1997 Economic Census:
ZIP Code Statistics
Introductory Text

ZIP Code Statistics
Introduction - Scope - Comparability - Reliability of data - Disclosure

Background on the Economic Census
Purposes and uses of the Economic Census - Industry classifications - Geographic area coding - Basis of reporting - Dollar values - Availability of additional data - Historical information - Sources for more information - Abbreviations and symbols

Appendix A: Explanation of Terms
Establishments - Sales, Shipments, Receipts, Revenue, or Business Done - Annual Payroll - Employees

Acknowledgments

ZIP Code Statistics

INTRODUCTION

This report presents statistics for five-digit ZIP Codes in 9 of the 18 sectors covered in the 1997 Economic Census:

These sectors include roughly 70 percent of employees counted in the economic census.

The statistics shown for these sectors include the number of establishments, sales or receipts, annual payroll, and number of employees, except for manufacturing, where only the number of establishments is shown. These totals are shown only at the sector (2-digit NAICS) level. Because business activity in many ZIP Codes is dominated by a very small number of establishments, the sales or receipts, payroll, and employment figures are shown in ranges to avoid disclosure of confidential information. These sector totals are published only on the Internet. The data may be viewed as hypertext tables or may be downloaded nationwide.

The ZIP Code Statistics CD-ROM presents complementary statistics: for each ZIP code, by detailed NAICS industry, the number of establishments in several employment-size categories, typically establishments with fewer than 5 employees, 5 to 9, 10 to 19, 20 to 49, 50 to 99, and 100 employees or more. For eight of the sectors, excluding manufacturing, there are also counts of establishments by size of sales or receipts. These establishment counts by size class are not considered to be a disclosure of confidential information, so a data line is present for every kind of business with one or more establishments within a ZIP Code.

SCOPE

ZIP Code Statistics include establishments with paid employees. Nonemployers, i.e., establishments with no paid employees, are excluded. Nonemployers account for only a few percent of the sales or receipts economy-wide, yet they are actually much more numerous than employers. For more information, see Nonemployer Statistics.

Statistics are shown for the United States, the states, the District of Columbia, and, depending on the sector, as shown below, for 5-digit ZIP Codes.

Geographic Areas in the 1997 Economic Census
"t" indicates data are not available for tax-exempt firms at this level.

Sector

States

MA's

Coun-
ties

Places
2500+

ZIP
Codes

Mining

X





Utilities

X

X




Construction

X





Manufacturing

X

X

X

X

X

Wholesale Trade

X

X

X

X


Retail Trade

X

X

X

X

X

Transportation and Warehousing

X

X




Information

X

X

X

X


Finance and Insurance

X

X

 

 


Real Estate and Rental and Leasing

X

X

X

X


Professional, Scientific, and Technical Services

X

X

t

t

t

Management of Companies and Enterprises

X





Administrative and Support and Waste Management and Remediation Services

X

X

X

X

X

Educational Services

X

X

t

t

t

Health Care and Social Assistance

X

X

t

t

t

Arts, Entertainment and Recreation

X

X

t

t

t

Accommodation and Foodservices

X

X

X

X

X

Other Services (Except Public Administration)

X

X

t

t

t

Note in the chart above that data for five of the nine covered sectors are limited to firms subject to federal income tax. Tax-exempt firms, such as most hospitals, are excluded.

COMPARABILITY

ZIP Codes are administrative entities of the U.S. Postal Service. ZIP Codes generally do not coincide with the Census Bureau's geographic or political areas, and they change according to postal requirements. Most ZIP Codes do not have specific boundaries, and their implied boundaries do not necessarily follow clearly identifiable physical features. At the time of the 1997 Economic Census, there were about 42,000 ZIP Codes, although several thousand had no business activity and are not included in these files.

Relationship to Economic Census data for places

For user convenience, data displays for Economic Census ZIP Code Statistics include the name of a city or place nearby. This is generally the preferred name provided by the Postal Service. There is no consistent relationship between names associated with ZIP Codes and the boundaries of the named entity--a ZIP Code may be entirely inside the place, partly inside and partly outside it, or merely near it. Many ZIP Codes are associated with more than one place name, although for this publication only one of the names can be used in menus and data displays.

