`
`- NORTH
`AMERICAN
`INDUSTRY
`CLASSIFICATION
`SYSTEM
`1
`
`United States, 1997
`
`
`
`

`

` 1
`
`______________________———-————————-—
`ForsalcbydnUSflovemthA-hfingofiice
`SwainmflfiltofWMfilSmp: SSOP,WashingunDC 204019323
`_Casebom¢'
`|SBN 0-16-049698-5
`ana'.
`ISBN 0-16-049699-3
`‘
`TfisedifimofmeoffidflNmfiAmcfimmdnsdalGnsdfimfimsmmwfliwlmmof
`RMcmfimmwwmmmemmmfiadWExmbu 1026 (p.2/48)
`
`__________
`
`

`

`Dedication
`
`The Office of Management and Budget (OMB) is indebted'to the many individuals and organiza—
`tions whose vision. insights, and energies have made NAICS United States a reality.
`
`This NAICS United States manual is dedicated to the memory of William C. Bennett, Jr., of
`the Bureau ofLabor Statistics who chaired the Business and Personal Services Subcommittee until
`his death.
`
`
`
`
`
`Monster Worldwide, Inc. Exhibit 1026 (p.3/48‘)
`
`

`

`Foreword
`
`The contents of this volume mark an important landmark in the history of the statistical offices
`that made its creation possible. The Instituto Nacional de Estadistica, Geografia e Informatics.
`(INEGI) of Mexico, Statistics Canada, and the United States Office of Management and Budget,
`through its Economic Classification Policy Committee, have jointly developed a system of classifi-
`cation of economic activities that will make the industrial statistics produced in the three countries
`comparable. The ’new North American Industry Classification System (NAICS) is scheduled to go
`into effect for reference year 1997 in Canada and the United States, and 1998 in Mexico. It was
`developed to provide a consistent framework for the collection, analysis and dissemination of
`industrial statistics used by government policy analysts, by academics and researchers, by the
`business community, and by the public.
`-
`
`Classifications serve as a lens through which to view the data they classify. NAICS is the first industry
`classification system that was developed in accordance with a single principle of aggregation, the
`principle that producing units that use similar production processes should be grouped together.
`NAICS also reflects, in a much more explicit way, the enormous changes in technology and in
`the growth and diversification of services that have marked recent decades. Though NAICS differs
`from other industry classification systems, statistics compiled on NAICS are comparable with
`statistics compiled according to the latest revision of the United Nations’ Inteman‘onal Standard
`Industrial Classification (ISIC, Revision 3) for some sixty high level groupings.
`
`The actual classification reveals only the tip of the work carried out by dedicated staff from INEGI,
`Statistics Canada, and US. statistical agencies. It is through their efforts, painstaking analysis, and
`spirit of accommodation that NAICS has emerged as a harmonized international classification of -
`economic activities.
`
`
`
`Ivan P. Fellegi
`
`Statistics Canada
`
`
`
`
`'ca, Geografia e
`Estadi
`Informatics, Mexico
`
`Management and Budget
`
`
`
`Monster Worldwide, Inc. Exhibit 1026 (p.4/48)
`
`

`

` Monster Worldwide, Inc. Exhibit 1026 (p.5/48)
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`

