ISIC Coding IssuesISIC Coding Issues

Jürgen SchwärzlerJürgen Schwärzler,,UN Statistics Division, Classifications SectionUN Statistics Division, Classifications Section

Problems with current systemProblems with current system

• Use of Use of lettersletters at top has been at top has been criticizedcriticized• Pure numerical easier to handle in Pure numerical easier to handle in

computer systemscomputer systems• 1717 top top SectionsSections are too much; are too much;

Manufacturing too detailedManufacturing too detailed• length of the codelength of the code: change from 4 to 5 digit : change from 4 to 5 digit

code would be costly (sequential files)code would be costly (sequential files)

ISIC 3.1 coding systemISIC 3.1 coding system

A D Q…LEVEL 1

99LEVEL 2

LEVEL 3

0201

…

15 27…… …

011 012 013 014 271 272 273 990

2731 2732LEVEL 4 99002710 27200130 0140

…

…

…

…0111 0112 0113 …

…

……

ISIC 3.1 coding systemISIC 3.1 coding system

• Characteristics:Characteristics:• 4 digits/3 levels + 1 letter for top level4 digits/3 levels + 1 letter for top level• 17 top level 17 top level Sections

• 62 Divisions

• 161 Groups

• 297 classes• Manufacturing with 23 DivisionsManufacturing with 23 Divisions

ISIC 3.1 coding systemISIC 3.1 coding system

• Advantages:Advantages:• Numeric for code-assignmentNumeric for code-assignment• 3 levels with 4 digits 3 levels with 4 digits andand # top level # top level

‘Sections’‘Sections’ > 10 > 10• Disadvantage:Disadvantage:

• A “correlation table” between 1A “correlation table” between 1stst and 2 and 2ndnd level is neededlevel is needed

• Manufacturing exceeds 10 GroupsManufacturing exceeds 10 Groups

Correlation, Section<Correlation, Section<––>Division>DivisionSection Divisions DescriptionA 01, 02 Agriculture, hunting and forestryB 05 FishingC 10-14 Mining and quarryingD 15-37 ManufacturingE 40,41 Electricity, gas and water supplyF 45 ConstructionG 50-52 Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goodsH 55 Hotels and restaurantsI 60-64 Transport, storage and communicationsJ 65-67 Financial intermediationK 70-74 Real estate, renting and business activitiesL 75 Public administration and defence; compulsory social securityM 80 EducationN 85 Health and social workO 90-93 Other community, social and personal service activitiesP 95 Activities of private households as employers and undifferentiated production activities of private householdsQ 99 Extra-territorial organizations and bodies

Overview AlternativesOverview Alternatives

Reflect everybody’s wishes would mean:Reflect everybody’s wishes would mean:• Pure Pure numericnumeric code ( code (6 digits), 6 digits), • add’l add’l top-toptop-top level ( level (6 digits), 6 digits), • ConstraintConstraint: 4 digits: 4 digits

1.1. Numerical, assuming 22 SectionsNumerical, assuming 22 Sections2.2. Letters for Sections, assuming 22 SectionsLetters for Sections, assuming 22 Sections3.3. Numbers for top level (4 levels, remove 1 level)Numbers for top level (4 levels, remove 1 level)4.4. Numbers for top level (5 levels, keep structure)Numbers for top level (5 levels, keep structure)5.5. Intermediate level for ManufacturingIntermediate level for Manufacturing

ISIC 4 structure, option 1aISIC 4 structure, option 1a

• Top structure with 22 sectionsTop structure with 22 sections• Purely numericalPurely numerical• 4 digits4 digits /3 levels /3 levels

Lowest level lost!Lowest level lost! Manufacturing not solved!Manufacturing not solved!

ISIC 4 structure, option 1aISIC 4 structure, option 1a01 Agriculture, hunting, fishing, forestry

011 Agriculture and related services0111 Crop production; market gardening; horticulture0112 Animal production0113 Mixed agriculture0115 Incidental services to agriculture

012 Fish farming0121 Open sea fish farming0122 Other fish farming

013 Fishing0131 Deep sea fishing0132 Costal and lagoon fishing0133 Lake and river fishing

014 Hunting and trapping0140 Hunting and trapping

015 Forestry and logging0151 Forestry0152 Logging0153 Incidental services to forestry and logging

02 Mining and quarrying

1st level

2nd level

3rd level

ISIC 4 structure, option 1bISIC 4 structure, option 1b

• Top structure with 22 sectionsTop structure with 22 sections• Purely numericalPurely numerical• 5 digits5 digits /4 levels /4 levels

Detail of ISIC 3.1 preservedDetail of ISIC 3.1 preserved Manufacturing not solved!Manufacturing not solved!