Each census questionnaire asked the respondent to provide the street address, city, county, and ZIP Code for the physical location of the establishment. Some respondents, particularly those using a Post Office box or filing tax reports from a separate office, may report a ZIP Code that does not correspond to the physical location. As a result the reported ZIP Code may not be consistent with the tabulated place or county.

Where the ZIP Code provided was outside the range of ZIP Codes for the state, a ZIP Code was assigned from lists based on the street address. Where there was not sufficient address information available, the establishment was assigned to ZIP Code 99999. Code 99999 is tabulated separately for each state so that ZIP Code establishment counts are additive to the state level.

Comparability to 1992 and 1987 ZIP Code Statistics

ZIP Code Statistics have previously been published on CD-ROM for retail trade for 1982, 1987, and 1992; for service industries for 1987 and 1992, and for manufacturing for 1992. Data for earlier years may not be comparable with these data because--

Comparability to ZIP Code Business Patterns

ZIP Code Business Patterns (ZBP) publishes counts of establishments by employment size class by industry every year. ZBP's preeminent advantage, in addition to being published annually, is that it covers all private nonfarm industries, not just those in the 9 sectors shown in the chart above. At the same time, ZBP has no data on sales or receipts, and its employment and payroll numbers are shown only for the aggregate of all covered industries, not for each sector.

ZBP data for 1998 and subsequent years use the same NAICS-based classifications as the 1997 Economic Census. ZBP data are also available for 1994 through 1997, but classified by SIC, not NAICS.

ZBP establishment counts may differ substantially from census establishment counts for the five sectors where census ZIP Code data are limited to businesses subject to federal income tax. For example, most hospitals and museums would be excluded from census ZIP data but included in ZBP, since most hospitals and museums are tax-exempt.

Comparability to Census 2000 data and maps

Census 2000 treats the ZIP Codes in an entirely different way. Rather than rely directly on respondent reports, Census 2000 defined ZIP Code Tabulation Areas (ZCTAs). Each census block was assigned to a ZCTA based on the ZIP Code of the largest number of residential mailing addresses within it. While this allows ZCTAs to be mapped (even some PO Box ZIP Codes), the process does introduce some error. Some census blocks are quite large and may be served by multiple ZIP Codes. Further, the ZIP Code assignment process ignores commercial addresses, and over 7000 ZIP Codes with business activity but without population are not included. Thus, the Census 2000 ZCTA maps provide a convenient reference but may not represent precisely the area reflected in business statistics by ZIP Code.

Census 2000 data report the residents in a ZIP Code while employment data from the Economic Census and ZBP reflect people who work in the ZIP Code. This may be particularly confusing when Census 2000 Summary File 3 is issued in 2002, including counts of residents by the broad industry group in which they work.

Availability of summary statistics by employment-size and sales/receipts-size class

The ZIP Code Statistics CD-ROMs provide counts of establishments by categories of employment-size and sales/receipt-size by NAICS code by ZIP Code. Establishment and Firm Size reports provide at the national level the aggregate sales or receipts, employment, and payroll for each size class by NAICS code. In the absence of employment and sales figures for individual industries at the ZIP Code level, some users make synthetic estimates thereof by applying industry- and size-specific averages for sales per establishment and employees per establishment to establishment counts by size at the ZIP Code level. Such users should approach synthetic estimation with caution, and also use the establishment-size tables provided rather than firm-size tables.

RELIABILITY OF DATA

Most data compiled in this report originated from either census questionnaires or administrative records of other Federal agencies and, therefore, are not subject to sampling errors. However, all of the data are subject to nonsampling errors. Nonsampling errors can be attributed to many sources: inability to identify all cases in the actual 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, and estimation for missing or misreported data.

The accuracy of these tabulated data is determined by the joint effects of the various nonsampling errors. No direct measurement of these effects has been obtained except for estimation for missing or misreported data; however, precautionary steps were taken in all phases of the collection, processing, and tabulation of the data in an effort to minimize the effects of nonsampling errors.

Moreover, the Census Bureau obtains limited information extracted from administrative records of other Federal agencies. This information is used in conjunction with other information available to the Census Bureau to develop estimates for nonemployers, small employers, and other establishments for which responses were not received in time for publication.