`

`Preface
`
`. Statistics Canada, Mexico’s Instituto Nacional de Estadistica, Geografia e Informatica (INEGI),
`-
`and the Economic Classification Policy Committee (ECPC) of the United States,-acting on behalf
`of the Office of Management and Budget, have created a common classification system to replace
`the existing classification of each country. the Standard Industrial Classification (l980) of Canada,
`the Mexican Classification of Activities and Products (1994), and the Standard Industrial Classifica-
`tion (1987) of the.United States.
`:_
`‘
`.
`-
`-
`.
`.
`The North American Industry Classification System (NAICS) is unique among industry classifi-.
`cations in that it is constructed wrthrn a single conceptual framework. Economic units that have
`similar production processes are classified in the same industry, and the. lines drawn betWeen
`industries demarcate, to the extent practicable, differences in production processes. This supply-
`based, or production-oriented. economic concept was adopted for NAICS because. an industry
`classification system is a framework for collecting and publishing information on-both inputs and
`outputs, for statistical uses that require that inputs and outputs be used together and be classified
`consistently. Examples of such uses include measuring productivity, unit labor costs, and the capital
`intensity of production,. estimating employment—output relationships, constructing input-output
`tables, and other uses that imply the analysis of production relationships'in the economy. The
`classification concept for NAICS will produce data that facilitate such analyses.
`.In the design of NAICS, attention was given to developing production-oriented classifications
`for (a) new and emerging industries, (b) service industries in general, and (c) industries engaged
`in the production of advanced technologies. These special-emphases,_are embodied in the particular
`features of NAICS, discussed below. These same areas of special emphasis accountfor many of
`the differences between the structureof NAICS and the structures of industry classification systems
`in use elsewhere. NAICS provides enhanced industry comparability among the three NAFTA
`trading partners, while also increasing compatibility with the two-digit level of the International
`Standard Industrial Classification (ISIC Rev.3) of the United Nations.
`A
`'
`..
`.
`NAlCS divides the economy into twenty sectors. Industries within these sectors are grouped
`according to the production criterion. Though the goods/services distinction is not explicitly reflected
`in the structure of NAICS, five sectors are largely goods-producing and fifteen are entirely services-
`producing industries.
`..
`-
`.
`.
`. --
`~
`-~ A new feature of NAICS is the creation of an Information sector that groups industries that
`primarily create anddisseminate a product subject to copyright. The NAICS Information sector
`brings together those activities that. transform information into a commodity that is produced and
`distributed, and activities that provide the means for distributing those products, other than through
`traditional wholesale-retail distribution channels..A few of the new and important industries in this
`sector include: software publishing; database and directory publishing; satellite telecommunications;
`paging, cellular and other wireless telecommunications; and on-line information and other informa-
`tion services. Also included in the Information sector are newspaper, book, and periodical publishing
`(formerly included in manufacturing); motion picture and sound recording industries; libraries; and
`other information services.
`Another feature of 'NAICS is a sector for Professional, Scientific and Technical Services, which
`comprises establishments engaged in activities where human capital is the major input. The industries
`within this sector are each defined by the expertise and training of the service provider. The
`sector includes such industries as offices of lawyers; engineering services; architectural services;
`advertising, agencies; and interior design services. Thirty-five NAICS industries comprise this
`sector, many of which are now recognized for the first time.
`A new sector for Arts, Entertainment and Recreation greatly expands the number of industries
`providing services in these three areas.
`
`’
`
`
`
`Monster Worldwide, Inc. Exhibit 1026 (p.6/48)
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`

`

` 4
`
`NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
`Another new sector, Health Care and Social Assistance, recognizes the merging ofthe boundaries
`of health care and social assistance. The industries in this new sector are arranged in an order that
`reflects the range and extent of health care and social assistance provided. Some new industries
`are family planning centers, out-patient mental health and substance abuse centers, and continuing
`into community care facilities fer the elderly.
`_
`In file ManufaCturing sector, an important new subSector, Computer and Electronic Product
`Mafitifhchning, brings together industries producingElectronic products andtheircomponents. The
`manufacture of computers, connmmications equipment, andsenneonductors, for example. are
`grbupedinto‘thesamesubsectorbecause01:theinhErenttechnological similaritiesoftheirproduction
`prOcesses meme likelihood that'theSe technolOgies will continue to converge in the rum. An
`important change is that reproduction of packaged software is placed in this sector, rather than in
`the services sector. because the reproduction of packaged software is a manufacturing process, and
`the productmovesthroughthe wholesale andretaildistribution systemsh’keanyother manufactured
`product." NAICS acknowledges the importance of these electronic industries, their rapid growth
`over the past several years and the likelihood that theSe industries‘will, in the future, become even
`more important in the economies of the three North American countries.
`This NAICS structure reflects the levels. at which data comparability Was agreed upon by the
`three statistical agencies. Theboundatiies of all the sectors of NAICS have been delineated. In
`most sectors, NAICS provides for compatibility at the industry (five—digit) level. However; for real
`estate; utilities; finance and insurance; and for threeofthe four subseCtors in other services (circept
`public administration), three-country com atlhifity will occur either ,at‘the industry group (four-
`digit) or subsector (three-digit) levels. For these sectors, differences‘in‘the economies of the three
`countries prevent full compatibility at the NAICS industry level. For retail trade, wholesale trade,
`construction, and public adnfiriistration, the three countries' statistical agencies have agreed, at this
`time, only on the 'bOundaries of the sector (two-digit level). Below the agreed'upon level of
`compatibility, each country may add additional detailed industries, as necessary to meet national
`needs, provided that this additional detail aggregates to the NAICS level.
`I
`’
`The hew classification will be adopted by Canada in their annual surveys of economic statistics
`for reference year 1997 and by Mexico and the United States in their economic censuses for
`reference years 1998 and 1997, respectively.
`
`Monster Worldwide, Inc. Exhibit 1026 (p.7/48)
`
`‘—
`
`

