U.S. Census Bureau

U.S. Department of Commerce News

     EMBARGOED UNTIL: 12:01 A.M. EDT, SEPTEMBER 8, 1999 (WEDNESDAY)

 
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Barbara Tinari
Marie Lally
301-457-2730


             California and New York Account for One Quarter of 
                    Educational Services Receipts and Revenues, 
                             Census Bureau Reports


  The nation's educational services industries reported $20.7 billion in
receipts and revenues in 1997, with California at $2.9 billion and New
York at $2.2 billion leading all other states, according to individual
state reports from the 1997 Economic Census released today by the Commerce
Department's Census Bureau.

  Together, the two states accounted for about one-fourth of the total
dollar value of receipts and revenues for both taxable and tax-exempt
firms in these industries.

  Among the findings in the reports:

  - The nation's 33,784 taxable educational services establishments
    employed 251,633 people and reported receipts of $15.2 billion. Their
    7,153 tax-exempt counterparts employed 72,388 workers and generated
    revenues totaling $5.5 billion.
  
  - Taxable professional and management-development training and
    educational-support services, two new industries under the North
    American Industry Classification System (NAICS), generated receipts of
    $1.8 billion and $1.4 billion, respectively. Their tax-exempt counterparts
    reported revenue totals of $588.0 million and $2.0 billion, respectively.
    Examples of educational support services include educational testing
    services, student exchange programs, educational counseling and
    educational curriculum development.


  - Receipts of taxable technical and trade schools, which includes several new
    U.S. industry classifications under NAICS, such as flight training and
    cosmetology and barber schools, totaled $3.7 billion.
                                 
  - The nation's 2,785 taxable computer-training establishments reported
    receipts of $2.5 billion.

  Other educational services covered by the economic census include dance
schools, automobile driving schools, language schools, business and secretarial
schools and exam preparation and tutoring. Elementary and secondary schools and
colleges and universities, although part of this sector, were not covered
in the 1997 Economic Census.

  The 52 reports one for each state, the District of Columbia and the
United States are part of the 1997 Economic Census, Geographic Area
Series, Educational Services series. Released on the Internet, the reports
present separate data by industry for firms subject to and exempt from
federal income taxes. Summary levels are state, metropolitan area, county
and place for taxable firms, as well as state and metropolitan area for
tax-exempt firms.
                                
  The 1997 Economic Census marks the premiere of NAICS, a new business
classification system. It replaces the Standard Industrial Classification
(SIC) system begun 60 years ago.
           
  "The United States developed the new system jointly with Canada and Mexico,
making it much easier to compare data with our North American Free Trade
Agreement partners," said Frederick Knickerbocker, the Census Bureau's
associate director for economic programs. "It also is much easier to update, so
that economic data can keep pace with the nation's changing economy."
          
  Data compiled for the Educational Services sector are subject to nonsampling
errors. Nonsampling errors can be attributed to many sources: inability to
identify all cases in the universe; definition and classification difficulties;
differences in the interpretation of questions; errors in recording or
coding the data obtained; and other errors of collection, response, coverage,
processing and estimation for missing or misreported data.
          
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