County Business Patterns

Introduction

PURPOSES AND USES OF THE COUNTY BUSINESS PATTERNS

County Business Patterns is an annual series that provides subnational economic data by industry. The series is useful for studying the economic activity of small areas; analyzing economic changes over time; and as a benchmark for statistical series, surveys, and databases between economic censuses. Businesses use the data for analyzing market potential, measuring the effectiveness of sales and advertising programs, setting sales quotas, and developing budgets. Government agencies use the data for administration and planning.

County Business Patterns covers most of the country's economic activity. The series excludes data on self-employed individuals, employees of private households, railroad employees, agricultural production employees, and most government employees.

This series has been published annually since 1964 and at irregular intervals dating back to 1946. The comparability of data over time may be affected by definitional changes in establishments, activity status, and industrial classifications. For more details on these changes, see the “Comparability With Other Data” section below.

ZIP Code Business Patterns data are available shortly after the release of County Business Patterns and include the number of establishments, number of employees, and payroll data by NAICS industry. ZIP Code Business Patterns data were first tabulated and released to the public in 1994.

INDUSTRY CLASSIFICATIONS

Data from County Business Patterns are currently published primarily according to the 2002 North American Industry Classification System (NAICS). The County Business Patterns series includes the following NAICS sectors:

11	Forestry, Fishing and Hunting, and Agricultural Support Services (NAICS 113-115)
21	Mining
22	Utilities
23	Construction
31-33	Manufacturing
42	Wholesale Trade
44-45	Retail Trade
48-49	Transportation and Warehousing
51	Information
52	Finance and Insurance
53	Real Estate and Rental and Leasing
54	Professional, Scientific, and Technical Services
55	Management of Companies and Enterprises
56	Administrative and Support and Waste Management and Remediation Services
61	Educational Services
62	Health Care and Social Assistance
71	Arts, Entertainment, and Recreation
72	Accommodation and Food Services
81	Other Services (except Public Administration)
99	Industries Not Classified

For more information on NAICS, see North American Industry Classification System.

The quinquennial economic censuses are the primary source for industry classifications. The annual Company Organization Survey, Annual Survey of Manufactures, Current Business Surveys, and other Census Bureau programs provide regular updates. Additional sources for assigning industry classifications are the Social Security Administration, the Internal Revenue Service, and the Bureau of Labor Statistics. These sources provide industry classification information for new businesses and businesses not canvassed in the Census Bureau programs. Establishments without sufficient industry information are tabulated in the “Industries Not Classified” group.

Industries Excluded from County Business Patterns

County Business Patterns covers all NAICS industries except crop and animal production (NAICS 111,112), rail transportation (NAICS 482), Postal Service (NAICS 491), pension, health, welfare, and vacation funds (NAICS 525110, 525120, 525190), trusts, estates, and agency accounts (NAICS 525920), private households (NAICS 814), and public administration (NAICS 92).

Government Establishments Included in County Business Patterns

Although most government establishments are excluded from tabulation, County Business Patterns includes government sponsored wholesale liquor establishments (NAICS 4248), retail liquor stores (NAICS 44531), book publishers (511130), federally-chartered savings institutions (NAICS 522120), federally-chartered credit unions (NAICS 522130), and hospitals (NAICS 622).

Professional Employer Organizations

Historically, the permanent on-site work force at a business location were paid employees of that establishment. This traditional practice of firms directly hiring employees is still the dominant employer/employee relationship in the United States. However, over the past decade a new work force arrangement has emerged.

Under this new arrangement, a company commonly known as a professional employer organization (PEO) or employee leasing company operates in a co-employment relationship with client businesses. Employee leasing establishments typically acquire and lease back some or all of the employees of their clients, and serve as the employer of record of the leased employees for payroll, benefits, and related purposes.

The 2007 County Business Patterns shows over 1.98 million employees in professional employer organizations (NAICS 561330), up from 1.93 million employees published in the 2006 CBP. Clearly, the employees are not classified in the predominant industry of the client businesses. Also, professional employer organizations may pay these employees out of a single payroll office. This may result in the leasing company's employment and payroll data being reported in the county where the payroll office is located, thus distorting the data for that county. In some cases, many thousands of employees may be paid from a single payroll office. Therefore, for geography purposes, we may publish employee-leasing establishments in the “statewide” category in states where such payroll offices are located, as these establishments service multiple counties.

RELATIONSHIP TO HISTORICAL INDUSTRY CLASSIFICATIONS

Prior to the 1998 County Business Patterns series, data were published according to the Standard Industrial Classification (SIC) system. NAICS identifies new industries, redefines concepts, and develops classifications to reflect changes in the economy. While many of the individual NAICS industries correspond directly to industries as defined under the SIC system, most of the higher level groupings do not. Particular care should be taken in comparing data for construction, manufacturing, retail trade, and wholesale trade, which are sector titles used in both the NAICS and SIC systems, but cover somewhat different groups of industries. A description and comparison of the 2002 NAICS and SIC systems can be found in the 2002 NAICS and 1987 SIC Correspondence Tables.

