Embargoed: 2 p.m. EST
Tuesday, March 16, 1999
Contact: Barbara Warner (202) 482-2530 (Commerce)
Dwight Johnson (301) 457-3030 (Census)
Commerce Department Releases
First Key Measurements of the 21st Century Economy
1997 Economic Census Marks Premiere of New Business Classification System
The Commerce Department's Census Bureau today released the 1997 Economic Census,
marking the premiere of a new business classification system that will be
used to measure the U.S. economy in the new century.
The 1997 Economic Census is based on the new system known as the North
American Industry Classification System (NAICS) and contains, for the
first time, measurement of such key components of the 21st Century economy
as information, high-tech support services and entertainment sectors,
among others.
The 1997 Economic Census data were released at a news conference by
Commerce Under Secretary for Economic Affairs Robert J. Shapiro, Census
Bureau Director Kenneth Prewitt and Bureau of Economic Analysis Director
J. Steven Landefeld.
Commerce Secretary William M. Daley said, "The 1997 Economic Census
reveals a diverse, high-powered economy that, guided by the
Administration's sound economic policy, is fueling the longest peacetime
expansion in our history."
"The 1997 Economic Census provides the first snapshot of the economy as
it enters the new millennium," Shapiro said. "This new and improved
version gives business and government a better framework to make decisions
that will keep our economy in high gear."
Prewitt added, "Our new system of measurement is organized the way our
economy is organized, recognizing the role of new technology and the
services that define our daily lives."
The economic census provides a detailed portrait of the economy every
five years, from the national to the local level. Results from the 1997
census will provide information on businesses operating at more than 21
million locations, giving key information on the number of businesses and
employees, the value of shipments, sales, receipts, revenue and payroll.
This advance report is the first in a series of more detailed reports that
will follow over the next two years.
Among the key findings of the 1997 Economic Census using NAICS:
The nation's information sector, including publishing, motion
pictures, broadcasting, telecommunications, and information and data
processing services, generates 3.2 million jobs, a $135 billion
annual payroll and $642 billion in receipts at 115,000 locations.
The health care/social assistance sector generates 13.6 million
jobs, a $379 billion annual payroll and $890 billion in receipts at
645,000 locations.
The professional/scientific/technical services sector, including
scientists, engineers, architects, programmers and designers,
generates 5.4 million jobs, a $233 billion annual payroll and $609
billion in receipts at 622,000 locations.
The administrative/support services subsector, including employment
agencies, employee leasing services, phone centers, telemarketing
bureaus and travel agencies, generates 7.2 million jobs, a $129
billion annual payroll and $262 billion in receipts at 260,000
locations.
The computer/electronic manufacturing sector generates 1.7 million
jobs, a $71 billion annual payroll and $431 billion in shipments at
17,000 locations.
The arts/entertainment/recreation sector generates 1.6 million jobs,
a $32 billion annual payroll and $103 billion in receipts at 100,000
locations.
Other highlights include:
The manufacturing sector employs the most people at 17 million
employees, followed by retail trade at 14 million employees and
health care/social assistance at 14 million employees.
The top five manufacturing subsectors by shipment value are
transportation equipment ($578 billion), computers/electronic
products ($431 billion), food ($425 billion), chemicals ($418
billion) and machinery ($272 billion).
The top five retail subsectors by sales are motor vehicle/parts
dealers ($648) billion, food/beverage stores ($401 billion), general
merchandise stores ($330 billion), building material/garden equipment
stores ($230 billion) and gas stations ($198 billion).
The NAICS system replaces the Standard Industrial Classification (SIC)
system begun 60 years ago. NAICS better measures the 21st Century economy
by highlighting businesses that contribute the most to our economy and
classifying businesses consistently by production process. Jointly
developed with Canada and Mexico, the system makes possible comparisons
with these major trading partners. And the system is easily updated to
reflect the changing economy.
The NAICS system provides 1,170 detailed U.S. industry classifications,
or 15 percent more than were available under the old system. This includes
358 new industries and 390 revised industry classifications. Only 422
industries will continue to be measured in the same way. Many government
agencies are expected to use the new system to redesign and benchmark
other economic statistics programs.
The data in this report are preliminary, subject to change and will be
superceded by data released in later reports. Businesses without employees
will be included in later reports. Economic census data are subject to
nonsampling error due to nonresponse, coverage problems, misreporting and
processing errors.
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