ISIC 4 structure, option 1bISIC 4 structure, option 1b01 Agriculture, hunting, fishing, forestry

011 Agriculture and related services0111 Crop production; market gardening; horticulture

01111 Growing of cereals and other crops n.e.c.01112 Growing of vegetables, horticultural

specialties and nursery products01113 Growing of fruit, nuts, beverage and spice

crops0112 Animal production

01121 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming

01129 Other animal farming; production of animal products n.e.c.

0113 Mixed agriculture01130 Mixed agriculture

0115 Incidental services to agriculture01150 Incidental services to agriculture

012 Fish farming…

02 Mining and quarrying

4th level, ISIC 3.1

ISIC 4 structure, option 1cISIC 4 structure, option 1c• Top structure with 22 sectionsTop structure with 22 sections• Purely numericalPurely numerical• Compressed structureCompressed structure with with• 4 digits /3 levels 4 digits /3 levels

Get rid of an intermediate level!Get rid of an intermediate level! Detail of ISIC 3.1 preservedDetail of ISIC 3.1 preserved Run into additional troublesRun into additional troubles Manufacturing not solved! Manufacturing not solved!

ISIC 4 structure, option 1cISIC 4 structure, option 1c01 Agriculture, hunting, fishing, forestry

011 Agriculture and related services0111 Growing of cereals and other crops n.e.c.0112 Growing of vegetables, horticultural

specialties and nursery products0113 Growing of fruit, nuts, beverage and spice

crops0114 Farming of cattle, sheep, goats, horses, asses,

mules and hinnies; dairy farming0115 Other animal farming; production of animal

products n.e.c.0116 Mixed agriculture0117 Incidental services to agriculture

012 Fish farming…

02 Mining and quarrying

1st level

2nd level4th level

ISIC 4 structure, option 2ISIC 4 structure, option 2

• Maintaining current ISIC coding structureMaintaining current ISIC coding structure• Top structure with 22 SectionsTop structure with 22 Sections• Top level “letter-coded”Top level “letter-coded”• 4 digits (3 numeric levels + 1 letter)4 digits (3 numeric levels + 1 letter)

Disadvantages remain unresolvedDisadvantages remain unresolved

ISIC 4 structure, option 2ISIC 4 structure, option 2A Agriculture, hunting, fishing, forestry

01 Agriculture and related services011 Crop production; market gardening; horticulture

0111 Growing of cereals and other crops n.e.c.0112 Growing of vegetables, horticultural

specialties and nursery products0113 Growing of fruit, nuts, beverage and spice

crops012 Animal production

0121 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming

0129 Other animal farming; production of animal products n.e.c.

013 Mixed agriculture0130 Mixed agriculture

015 Incidental services to agriculture0150 Incidental services to agriculture

…

B Mining and quarrying

1st level 2nd level

3rd level

4th level

ISIC 4 structure, option 3ISIC 4 structure, option 3

• Additional top-level (<10 categories)Additional top-level (<10 categories)• Purely numerical codePurely numerical code• CompressedCompressed structure structure• 4 levels/4 digits4 levels/4 digits

Get rid of an intermediate level!Get rid of an intermediate level!

Run into additional troublesRun into additional troubles

ISIC 4 structure, option 3ISIC 4 structure, option 31 Agriculture, hunting, fishing, forestry

10 Agriculture, hunting, fishing, forestry101 Agriculture and related services

1011 Growing of cereals and other crops n.e.c.1012 Growing of vegetables, horticultural

specialties and nursery products1013 Growing of fruit, nuts, beverage and spice

crops1014 Farming of cattle, sheep, goats, horses, asses,

mules and hinnies; dairy farming1015 Other animal farming; production of animal

products n.e.c.1016 Mixed agriculture1017 Incidental services to agriculture

102 Fish farming1021 Open sea fish farming1022 Other fish farming

…

2 Mining and quarrying

TOP-level 1st level

4th level

2nd level

ISIC 4 structure, option 4aISIC 4 structure, option 4a

• Additional top-level (<10 categories)Additional top-level (<10 categories)• 1 level “letter coded”1 level “letter coded”• 5 levels (4 digits+1 letter)5 levels (4 digits+1 letter)