DISCLOSURE

In accordance with Federal law governing census reports (Title 13 of the United States Code), no data are published that would disclose the operations of an individual establishment or company. However, the number of establishments classified in a specific industry or geography is not considered a disclosure and may be released even when other information is withheld.

Background on the Economic Census

 

PURPOSES AND USES OF THE ECONOMIC CENSUS

The economic census is the major source of facts about the structure and functioning of the Nation's economy. It provides essential information for government, business, industry, and the general public. Title 13 of the United States Code (Sections 131, 191, and 224) directs the Census Bureau to take the economic census every 5 years, covering years ending in 2 and 7.

The economic census furnishes an important part of the framework for such composite measures as the gross domestic product estimates, input/output measures, production and price indexes, and other statistical series that measure short-term changes in economic conditions. Specific uses of economic census data include the following:

Policymaking agencies of the Federal Government use the data to monitor economic activity and to assess the effectiveness of policies.

State and local governments use the data to assess business activities and tax bases within their jurisdictions and to develop programs to attract business.

Trade associations study trends in their own and competing industries, which allows them to keep their members informed of market changes.

Individual businesses use the data to locate potential markets and to analyze their own production and sales performance relative to industry or area averages.

INDUSTRY CLASSIFICATIONS

This report presents data classified according to the 1997 North American Industry Classification System (NAICS). NAICS supersedes the Standard Industrial Classification (SIC) used in reports from prior censuses.

Relationship Between NAICS and SIC

While many of the individual SIC industries correspond directly to industries as defined under the NAICS system, most of the higher level groupings do not. Particular care should be taken in comparing data for retail trade, wholesale trade, and manufacturing, which are sector titles used in both NAICS and SIC, but cover somewhat different groups of industries. The industry definitions discuss the relationships between NAICS and SIC industries. Where changes are significant, it will not be possible to construct time series that include data for points both before and after 1997.

These relationships are further explored in the Bridge Between NAICS and SIC.

GEOGRAPHIC AREA CODING

Accurate and complete information on the physical location of each establishment is required to tabulate the census data for states, metropolitan areas (MAs), counties, parishes, and corporate municipalities including cities, towns, villages, and boroughs. Respondents were required to report their physical location (street address, municipality, county, state, and ZIP Code) if it differed from their mailing address. For establishments not surveyed by mail (and those single-establishment companies that did not provide acceptable information on physical location), location information from Internal Revenue Service tax forms is used as a basis for coding.

BASIS OF REPORTING

The economic census is conducted on an establishment basis. A company operating at more than one location is required to file a separate report for each store, factory, shop, or other location. Each establishment is assigned a separate industry classification based on its primary activity and not that of its parent company.

DOLLAR VALUES

All dollar values presented are expressed in current dollars; i.e., 1997 data are expressed in 1997 dollars. Consequently, when making comparisons with prior years, users of the data should consider the changes in prices that have occurred.

All dollar values are shown in thousands of dollars.

AVAILABILITY OF ADDITIONAL DATA

Reports in Print and Electronic Media

All results of the 1997 Economic Census are available on the Census Bureau Internet site (www.census.gov) and on CD-ROMs for sale by the Census Bureau. Unlike previous censuses, only selected highlights are published in printed reports. For more information, including a description of electronic and printed reports issued, see the Internet site, write to U.S. Census Bureau, Washington, DC 20233-8300, or call Customer Services at 301-763-INFO.

Special Tabulations

Special tabulations of data collected in the 1997 Economic Census may be obtained, depending on availability of time and personnel, in electronic or tabular form. The data will be summaries subject to the same rules prohibiting disclosure of confidential information (including name, address, kind of business, or other data for individual business establishments or companies) that govern the regular publications.

Special tabulations are prepared on a cost basis. A request for a cost estimate, as well as exact specifications on the type and format of the data to be provided, should be directed to the Chief of the division named below, U.S. Census Bureau, Washington, DC 20233-8300. To discuss a special tabulation before submitting specifications, call the appropriate division:

Manufacturing and Construction Division 301-457-4673

Service Sector Statistics Division 301-457-2668

HISTORICAL INFORMATION

The economic census has been taken as an integrated program at 5-year intervals since 1967 and before that for 1954, 1958, and 1963. Prior to that time, individual components of the economic census were taken separately at varying intervals.