`

`AcknoWledgments
`
`‘
`
`The development ofthe North AmericanIndustry Classification System (NAICS) was an immense
`undertakingrequiring the time, energy, creativity, and cooperation ofnumerous people and organiza-
`tions throughout the three. countries; The work that has been accomplished is a testament to the
`individual and collective willingness of many persons and organizations both inside and outside
`government to contribute, to the development of NAICS..Within the United States, NAICS was
`developed under the guidance ofthe Office ofManagement and Budget by the Economic Classifica-
`tion Policy Committee:(£CPC). Membmeofthe «ECPC were Jack E. Triplett, (former Chair) and
`John R. Kort, Bureau of Economic Analysis, US. Department of Commerce; CharlesA. Waite
`(retired), Thomas L. Mesenhourg, and Carole Ad-A‘lflblel' (current Chair) Bureau of the Genius,
`US. Department of Commerce; Thomas J. Pleww (retimd), Brian McDonald-(retinas and
`George S. 'Wer-king, Bureau ofLabor Statisfics, US. Department of Labor; and ex officio. Paul
`Bugg, Office of Management and Budget.
`'
`‘
`-
`'
`.
`The ECPC established seven U.S. interagency subcommittees to work with their counterparts
`in Canada and Mexico to develop the structure of NAICS. Twenty US. government agencies
`provided staff for these subcommittees. Their contributions were invaluable. The agencies which
`generously made their staff available to support this process were as follows: Bureau of the
`Census; Bureau of Economic Analysis; Bureau of Labor Statistics; Bureau of Mines; Bureau of
`Transportation Statistics; Economic Research Service; Energy Information Administration; Federal
`Communications Commission; Federal Emergency Management Agency; Federal Reserve Board;
`Health Care Financing Administration; International Trade Administration; International Trade
`Commission; Internal Revenue Service; National Agricultural Statistics Service; National Forest
`Service; National Marine Fisheries Service; National Science Foundation; Social Security Adminis-
`tration; and US. Fish and Wildlife Service.
`The ECPC established two additional committees to coordinate the work of the NAICS Develop-
`ment Subcommittees and to implement ECPC recommendations following the development of the
`NAICS structure.
`
`NAICS Development Subcommittees:
`
`Agriculture, Forestry, and Fishing—Douglas G. Kleweno, Chair, National Agricultural Statis-
`tics Service
`.
`Construction—Frank A. Szumilo (retired), Chair, Bureau of Economic Analysis
`Manufacturing and Mining—Michael J. Zampogna, Chair, Bureau of the Census
`Distribution Networks—Dennis L. Shoemaker, Chair, Bureau of the Census
`Finance, Insurance, and Real Estate—Sidney 0. Marcus 1]], Chair, Bureau of the Census;
`Helen S. Tice, Co-Chair, Bureau of Economic Analysis
`Business and Personal Services—William C. Bennett, Jr., (deceased), Chair, Bureau of Labor
`Statistics; Jack B. Moody, Chair, Bureau of the Census
`Health, Social Assistance, and Public Administration—Mary Anne Phillips, Chair, Bureau of
`Labor Statistics
`
`The US. Coordinating Committee coordinated the US. effort internally and with Canada and
`Mexico. In addition to the Bureau of the Census, the Bureau of Economic Analysis, and the Bureau
`of Labor Statistics, membership included the Internal Revenue Service and the Social Security
`Administration. After the NAICS structure, hierarchy, and industries were established, the ECPC
`
`Monster Worldwide, Inc. Exhibit 1026 (p.8/48)
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`

