 57 IT services, ISP, web search and other information service activities

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Workshop 6-10 December 2004
Water supply; sewerage, waste management
and remediation activities
 35 Water collection and supply

 36 Sewerage

 37 Waste collection, treatment and disposal activities, materials recovery

– 371 waste collection
– 372 waste treatment and disposal
– 373 materials recovery

 38 Remediation activities and other waste management services

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Workshop 6-10 December 2004
 Agriculture, forestry and fishing

 01 Crop and livestock production, hunting and related activities

– 011 production of cereals and other field crops
– 012 production of permanent crops
– 013 market gardening, horticulture, production of other crops
– 014 production of animals
– 015 mixed farming
– 016 support services to agriculture and post-harvest crop activities
– 017 hunting, trapping and related services
 02 Forestry and logging
 03 Fishing and aquaculture
– 031 fishing
– 032 aquaculture
– 033 support services to fishing and aquaculture

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 Manufacturing

 10 food products
 11 beverages
 12 tobacco products
 13 textiles
 14 wearing apparel
 15 leather and related products
 16 wood and wood/cork products (not furniture)
 17 paper and paper products
 18 printing and reproduction of recorded media
 19 coke and refined petroleum products
 20 chemicals and chemical products
 21 pharmaceuticals

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 Manufacturing continued

 22 rubber and plastic products

 23 other non-metallic mineral products
 24 basic metals
 25 fabricated metal products except machinery
 26 computers and electronic products
 27 electrical equipment
 28 machinery and equipment
 29 motor vehicles
 30 other transport equipment
 31 furniture
 32 manufacturing n.e.c.
 33 repair, maintenance and installation of machinery and equipment

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Workshop 6-10 December 2004
 Real estate, rental and leasing activities

 62 real estate
– 621 real estate activities with own or leased property
– 622 real estate activities on a fee or contract basis
 63 rental and leasing
– 631 renting transport equipment
– 632 renting of other machinery and equipment
– 633 renting of recreational/sports/personal/household equipment
– 634 leasing of non-financial intangible assets

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Workshop 6-10 December 2004
 Professional, scientific and technical
activities
 64 legal and accounting activities
– 641 legal; 642 accounting
 65 holding companies, management and management consultancy
activities
– 651 holding companies; 652 head offices; 653 management and management
consultancy
 66 architecture and engineering activities
 67 scientific research and development
– N.B. 6711 research and experimental development in biotech
 68 advertising and market research
 69 photographic and other prof, scient, and technical activities
 70 veterinary activities

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Workshop 6-10 December 2004
 Administrative and support activities

 71 Employment activities
– 711 employment placement agencies; 712 temporary help activities
– 713 human resource provision and management
 72 Travel agencies; tour operators; and other reservation services
 73 Investigation and security activities
 74 services to buildings and landscape activities
– 741 facilities support; 742 cleaning; landscape care and maintenance
 75 office administrative, business support and other support activities
– 751 office admin and business support;
– 752 call centres
– 753 other business support n.e.c.

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 Human health and social work

 77 human health activities

– 771 hospital activities
– 772 medical and dental practices
– 779 other human health activities

 78 residential care services

– 781 nursing care facilities
– 782 residential mental health and related services
– 783 community care facilities for the elderly
– 789 social work activities with accommodation

 79 social work activities without accommodation

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 Arts entertainment and recreation

 80 Dramatic arts, music and other arts and entertainment

 81 museums, preservation of historical sites, botanic and zoological

gardens, nature reserves

 82 gambling and betting activities

 83 sports activities, amusement and recreation activities

– 831 sports activities - inc operating sports facilities and clubs
– 832 other amusement and recreation activities

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Workshop 6-10 December 2004
 Section S Other service activities

 84 activities of membership organisations

– 841 business, employer, professional organisations
– 842 trade unions
– 843 other membership organisations
 85 repairs of computers and personal and household goods
– 851 repair of computers and communication equipment
– 852 repair of personal and household goods
 86 other service activities
– 8601 washing and dry-cleaning of textiles and furs
– 8602 hairdressing and other beauty treatment
– 8603 funeral and related activities
– 8609 other service activities n.e.c.

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Workshop 6-10 December 2004
The ISIC revision mechanism and process

 The revision is ultimately controlled by UN Statistics Commission

= (Heads of National Statistics Offices)
 Directed by UN Expert Group on Economic and Social
Classifications = (experts from about 30 countries and
international organisations)
 Work done by Technical Sub-group of Expert Group = (8-10
countries, plus Eurostat, UNSD, OECD,IMF, ILO, FAO, some
others)
 2004 Consultation – see over

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Workshop 6-10 December 2004
 ISIC Revision Process
approximate timetable
 Worldwide consultation closed 15 November 2004
 Need top-top structure for national accounts reporting
 TSG meets February 2005
 Revised draft goes to UN Expert Group June 2005
 Final draft goes to UNSC December 2005 for
approval
 Prepare full publication
 Publish early 2007