COMPARABILITY WITH OTHER DATA

Earlier County Business Patterns

The comparability of data with previous County Business Patterns series may be affected by the following revisions:

• The change in industrial classification systems from the Standard Industrial Classification (SIC) to the North American Industry Classification System (NAICS) occurred in 1998 for the 50 States and District of Columbia; the change from SIC to NAICS occurred in 2003 for the Puerto Rico County Business Patterns data series. For details, see description of the correspondence between the SIC system and the 1997 NAICS.
• Beginning with the 2003 County Business Patterns data series, the industry classifications are based on the 2002 North American Industry Classification System (NAICS). The revisions from the 1997 NAICS are primarily in the Construction, Wholesale Trade, Retail Trade, and Information sectors. For more information, see NAICS revisions for 2002.
• Beginning with the 2003 County Business Patterns series, cases previously classified as “Administrative and auxillary” are coded in the operating NAICS sector of the establishment.
• The change in definition of “active” establishments in 1983.
• The change from a “reporting unit” concept to “establishment”-based data in 1974.

Economic Census

Definitional and coverage differences may affect the direct comparison of Economic Census and County Business Patterns data. See Definitions for an explanation of the data items contained in County Business Patterns.

The Economic Census generally uses respondent-reported data. County Business Patterns uses administrative record data for small establishments. Although efforts are made to resolve significant differences in the data, differences are known to exist.

Some large companies report different activities at the same location as separate profit centers. The County Business Patterns program treats each profit center as a separate establishment. The Economic Census may combine the profit centers into one establishment. This results in establishment count differences.

DATA PRODUCTS

Hypertext Tables and Downloadable Data Files

County Business Patterns data are available in hypertext tables and in downloadable data files at the CBP main page. The hypertext tables provide data users a quick and easy interface to obtain the number of business locations, number of employees, and payroll data by U.S., state, and county totals. Data can also be quickly compared with that from all 50 states or all counties within a state. Downloadable files of County Business Patterns are available from 1988 through the current year's CBP release.

American FactFinder

Starting with the 2004 data year, County Business Patterns (CBP) data are available in American FactFinder. American FactFinder provides data users with tools to filter the CBP data set by the same data groupings previously shown in the CBP publications. The complete CBP data file is also available for free downloading; prior to 2004, the complete CBP data file was only available by purchasing a data disk. Given that complete CBP data are now available through American FactFinder; the Census Bureau is no longer producing CBP data disks or publications. Please see the background information regarding these two products below.

Publications

The County Business Patterns data series produced separate printed reports for each state, the District of Columbia, Puerto Rico, and the United States through 2004. Individual state reports present payroll and employment data for the state and counties by industry. The reports also include the number of establishments by industry and employment size class.

The United States report presents similar data for the country as a whole. In addition, the U.S. report provides employment and payroll data by employment size class for major industry groups.

Data for industries with fewer than 100 employees, as well as data for detailed industries withheld to avoid disclosing data for individual companies, are not shown in the printed reports. However, these data are available on the County Business Patterns data disks.

County Business Patterns publications for 1993 through 2004 are available in portable document format (pdf). In order to view these files, you will need the Adobe Acrobat Reader®, which is available for free from Adobe.

Older County Business Patterns publications, not shown at the link above, can be found at a Federal Depository Library.

The following is a description of the County Business Patterns publications issued through 2004:

• 1974 through 2004 Data are provided for mid-March employment, first-quarter and annual payrolls, and establishments, by industry, for each county in the state and, in a separate report, for the United States. Data are included for every industry having a significant number of employees or establishments. Refer to General Explanation for a description of the types of employment covered.
• 1964 through 1973 Data are provided for first-quarter reporting units, employment, and taxable payrolls for each county and metropolitan area in the state and, in a separate report, for the United States. Data are included for every industry having a significant number of employees or reporting units.
• 1959 and 1962 Data are provided for first-quarter reporting units, employment, and taxable payrolls for each county in the state and, in a separate report, for the United States. Data are included for every industry having a significant number of employees or reporting units. Data are combined for some counties in eight states.
• 1956 Data are provided for first-quarter reporting units, employment, and taxable payrolls for each county in the state and, in a separate report, for the United States. Data are included for SIC economic divisions, major groups, and selected three-digit SICs. Data are combined for some counties in eight states.
• 1949 and 1950 Data are provided for first-quarter manufacturing establishments, employment, and taxable payrolls for each large county in the state and, in a separate report, for the United States. Data are included for manufacturing major industry groups and selected three-digit SICs. Manufacturing totals are included for small counties. Data are combined for some counties in eight states.
• 1947, 1948, 1951, and 1953 Data are provided for first-quarter reporting units, employment, and taxable payrolls for each large county in the state and, in a separate report, for the United States. Data are included for SIC economic divisions, major groups, and selected three-digit SICs. Economic division totals are included for small counties. Data are combined for some counties in eight states.
• 1946 Data are provided for first-quarter reporting units, employment, and taxable payrolls for each large county in the state and, in a separate report, for the United States. Data are included for SIC economic divisions and major groups. Economic division totals are included for small counties. Data are combined for some counties in eight states.