The economic census traces its beginnings to the 1810 Decennial Census, when questions on manufacturing were included with those for population. Coverage of economic activities was expanded for the 1840 Decennial Census and subsequent censuses to include mining and some commercial activities. The 1905 Manufactures Census was the first time a census was taken apart from the regular decennial population census. Censuses covering retail and wholesale trade and construction industries were added in 1930, as were some covering service trades in 1933. Censuses of construction, manufacturing, and the other business service censuses were suspended during World War II.

The 1954 Economic Census was the first census to be fully integrated: providing comparable census data across economic sectors, using consistent time periods, concepts, definitions, classifications, and reporting units. It was the first census to be taken by mail, using lists of firms provided by the administrative records of other Federal agencies. Since 1963, administrative records also have been used to provide basic statistics for very small firms, reducing or eliminating the need to send them census questionnaires.

The range of industries covered in the economic censuses expanded between 1967 and 1992. The census of construction industries began on a regular basis in 1967, and the scope of service industries, introduced in 1933, was broadened in 1967, 1977, and 1987. While a few transportation industries were covered as early as 1963, it was not until 1992 that the census broadened to include all of transportation, communications, and utilities. Also new for 1992 was coverage of financial, insurance, and real estate industries. With these additions, the economic census and the separate census of governments and census of agriculture collectively covered roughly 98 percent of all economic activity.

Printed statistical reports from the 1992 and earlier censuses provide historical figures for the study of long-term time series and are available in some large libraries. All of the census reports printed since 1967 are still available for sale on microfiche from the Census Bureau. CD-ROMs issued from the 1987 and 1992 Economic Censuses contain databases including nearly all data published in print, plus additional statistics, such as ZIP Code statistics, published only on CD- ROM.

SOURCES FOR MORE INFORMATION

More information about the scope, coverage, classification system, data items, and publications for each of the economic censuses and related surveys is published in the Guide to the 1997 Economic Census and Related Statistics at www.census.gov/epcd/www/guide.html. More information on the methodology, procedures, and history of the census is published in the History of the 1997 Economic Census, on the web at www.census.gov/econ/www/history.html, and in print.

ABBREVIATIONS AND SYMBOLS

The following abbreviations and symbols are used in this report:

D Withheld to avoid disclosing data of individual companies; data are included in higher level totals.
N Not available or not comparable.
r Revised.
nec Not elsewhere classified.

Appendix A - Explanation of Terms

Number of Establishments

General Definition

An establishment is a single physical location at which business is conducted and/or services are provided. It is not necessarily identical with a company or enterprise, which may consist of one establishment or more. Economic census figures represent a summary of reports for individual establishments rather than companies. For cases where a census report was received, separate information was obtained for each location where business was conducted. When administrative records of other Federal agencies were used instead of a census report, no information was available on the number of locations operated. Each economic census establishment was tabulated according to the physical location at which the business was conducted. The count of establishments represents those in business at any time during 1997.

When two activities or more were carried on at a single location under a single ownership, all activities generally were grouped together as a single establishment. The entire establishment was classified on the basis of its major activity and all data for it were included in that classification. However, when distinct and separate economic activities (for which different industry classification codes were appropriate) were conducted at a single location under a single ownership, separate establishment reports for each of the different activities were obtained in the census.

Sector-Specific Information

Accommodation and Foodservices - Leased departments are treated as separate establishments and are classified according to the kind of business they conduct. For example, a leased department selling gifts/souvenirs within a hotel would be considered a separate establishment under the "gift, novelty, and souvenir stores" classification in the Retail Trade sector.

Administrative and Support, Waste Management and Remediation Services; Arts, Entertainment, and Recreation; Educational Services; Health Care and Social Assistance; Information; Professional, Scientific, and Technical Services; and Other Services (except Public Administration) - An establishment is included in the census if it is an employer, the establishment has $1,000 in payroll, and was in operation at any time during 1997. Leased service departments (separately owned businesses operated as departments or concessions of other service establishments or of retail businesses, such as a separately owned shoeshine parlor in a barber shop, or a beauty shop in a department store) are treated as separate service establishments for census purposes. Leased retail departments located in service establishments (e.g., a gift shop located in a hotel) are considered separate retail establishments.