` 6 f
`
`ormed an Administrative Subcommittee from the Coordinating Committee and added arepresenta-
`tive fromtheBureauofTmnsportatimStan'stics.TheAdministrative Subcommittee wasresponsible
`for implementing the ECPC’s recommendations and completing and preparing the manual and
`other materials.
`
`Coordinating Committee/Amati“ Subcommittee:
`Car-oleA. Ambler (Coordinating Committee Chair),WilllamG. Beetle, Jr.,
`(Administrative SubcomnnneeChslr), mdBmMGouhMBmeauoftheCensus
`Ned G. Howenstine, Frank A. Smile (retired). mi Paula-C: Young, Bureau of Economin
`. Analysis
`-
`'
`‘
`WilliamC.Bennett,Jr.,(decemed),BrianMacDonald(retired), andJohnB.Murphy,Bureau
`of Labor Statistics
`.
`Susanafiostetterfietired),DavidEJordamandLamKMIntemalRevenue Service
`Linda M. Dill, Social Security Administration. -
`--DanaM.-Larldn;U.S DepamnentofTransportation-Volpe Centenrepresenting the Bureeuof
`Transportation Statistics
`-
`.
`x
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`,
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`Monster Worldwide, Inc. Exhibit 1026 (p.9l48)
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`_
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`”-
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`