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Workshop 6-10 December 2004
 ISIC Rev 3 v Rev 4?
ISIC Rev 3 ISIC Rev 4 Draft May 2004
Tabulation Categories Divisions Tabulation Categories Divisions Continuity
A Agriculture, Hunting, Forestry 01-02 A Agriculture, Forestry, Fishing 01-03 *
B Fishing 05 B Mining and quarrying 05-09 *
C Mining and quarrying 10-14
D Manufacturing 15-37 C Manufacturing 10-33
E Electricity, Gas and Water Supply 40-41 D Electricity, Gas, Steam and Air Conditioning
34 Supply
E Water supply, sewerage, waste management
'35-38 and remediation
F Construction 45 F Construction 39-41 *
G Wholesale and Retail Trade 50-52 G Wholesale and Retail Trade 42-44 *
I Transport, Storage and Communication
60-64 H Transport and Storage 45-50
H Hotels and Restaurants 55 J Accommodation and food service activities
51-52
K Information and communication 53-57 *
J Financial Intermediation 65-67 L Financial and insurance activities 59-61 *
M Real estate, rental and leasing activities
62-63
K Real Estate, Renting and Business 70-74
Activities N Professional, scientific and technical64-70
activities
O Administrative and support service activities
71-75
M Education 80 P Education 76 *
N Health and Social Work 85 Q Human Health and Social Work 77-79
O Other Community, Social and Personal
90-93
ServicesR Arts, entertainment and recreation 80-83
S Óther service activities 84-86
L Public Administration and Defence 75 T Public Administration and Defence 87 *
P Private Households with Employed Persons
95 U Activities of households as employers88-89
plus undifferentiated
* household a
Q Extra-territorial Organisations 99 V Extra-territorial Organisations 90 *

17 categories 60 divisions21 categories 87 divisions

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Where are the regional
classifications going?

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Workshop 6-10 December 2004
 Regional Classifications
 NAICS minor revision 2007
 NACE plans to remain derived from ISIC
 ANZSIC 06 - a version of NAICS
 China SIC and Japan SIC introduced IC sectors in 2002
converged with ISIC and NAICS but retained significant
national features
– expect convergence to continue after next revision
 Others? India, Mercosur, Russia

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Workshop 6-10 December 2004
Section CSIC 2002 Divisions Section ISIC rev 4 Divisions
A Agriculture, Forestry, Fishing 5 A Agriculture, Forestry, Fishing 3
B Mining 6 B Mining and quarrying 5
C Manufacture 30 C Manufacture 24
D Electricity, gas and water 3 D Electricity, gas 1
Water, sewage, waste
E Construction 4 E management, recycling 4
F Transport, storage and post 9 F Construction 3
Information and computer
G services 3 G Wholesale and retail trade 3
H Wholesale and retail trade 2 H Transport and storage 5
Accommodation and Accommodation and Food
I restaurants 2 J service activities 2
J Finance and insurance 4 K Information and communication 5
K Real estate 1 L Financial and insurance 3
Renting and commercial
L services 2 M Real estate, rental and leasing 2
Research, technical services Professional, scientific and
M and geological surveying 4 N technical 7
Water conservancy,
environmental resource, Administration and support
N public infrastructure 3 O services 5

O Residential and other services 2 P Education 1

P Education 1 Q Human health and social work 3
Health, social security and Arts, entertainment and
Q welfare 3 R recreation 4

R Culture, sports and recreation 5 S Other service activities 3

Public administration and Public administration and
S social organisations 5 T defence 1
Activities of households as
T International organisations 1 U employers 2
V Extra-territorial organizations 1
20 95 21 87
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 What about products?
CPC
 UN Central Product Classification (CPC) is being revised in
2007
 Central classification but with links to activities where
possible
 Structure will be broadly unchanged
 Considering new information product section
– (between goods and services)?
 Issue: Non-financial assets and services flowing from their
use (Canberra II)?
 Close relation to HS for transportable goods?
 More detail for services

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 CPC version 1.1  version 2.0
0 Agriculture, forestry and fisheries
1 Ores, minerals, electricity, gas and water
2 Food products, textiles, apparel
3 Other transportable goods (excluding metal, machinery and
equipment)
4 Metal, machinery and equipment
5 (Information products) and construction services
6 Distribution, lodging, catering, transport and utilities distribution
services
7 Financial, real estate, rental and leasing services
8 Business and production services
9 Community and personal services

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 CPC Revision
Approximate Timetable

 Proposals requested by UNSD in 2004 by 10

October
 UN TSG will draft new CPC by Spring 2005
 Worldwide consultation 2005
 Finalise CPC version 2 in 2006

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Workshop 6-10 December 2004
 Over to you

Questions for discussion?

 Is China SIC 2002 implemented in

– Business register
– Surveys
– National accounts?
 Is product classification used in China’s
production surveys? (which classification?)
 Do you have questions or comments regarding
ISIC or CPC?

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