Retail Trade - Leased departments are treated as separate establishments and are classified according to the kind of business they conduct. For example, a leased department selling shoes within a department store would be considered a separate retail establishment under the "shoe stores" classification.

Sales, Shipments, Receipts, Revenue, or Business Done

General Definition

Includes the total sales, shipments, receipts, revenue, or business done by establishments within the scope of the economic census. The definition of each of these items is included in the information provided below.

Sector-Specific Information

Accommodation and Foodservices - Includes sales from customers for services rendered, from the use of facilities and from merchandise sold. Also includes dues and assessments from members and affiliates.

Sales do not include carrying or other credit charges; sales (or other) taxes collected from customers and forwarded to taxing authorities; gross sales and receipts of departments or concessions operated by other companies; and commissions or receipts from the sale of government lottery tickets.

Excludes sales from civic and social organizations; amusement and recreation parks; theaters; and other recreation or entertainment facilities providing food and beverage services.

Administrative and Support, Waste Management and Remediation Services - Includes receipts from customers or clients for services rendered, from the use of facilities, and from merchandise sold during 1997 whether or not payment was received in 1997. For advertising agencies, travel industries, and other service establishments operating on a commission basis, receipts include commissions, fees, and other operating income, NOT gross billings and sales. Excise taxes on gasoline, liquor, tobacco, etc., which are paid by the manufacturer or wholesaler and passed on in the cost of goods purchased by the service establishment, are also included. The establishments' share of receipts from departments, concessions, and vending and amusement machines operated by others are included as part of receipts. Receipts also include the total value of service contracts, market value of compensation received in lieu of cash, amounts received for work subcontracted to others, and dues and assessments from members and affiliates. Receipts from services provided to foreign customers from U.S. locations, including services performed for foreign parent firms, subsidiaries, and branches are included.

Receipts are net after deductions for refunds and allowances for merchandise returned by customers. Receipts DO NOT include sales, occupancy, admissions, or other taxes collected from customers and remitted directly by the firm to a local, state, or Federal tax agency, nor do they include income from such sources as contributions, gifts, and grants; dividends, interest, and investments; or sale or rental of real estate. Also excluded are receipts (gross) of departments and concessions which are operated by others; sales of used equipment rented or leased to customers; domestic intracompany transfers; receipts of foreign subsidiaries; and other nonoperating income, such as royalties, franchise fees, etc. Receipts DO NOT include service receipts of manufacturers, wholesalers, retail establishments, or other businesses whose primary activity is other than service. They do, however, include receipts other than from services rendered (e.g., sale of merchandise to individuals or other businesses) by establishments primarily engaged in performing services and classified in the service industries.

Arts, Entertainment, and Recreation; Educational Services; Health Care and Social Assistance; Professional, Scientific, and Technical Services; and Other Services (except Public Administration) - Receipts (basic dollar volume measure for service establishments of firms subject to Federal income tax): Includes receipts from customers or clients for services rendered, from the use of facilities, and from merchandise sold during 1997 whether or not payment was received in 1997. For advertising agencies, travel industries, and other service establishments operating on a commission basis, receipts include commissions, fees, and other operating income, NOT gross billings and sales. Excise taxes on gasoline, liquor, tobacco, etc., which are paid by the manufacturer or wholesaler and passed on in the cost of goods purchased by the service establishment, are also included. The establishments' share of receipts from departments, concessions, and vending and amusement machines operated by others are included as part of receipts. Receipts also include the total value of service contracts, market value of compensation received in lieu of cash, amounts received for work subcontracted to others, and dues and assessments from members and affiliates. Receipts from services provided to foreign customers from U.S. locations, including services performed for foreign parent firms, subsidiaries, and branches are included.

Receipts are net after deductions for refunds and allowances for merchandise returned by customers. Receipts do not include sales, occupancy, admissions, or other taxes collected from customers and remitted directly by the firm to a local, state, or Federal tax agency, nor do they include income from such sources as contributions, gifts, and grants; dividends, interest, and investments; or sale or rental of real estate. Also excluded are receipts (gross) of departments and concessions which are operated by others; sales of used equipment rented or leased to customers; domestic intracompany transfers; receipts of foreign subsidiaries; and other nonoperating income, such as royalties, franchise fees, etc. Receipts do not include service receipts of manufacturers, wholesalers, retail establishments, or other businesses whose primary activity is other than service. They do, however, include receipts other than from services rendered (e.g., sale of merchandise to individuals or other businesses) by establishments primarily engaged in performing services and classified in the service industries.