`

`7 .
`
`Contents
`
`‘
`
`Page
`.
`1
`Foreword ..................................................................................................................................
`3
`Preface......_.............................................................
`...........................
`10
`Explanation of Symbols
`
`11
`~
`Introduction ..................................................
`
`26
`NAICS United States Structure"..........................................................................................
`27
`Frequently Asked Questions About Economic Classifications ..............................................
`29
`Directory of Selected Federal Government Agencies ............................................................
`35
`Part I. Titles and Descriptions of Industries...................;.......................................................
`37
`Sector 11. Agriculture, Forestry. Fishing and Hunting .............................................
`
`37
`Subsector 111. Crop Production...............................................
`
`51
`subsector 112. Animal Production .........
`58
`Subsector 113. Forestry and Logging.......................................................
`59
`Subsector 114. Fishing, Hunting and Trapping........................................
`61
`Subsector 115. Support Activities for Agriculture and Forestry .............
`
`67
`...............................................
`Sector 21. Mining
`67
`Subsector 211. Oil and Gas ExtractiOn ....................................
`69
`Subsector 212. Mining (except Oil and Gas) ........................................
`80
`Subsector 213. Support Activities for Mining.........................................
`85
`Sector 22. Utilities
`......................................
`85
`Subsector 221. Utilities
`...................................................
`89
`Sector 23. Construction........................................'.......................................................
`89
`Subsector 233. Building, Developing, and General Contracting .............
`Subsector 234. Heavy Construction 92
`Subsector 235. Special Trade Contractors ................................................
`96
`Sector 31-33. Manufacturing.....................................................................................
`105
`Subsector 311. Food Manufacturing .........................................................
`106
`Subsector 312. Beverage and Tobacco Product Manufacturing ..............
`135
`Subsector 313. Textile Mills ..........................
`........................................
`139
`Subsector 314. Textile Product Mills ......................-.................................
`144
`Subsector 315. Apparel Manufacturing ....................................................
`148
`Subsector 316 Leather and Allied Product Manufacturing.....................
`164
`Subsector 321. Wood Product Manufacturing .........................................
`169
`Subsector 322. Paper Manufacturing ........................................................
`177
`Subsector 323. Printing and Related Support Activities..........................
`188
`Subsector 324. Petroleum and Coal Products Manufacturing .................
`194
`Subsector 325. Chemical Manufacturing..................................................
`197
`Subsector 326. Plastics and Rubber Products Manufacturing .................
`216
`Subsector 327. Nonrnetallic Mineral Product Manufacturing .................
`226
`Subsector 331. Primary Metal Manufacturing .........................................
`238
`Subsector 332. Fabricated Metal Product Manufacturing........................
`252
`Subsector 333. Machinery Manufacturing...............................................
`276
`Subsector 334. Computer and Electronic Product Manufacturing ..........
`304
`Subsector 335. Electrical Equipment, Appliance, and Component
`Manufacturing ..................................................................
`Subsector 336. Transportation Equipment Manufacturing.......................
`Subsector 337. Furniture and Related ProductManufacturing................
`Subsector 339. Miscellaneous Manufacturing ..........................................
`Sector 42. Wholesale Trade........................................................................................
`Subsector 421. Wholesale Trade, Durable Goods“-..................................
`Subsector 422. Wholesale Trade, Nondurable Goods..............................
`
`320
`334 -
`354
`361
`375
`375
`394
`
`r
`
`.5;
`i:
`L
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`~.
`Eff
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`8
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`NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
`
`424
`427
`431
`434
`436
`441
`445
`448
`454
`459
`459
`464
`466
`468
`472
`478
`480
`482
`489
`490
`492
`495
`496
`502
`508
`513
`517
`518
`519
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`Part I. Titles and Descriptions of Industries—Con.
`411
`Sector 4445. Retail Trade...............................................'..........................
`Subsector 441. Motor Vehicle and Parts Dealers ...........
`‘ 412
`Subsector 442. Furniture and Home Furnishings Stores
`417
`Subsector 443. Electronics and Appliance Stores ....................................
`420
`Subsector 444. Building Material and Garden Equipment and
`Supplies Dealers...............................................................
`
`Subsectot 445. Food and Beverage Stores ...................................
`
`
`...................
`Suhsector 446. Health and Personal Care Stores
`
`Subsector 447. Gasoline Stations........~.-..............................~..
`Subsector 448. Clothing and Clothing Accessories Stores ......................
`Subwctor 451. Sporting Goods, Hobby, Book. and Music Stores..........
`Subsector 452. General Merchandise Stores
`.............
`
`Subsector 453. Miscellaneous Store Retailers ...............................
`
`...........
`Subsector 454. NonStore Retailers.......................
`
`...................
`Sector 48-49. Transportation and Warehousing.
`
`'......................................
`Subsector 481. Air Transportation....
`
`Subsector 482. Rail Transportation............................................
`
`.......
`Subsector 483. Water Transportation ......
`
`Subsector 484. Truck Transportation.............................................
`
`Subsector 485. Transit and Ground Passenger Transportation.....
`
`Subsector 486. Pipeline Transportation .............................................
`
`Subsector 487. Scenic and Sightseeing Transportation ................
`
`Subsector 488. Support Activities for Transportation...................
`
`Subsector 491. Postal Service ............................................
`
`........
`Subsector 492. Couriers and Messengers ...........
`
`Subsector 493. Warehousing and Storage ..............
`.
`....................
`
`Sector 51. Informan'on ..................................................
`................
`Subsector 511. Publishing Industries .................................................
`
`.....
`Subsector 512. Motion Picture and Sound Recording Industries
`Suhsector 513. Broadcasting and Teleconununications...........................
`Subsector 514. Information Services and Data Processing Services.......
`Sector 52. Finance and Insurance...............................................................................
`Subsector 521. Monetary Authorities—Central Bank ............................
`Subsector 522. Credit Intermediation and Related Activities ..................
`Subsector 523. Securities, Commodity Contracts, and Other
`Financial Investments and Related Activities .................
`Subsector 524. Insurance Carriers and Related Activities ................
`
`Subsecto‘r 525. Funds, Trusts, and Other Financial Vehicles ...........
`
`Sector 53. Real Estate and Rental and Leasing..................................................
`
`Subsector 531. Real Estate.........................................................
`Subsector 532. Rental and Leasing Services.......
`Subsector 533. Lessors of Nonfinancial Intangible Assets (except
`.
`Copyrighted Works) .........................................................
`Sector 54. Professional, Scientific, and Technical Services ....................................
`Subsector 541. Professional, Scientific, and Technical Services .............
`Sector 55. Management of Companies and Enterprises........................................
`Subsector 551. Management of Companies and Enterprises...................
`
`Sector 56. Administrative and Support and Waste Management an
`Remediation Services .....................................................-.
`Subsector 561. Administrative and Support Services ............................
`Subsector 562. Waste Management and Remediation Services ..............
`Sector 61. Educational Services
`.................................................................
`
`Subsectnr 611. Educational Services .............................
`
`526
`532
`_ 537
`543
`543
`547
`
`556
`559
`559
`587
`587
`
`591 -
`591
`611
`619
`619
`
`\-
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`

