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. - X-