Unattached “letter-code”-level (~status Unattached “letter-code”-level (~status quo)quo)

ISIC 4 structure, option 4aISIC 4 structure, option 4a0 Agriculture, hunting, fishing, forestry A Agriculture, hunting, fishing, forestry

01 Agriculture and related services011 Crop production; market gardening; horticulture

0111 Growing of cereals and other crops n.e.c.0112 Growing of vegetables, horticultural

specialties and nursery products0113 Growing of fruit, nuts, beverage and spice crops

012 Animal production0121 Farming of cattle, sheep, goats, horses, asses,

mules and hinnies; dairy farming0122 Other animal farming; production of animal

products n.e.c.013 Mixed agriculture

0130 Mixed agriculture014 Incidental services to agriculture

0140 Incidental services to agriculture…

1 Mining and quarrying B Mining and quarrying

1st level 2nd level

3rd level

4th levelTOP-level

ISIC 4 structure, option 4bISIC 4 structure, option 4b

• Additional top-level (<10 categories)Additional top-level (<10 categories)• Two levels are “letter coded”Two levels are “letter coded”• Can Can easilyeasily accommodate current ISIC accommodate current ISIC

structurestructure• 5 levels (3 digits+2 letters)5 levels (3 digits+2 letters)

Unattached “letter-code”-levelUnattached “letter-code”-level Same drawbacks as current systemSame drawbacks as current system

ISIC 4 structure, option 4bISIC 4 structure, option 4b0 Agriculture, hunting, fishing, forestry

A Agriculture, hunting, fishing, forestryAA Agriculture and related services

01 Crop production; market gardening; horticulture011 Growing of cereals and other crops n.e.c.012 Growing of vegetables, horticultural

specialties and nursery products013 Growing of fruit, nuts, beverage and spice

crops02 Animal production

021 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming

022 Other animal farming; production of animal products n.e.c.

03 Mixed agriculture030 Mixed agriculture

AB Fish farming…

1 Mining and quarryingB Mining and quarrying

1st level2nd level

3rd level

4th levelTOP-level

Special case: ManufacturingSpecial case: Manufacturing

• Option AOption A: split into 16 categories as : split into 16 categories as proposedproposed

Would require 2 digits on whatever Would require 2 digits on whatever levellevel

• Option BOption B: create intermediate level (~5 : create intermediate level (~5 groupings)groupings)

Manufacturing (1)Manufacturing (1)

Agriculture,etc.

Extra-Territorial

Manufacturing(16-Groups)

Top-level (22)

...

... ...

Food WoodFurnit

ure...

Agriculture,etc.

Extra-Territorial

Manufacturing(16-Groups)

Top-level(22+15)

...

... ...

Top-top-level(<=10)

“PrimaryProduction”

“Other PublicServices”

Food Metal ... Furniture

Manufacturing (2)Manufacturing (2)Manufacturing (2)Manufacturing (2)

Manufacturing (3)Manufacturing (3)

Agriculture,etc.

Extra-Territorial

Manufacturing(17-Groups)

Top-level(22+5)

...

... ...

Top-top-level(<=10)

“PrimaryProduction”

“Other PublicServices”

M1 M2 ... M6

Food TextileFurnit

ure

Manufacturing (4)Manufacturing (4)

• M1:M1: Manufacture of food products, beverages, tobaccoManufacture of food products, beverages, tobacco• M2:M2: Manufacture of textiles, wearing apparel, fur, Manufacture of textiles, wearing apparel, fur,

leather leather and related productsand related products• M3:M3: Manufacture of wood and wood productsManufacture of wood and wood products• M4:M4: Manufacture of petroleum products, chemicals, Manufacture of petroleum products, chemicals,

chemical products, plastics and rubberchemical products, plastics and rubber• M5:M5: Manufacture of metals, machines, transport and Manufacture of metals, machines, transport and

electric/electronic equipmentelectric/electronic equipment• M6:M6: Manufacture n.e.cManufacture n.e.c