Revenue (basic dollar volume measure for firms exempt from Federal income tax): Includes revenue from customers or clients for services rendered and merchandise sold during 1997, whether or not payment was received in 1997, and gross sales of merchandise, minus returns and allowances. Also included are income from interest, dividends, gross rents (including display space rentals and share of receipts from departments operated by other companies), gross contributions, gifts, grants (whether or not restricted for use in operations), royalties, dues and assessments from members and affiliates, commissions earned from the sale of merchandise owned by others (including commissions from vending machine operators), and gross receipts from fundraising activities. Receipts from taxable business activities of firms exempt from Federal income tax (unrelated business income) are also included in revenue.

Revenue does not include sales, admissions, or other taxes collected by the organization from customers or clients and paid directly to a local, state, or Federal tax agency; income from the sale of real estate, investments, or other assets (except inventory held for resale); gross receipts of departments, concessions, etc., that are operated by others; and amounts transferred to operating funds from capital or reserve funds.

Auxiliaries - Sales is defined as income received from sources outside of the company. Included are merchandise sales, receipts for services provided, franchise and license fees, royalties, and other nonoperating revenues. These sales exclude all excise and sales taxes that are paid directly to taxing agencies. Also excluded are transactions with other establishments of the owning company.

Manufacturing - This item covers the net selling values, f.o.b. mine or plant after discounts and allowances (exclusive of freight and excise taxes), of all products shipped, both primary and secondary, as well as all miscellaneous receipts, such as installation and repair, sales of scrap, and sales of products bought and sold without further processing. Included are all products physically shipped by the establishments, whether sold, transferred to other plants of the same company, or shipped on consignment. For products transferred to other establishments of the same company, or prepared on a custom or toll basis, companies were requested to report the estimated value, not merely the cost of producing the product.

In addition to the value for (North American Industry Classification System) NAICS-defined products, aggregates of the following categories of miscellaneous receipts are reported as part of a total establishment's value of shipments and receipts:

1. Receipts for services. Receipts for work or services that an establishment performed for others.

2. Value of resales. Sales of products brought and sold without further processing.

3. Other miscellaneous receipts. Such as repair work, installation, sales of scrap, etc.

An establishment's value of shipments and receipts include those products assigned to an industry (primary products), those considered primary to other industries (secondary products), receipts for services and miscellaneous activities, and the value of resales.

Revenue does not include sales and other taxes collected from customers and remitted directly by the firm to a local, state, or Federal tax agency.

Retail Trade - Includes merchandise sold for cash or credit at retail and wholesale by establishments primarily engaged in retail trade; amounts received from customers for layaway purchases; receipts from rental of vehicles, equipment, instruments, tools, etc.; receipts for delivery, installation, maintenance, repair, alteration, storage, and other services; the total value of service contracts; and gasoline, liquor, tobacco, and other excise taxes which are paid by the manufacturer or wholesaler and passed on to the retailer.

Sales are net after deductions for refunds and allowances for merchandise returned by customers. Trade-in allowances are not deducted from sales. Sales do not include carrying or other credit charges; sales (or other) taxes collected from customers and forwarded to taxing authorities; gross sales and receipts of departments or concessions operated by other companies; and commissions or receipts from the sale of government lottery tickets.

Sales do not include retail sales made by manufacturers, wholesalers, service establishments, or other businesses whose primary activity is other than retail trade. They do include receipts other than from the sale of merchandise at retail, e.g., service receipts, sales to industrial users, and sales to other retailers by establishments primarily engaged in retail trade.

Transportation and Warehousing; and Utilities - Includes revenue from all business activities whether or not payment was received in the census year. Revenue does not include sales and other taxes collected from customers and remitted directly by the firm to a local, State, or Federal tax agency.