`CONTENTS
`
`9
`
`629
`629
`642
`644
`648
`655
`
`655
`664
`665
`673
`673
`677
`685
`685
`696
`
`705
`713
`715
`
`Part I. Titles and Descriptions of Industries—Con.
`Sector 62. Health Care and Social Assistance ...........................................................
`SubSector 621. Ambulatory Health Care Services ...................................
`Subsector 622. Hospitals .................................................
`Subsector 623. Nursing and Residential Care Facilities ..........................
`Subsector 624. Social Assistance..............................................................
`Sector 71. Arts. Entertainment, and Recreation.........................................................
`Subsector 711. Performing Arts, Spectator Sports, and Related
`Industries .........................................................a...............
`Subsector 712. Museums, Historical Sites, and Similar Institutions .......
`Subsector 713. Amusement, Gambling, and Recreation Industries .........
`Sector 72. Accommodation and Food Services .........................................................
`Subsector 721. Accommodation ................................................................
`
`Subsector 722. Food Services and Drinking Places......
`Sector 81 Other Services (except Public Administration) ........................................
`Subsector 811. Repair and Maintenance ..................................................
`Subsector 812. Personal and Laundry Services .......................................
`Subsector 813. Religious, Grantmaking, Civic, Professional, and
`Similar Organizations.......................................................
`Subsector 814. Private Households..............................
`Sector 92. Public Administration .............................................................................
`Subsector 921. Executive, Legislative, and Other General
`Government Support ........................................................
`Subsector 922. Justice, Public Order, and Safety Activities ...................
`Subsector 923. Administration of Human Resource Programs ...............
`Subsector 9%. Administration of Environmental Quality Programs ......
`Subsector 925. Administration of Housing Programs, Urban
`725
`Planning, and Community Development ........................
`726
`Subsector 926. Administration of Economic Programs ...........................
`729
`Subsector 927. Space Research and Technology ............................
`
`730
`Subsector 928. National Security and International Affairs ...............
`733
`Part II. NumericalList of Short Titles ....................................................................................
`Abbreviations and SubstituteWords 765
`Part III. Appendixes.................................................................................................................
`767
`A. 1997 NAICS United States Structure, Including Relationship
`to 1987 United States SIC ...................................................................
`B. 1987 United States SIC Matched to 1997 United States NAICS
`Part IV. Alphabetic Index........................................................................................................
`
`715
`718
`721
`724
`
`769
`911
`1011
`
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`Monster Worldwide, Inc. Exhibit 1026 (p.12/48)‘
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`10
`
`NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
`
`EXPLANATION OF SYMBOLS
`NAICS usersmay obtain currentinformation abouttheplacement ofnew types ofbusiness activities
`within the 1997 NAICS structure, the directory of Federal Government agencies that use NAICS
`for statistical andnonstatisticalpurposes, andFrequentlyAskedQuestionsbyaccessingtheNational
`Technical Information Service’s NAICS web address (http://wwwmflsgovlmics) found at the
`bottom of each page.
`
`In Part I, Titles and Descriptions
`
`gm
`“5
`0“
`[Blank]
`
`.
`Exp}.anation
`.-
`United States industry onl
`.
`United States and Canadian industries are comparable.
`[No superscript symbol] Canadian, Mexican, and United States indusn‘ies are
`comparable.
`
`In Appendix A
`
`Smbol
`us
`can
`[Blank]
`
`Explanation
`United States industry only.
`United States and Canadian industries are comparable.
`Canadian. Mexican. and United States industries are comparable.
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`Monster Worldwide, Inc. Exhibit 1026 (p.13/48)
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`