Data Disks

Complete County Business Patterns series data are available on disc (CD-ROM/DVD-ROM) for 1986-2004. These data discs include software for creating County Business Patterns data files compatible with popular database and spreadsheet software. You can order County Business Patterns data disks at the following page in the Census Catalog.

ZIP Code Business Patterns data are available on data disk for 1994-2004. You can order ZIP Code Business Patterns data disks at the following page in the Census Catalog.

To order either product by phone, contact the Census Bureau's Marketing Services Office at 301-763-INFO (4636).

SOURCES OF DATA

County Business Patterns basic data items are extracted from the Business Register, a file of all known single and multiestablishment employer companies maintained and updated by the U.S. Census Bureau. The annual Company Organization Survey provides individual establishment data for multiestablishment companies. Data for single-establishment companies are obtained from various Census Bureau programs, such as the Annual Survey of Manufactures and Current Business Surveys, as well as from administrative record sources.

GEOGRAPHY CLASSIFICATION

Most geography codes are derived from the physical location address reported in Census Bureau programs. The Internal Revenue Service and the Bureau of Labor Statistics provide supplemental address information. Those employers without a fixed location within a state (or of unknown county location) are included under a “statewide” classification at the end of the county tables. This incomplete detail causes only slight understatement of county employment. The independent cities in Virginia, and the cities of Baltimore, MD; Carson City, NV; and St. Louis, MO, are treated as separate counties.

DATA WITHHELD FROM PUBLICATION

In accordance with U.S. Code, Title 13, Section 9, no data are published that would disclose the operations of an individual employer.

Noise Infusion

For 2007, the County Business Patterns has adopted the Noise Infusion method of data protection. Noise infusion is a method of disclosure avoidance in which values for each establishment are perturbed prior to table creation by applying a random noise multiplier to the magnitude data (i.e., characteristics such as first-quarter payroll, annual payroll, and number of employees) for each company. Disclosure protection is accomplished in a manner that results in a relatively small change in the vast majority of cell values. For the 2007 County Business Patterns, each published cell value has an associated noise flag, indicating the relative amount of distortion in the cell value resulting from the perturbation of the data for the contributors to the cell. The flag for ‘low noise’ (G) indicates the cell value was changed by less than 2 percent with the application of noise, and the flag for ‘moderate noise’ (H) indicates the value was changed by 2 percent or more but less than 5 percent. Cells that have been changed by 5 percent or more are suppressed from the published tables. Additionally, other cells in the table may be suppressed for additional protection from disclosure or because the quality of the data does not meet publication standards. Though some of these suppressed cells may be derived by subtraction, the results are not official and may differ substantially from the true estimate.

The number of establishments in a particular tabulation cell is not considered a disclosure; therefore, this information may be released without the addition of protective noise. For an introduction to the noise confidentiality protection method, see Using Noise for Disclosure Limitation of Establishment Tabular Data by Timothy Evans, Laura Zayatz, and John Slanta in the Journal of Official Statistics (1998).

RELIABILITY OF DATA

All data are tabulated from universe files and are not subject to sampling errors. However, the data 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 interpretation of questions; errors in recording or coding the data obtained; and estimation of employers who reported too late to be included in the tabulations and for records with missing or misreported data.

The accuracy of the data is determined by the joint effects of the various nonsampling errors. No direct measurement of these effects has been obtained; however, precautionary steps were taken in all phases of collection, processing, and tabulation to minimize the effects of nonsampling errors. See Coverage and Methodology for more details.

ABBREVIATIONS AND SYMBOLS

The following abbreviations and symbols are used with County Business Patterns data:

-	Represents zero (page image/print only)
D	Withheld to avoid disclosing data of individual companies; data are included in higher level totals
G	Low noise applied to cell value
H	Medium noise applied to cell value
S	Withheld to avoid releasing data that do not meet publication standards; data are included in broader industry totals.
X	Not applicable
a	0 to 19 employees
b	20 to 99 employees
c	100 to 249 employees
e	250 to 499 employees
f	500 to 999 employees
g	1,000 to 2,499 employees
h	2,500 to 4,999 employees
i	5,000 to 9,999 employees
j	10,000 to 24,999 employees
k	25,000 to 49,999 employees
l	50,000 to 99,999 employees
m	100,000 employees or more