Details and Documentation on the Conversion to the 2007 North American Industry Classification System (NAICS) from 2002 NAICS

With the release of the January 2008 data on March 11, 2008, the CES State and area Nonfarm Payroll series converted to the 2007 North American Industry Classification System (NAICS). A limited number of historical time series have been reconstructed as part of the NAICS 2007 conversion process.

• Overview of NAICS
• Notice of Series Changes with the Update to 2007 North American Industry Classification and Annual Benchmark Release on March 11, 2008
• Industry publication criteria and the Small Domain Model
• Guaranteed publication levels
• NAICS Supersectors Used for CES Publication
• CES Series Code Structure under NAICS
• State and area AE series published under NAICS
• Tables showing NAICS 2007 relationship NAICS 2002 (from the Bureau of the Census)
• Sample CES Collection Forms under NAICS

Visit the BLS NAICS page for more information about implementing NAICS at BLS.

Industry Publication Criteria and the Small Domain Model

A minimum guaranteed publication structure, detailed below, was defined for all States and MSAs. The structure consists of "Expanded Supersectors," which break Manufacturing; Trade, Transportation, and Utilities; and Government into further publication detail. All other published series had to pass a minimum sufficiency test of at least 30 unique responding unemployment insurance (UI) accounts in its sample, or a minimum universe employment count of 3,000 with at least 50 percent covered by the sample. The series were tested using first quarter 2001 employment data from the Quarterly Census of Employment and Wages program (QCEW, or ES-202).

Guaranteed industries , and previously published cells, that did not pass the minimum sufficiency test are estimated using a regression model. The CES Small Domain Model (SDM) is a Weighted Least Squares model with three employment inputs: (1) an estimate based on available CES sample for that series, (2)an ARIMA* projection based on trend from 10 years of historical data, and (3) an estimate "borrowed" from the Statewide series for that industry. In addition to the guaranteed industries, Sectors may also be modeled at the Statewide level. (See below.) About 7 percent of State and area CES series are model-based, accounting for less than 2 percent of total nonfarm employment.

*Auto-Regressive Integrated Moving Average. BLS uses an updated version of the X-12 ARIMA software developed by the Census Bureau to seasonally adjust establishment data; this is also used to derive the historical component of the SDM. For more information, see our technical notes on seasonal adjustment at www.bls.gov/ces/cescsa.htm.

 

Guaranteed State and Area Publication Levels

• Total Nonfarm (all in-scope NAICS codes)
  • Total Private (Total Nonfarm less Government)
    • Goods-Producing
      • 10-000000 Natural Resources and Mining (NAICS 1133 [logging], NAICS 21)
      • 20-000000 Construction (NAICS 23)
      • 30-000000 Manufacturing (NAICS 31-33)
    • Service-Providing
      • Private Service-Providing (Service-Providing less Government)
        • Trade, Transportation, and Utilities (NAICS 42, 44, 45, 48, 49, 22)
          • Wholesale Trade (NAICS 42)
          • Retail Trade (NAICS 44-45)
          • Transportation and Utilities (NAICS 48-49, 22)
        • Information (NAICS 51)
        • Financial Activities (NAICS 52, 53)
        • Professional and Business Services (NAICS 54, 55, 56)
        • Education and Health Services (NAICS 61, 62)
        • Leisure and Hospitality (NAICS 71, 72)
        • Other Services (NAICS 81)
  • Government (defined by ownership)
    • Federal
    • State
    • Local

Note: Natural Resources and Mining may be combined with Construction if there is insufficient sample and/or universe employment to publish Mining alone.

 

NAICS Sector Series

BLS supports models for these series for Statewide estimates if there is insufficient sample for direct sample-based estimation. States are not required to publish at these levels if they are not significant industries within the State.

• Transportation and Warehousing (NAICS 48, 49)
• Utilities (NAICS 22)
• Finance and Insurance (NAICS 52)
• Real Estate and Rental and Leasing (NAICS 53)
• Professional, Scientific and Technical Services (NAICS 54)
• Management of Companies and Enterprises (NAICS 55)
• Administration and Support and Waste Management and Remediation Services (NAICS 56)
• Education Services (NAICS 61)
• Health Services and Social Assistance (NAICS 62)
• Arts, Entertainment, and Recreation (NAICS 71)
• Accommodation and Food Services (NAICS 72)

 

Last Modified Date: May 16, 2008