U S Bureau of Labor Statistics NAICS 2007

U. S. Bureau of Labor Statistics NAICS 2007 A small revision Draft February 2006 1

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 NAICS 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 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 converted directly from their 2002 -based NAICS code to their appropriate 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 568 Alaska 97 Florida 3, 597 Georgia 1, 611 Illinois 2, 748 Maine 282 Massachusetts 2, 273 New Hampshire 397 New York 4, 102 North Carolina 2, 131 South Carolina 681 Vermont 160 Washington 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 FY 2007 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 NAICS 02 field • When working on 2007/1 data – 2007 -based code in NAICS – Final 2002 -based code in NAICS 02

NAICS 02 —aka formerly NSTA What is NAICS 02? • 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

NAICS 02 • 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 NAICS 02 field. • Better (hopefully) examples follow.

Ex. 1—Refiled direct, no other change Year/Q NAICS 02 CMI RC 2006/2 518112 Blank 00 01 2006/3 518112 Blank 00 31 2006/4 518112 00 31 2007/1 519130 518112 00 77

Ex. 2—Refile record, no revision change Year/Q NAICS 02 CMI RC 2006/2 451140 Blank 00 01 2006/3 451140 Blank 00 02 2006/4 451140 00 41 2007/1 451140 00 41

Ex. 3—Revision record, no other code change Year/Q NAICS 02 CMI RC 2006/2 111219 Blank 05 01 2006/3 111219 Blank 05 31 2006/4 111219 05 77 2007/1 111219 05 77

Ex. 4—Refile record, changed to a direct Year/Q NAICS 02 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 + 42 + 46 + 50 + 57 + 63 + 64 + 65 + 76 + 77 --------------------------------------------------------00+01+02+03+ 04 + 11 + 30 + 31 + 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 + 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 Edits 010 – Invalid NAICS code 012 – Invalid Ownership code 013 – Invalid County code 016 – NAICS and Ownership Inconsistent 046 – Invalid ARS Response Code/Year 065 – Inconsistent County/Township Combination 074 – Invalid Old Ownership 075 – Invalid Old County 076 – Invalid Old County/Old Township Combination 078 – Invalid Old NAICS code 120 – Possible Non-economic Code Change 123 – Expected Code Change Not Made 146 – Old Codes are Inconsistent with 4 th Quarter Codes 156 – Predecessor/Successor County Code Conflict 157 – Predecessor/Successor Ownership Code Conflict 159 – Predecessor/Successor Township Code Conflict 164 – Predecessor/Successor NAICS Code Conflict

New Edit (Short Term) 017 – Invalid 2002 to 2007 NAICS Code Relationship • Only run on 2007/1 data • Checks NAICS 02 code for a valid 2002 -based code • Checks NAICS code for a valid 2007 -based code • Checks crosswalk that NAICS 02 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 NAICS 02 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