Annual Payroll

General Definition

Payroll includes all forms of compensation, such as salaries, wages, commissions, dismissal pay, bonuses, vacation allowances, sick-leave pay, and employee contributions to qualified pension plans paid during the year to all employees. For corporations, payroll includes amounts paid to officers and executives; for unincorporated businesses, it does not include profit or other compensation of proprietors or partners. Payroll is reported before deductions for social security, income tax, insurance, union dues, etc. This definition of payroll is the same as that used by the Internal Revenue Service (IRS) on Form 941.

Sector-Specific Information

Accommodation and Foodservices; and Retail Trade - Includes tips and gratuities received by employees from patrons and reported to employers. Excludes payrolls of departments or concessions operated by other companies at the establishment.

Administrative and Support, Waste Management and Remediation Services; Arts, Entertainment, and Recreation; Educational Services; Health Care and Social Assistance; Information; Professional, Scientific, and Technical Services; and Other Services (except Public Administration) - Also included are tips and gratuities received by employees from patrons and reported to employers and the value of payments in kind (e.g., free meals and lodging). If an employee works at more than one location, the payroll is included in the one location where they spend most of their time. Also included are salaries of professional service organizations or associations which operate under state professional corporation statutes and file a corporate Federal income tax return. Excluded are payrolls of departments or concessions operated by other companies at the establishment.

Manufacturing; - Also excluded are payments to members of Armed Forces and pensioners carried on the active payrolls of manufacturing establishments.

Number of Employees

General Definition

Paid employees consists of full-time and part-time employees, including salaried officers and executives of corporations, who (for all sectors except Construction and Manufacturing) were on the payroll during the pay period including March 12. Included are employees on paid sick leave, paid holidays, and paid vacations; not included are proprietors and partners of unincorporated businesses. The definition of paid employees is the same as that used on IRS Form 941.

Sector-Specific Information

Accommodation and Foodservices; and Retail Trade - Excludes employees of departments or concessions operated by other companies at the establishment.

Administrative and Support, Waste Management and Remediation Services; Arts, Entertainment, and Recreation; Educational Services; Health Care and Social Assistance; Information; Professional, Scientific, and Technical Services; and Other Services (except Public Administration) - Included are members of professional service organizations or associations which operate under state professional corporation statutes and file corporate Federal income tax returns. Not included are employees of departments or concessions operated by other companies at the establishment.

Manufacturing - Comprise all full-time and part-time employees on the payrolls of manufacturing establishments, who worked or received pay for any part of the pay period including the 12th of March, May, August, and November.

Acknowledgments

Many persons participated in the various activities of the 1997 Economic Census for this report.

The Economic Planning and Coordination Division prepared this report. Mark E. Wallace, Chief, Economic Planning Staff, was responsible for the overall planning, management, and coordination. Shirin A. Ahmed, Assistant Chief for Post-Collection Processing, was responsible for editing and tabulation procedures and designing the interactive analytical software.

Mathematical and statistical techniques as well as the coverage operations were provided by Carl A. Konschnik and Brian Greenburg, Assistant Chiefs for Research and Methodology.

Analytic review and correction of the data were provided by the staffs of the Manufacturing and Construction Division, William G. Bostic Jr., Chief, and the Service Sector Statistics Division, Carole A. Ambler, Chief.

The staff of the National Processing Center, Judith N. Petty, Chief, performed mailout preparation and receipt operations, clerical and analytical review activities, and data entry.

The Geography Division staff, Robert Marx, Chief, developed geographic coding procedures and associated computer programs.

The Economic Statistical Methods and Programming Division, Charles P. Pautler Jr., Chief, developed and coordinated the computer processing systems.

Computer Services Division, Debra D. Williams, Chief, performed the computer processing.

The staff of the Administrative and Customer Services Division, Walter C. Odom, Chief, performed publication planning, design, composition, editorial review, and printing planning and procurement for publications and report forms.

Special acknowledgment is also due the many businesses whose cooperation has contributed to the publication of these data.

General questions concerning the new NAICS system should be directed to 1-888-75NAICS. Specific questions regarding data in the Manufacturing, Mining, or Construction sectors should be directed to the Information Services Center, Manufacturing and Construction Division, on 1-800-201-4647. Questions regarding data for all other Economic sectors should be directed to Service Sector Statistics Division on 1-800-541-8345.