`11
`
`Introduction-
`
`Background
`
`In 1937, the Central Statistical Board established an Interdepartmental Committee on Industrial
`Classification “to develop a plan of classification of various types of statistical data by industries
`and to promote the general adoption of such classification as the standard classification of the
`Federal Government.” The List of Industries for manufacturing was first available in 1938, with
`the List of Industries for nonmanufacturing following in 1939. These Lists of Industries became
`the first Standard Industrial Classification-(SIC) for the United States.
`'
`.
`The SIC was developed for use in the classification of establishments by typeof activity in
`whichthey are primarily engaged; for purposes offacilitating the collection, tabulation, presentation,
`and analysis of data relating to establishments; and for promoting uniformity and comparability
`in the-presentation of statistical data collected by various agencies of the United States Government,
`State agencies, trade associations, and private research organizations. The SIC covered the entire
`field of economic activities by defining industries in accordance with the composition and structure
`of the economy.
`-
`.
`Since the inception of the SIC in the 19303, the system has been periodically revised to reflect
`theeconomy’s changing industrial composition and organization. The last revision of the SIC was
`in 1987.
`Rapid changes in both the US. and world economies brought the SIC under increasing criticism.
`In 1991, an International Conference on, the Classification of Economic Activities was convened
`in Williamsburg, Virginia, to provide a forum for responding to such criticism and to explore new
`approaches to classifyingeconomic activity; In-July 1992, the Office of Management and Budget
`(OMB) established the Economic Classification Policy Committee (ECPC) and charged it with a
`“fresh slate” examination of economic classifications for statistical purposes. The ECPC prepared
`a number of issue papers regarding classification, consulted with outside users, and ultimately
`joined with Mexico’s Instituto Nacional de Estadistica; Geografia e Informatica (LNEGI) and
`Statistics Canada to develop the North American Industry Classification System (NAICS), which
`replaces the-1987 U.S.= SIC and the classification systems of Canada (1980 SIC) and Mexico (1994
`Mexican Classification of Activities and Products (CMAP)).
`
`Purpose ofNAICS
`
`NAICS is an. industry classification system that groups establishments into industries based on
`the activities in which they are primarily engaged. It is a comprehensive system covering the entire
`field of economic activities,- producing and nonproducing. There are 20 sectors in NAICS and
`1,170 industries in NAICS United States.
`NAICS was developed by Mexico’s INEGI, Statistics Canada, and the U.S. ECPC (the latter
`acting on behalf of OMB) to provide common industry definitions for Canada, Mexico, and the
`United States that will facilitate economic analyses of the economies of the three North American
`countries. The statistical agencies in the three countries produce information on inputs and outputs.
`
` '
`
`'Pearce, Esther, History ofthe Standard Industrial Classification, Executive Office of the President, Office of Statistical
`Standards, US. Bureau of the Budget. Washington, DC. July 1957 (mimeograph).
`
`
`
`Monster Worldwide, Inc. Exhibit 1026 (p.14/48)
`
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`12
`NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
`industrial performance, productivity, unit labor costs, and employment. NAICS, which is based on
`a production—oriented concept, ensures maximum usefulness of industrial statistics for these and
`similar purposes.
`'
`‘
`-
`NAICS United States will be used by U.S. statistical agencies to: facilitate the collection,
`tabulation, presentation, and analysis of data relating to establishments, and to provide uniformity
`and comparability in the presentation of statistical data describing the U.S. economy. NAICS
`United States is designed for statistical purposes. Although the classification also may be used for
`various administrative, regulatory and taxation purposes, the reguirements of government agencies
`that use 'it for nonstatistical purposes played no role in its development.
`
`Development of NAICS
`The U.S. ECPC established by OMB in 1992 was chaired by the Bureau of Economic Analysis,
`U.S. DepartmentofCommerce,withrepresentativesfromtheBureauoftheCensus,U.S. Department
`of Commerce, and the Bureau ofLabor Statistics, U.S. Department ofLabor. The ECPC was asked
`to examine economic classifications for statistical purposes and to determine the desirability- of
`developing a new industry classification system for the United States based on a single economic
`concept. On March 31,1993, OMB published a Federal Register Notice (58FR16990-l7004)
`announbing the intention to revise the SIC for 1997, the establishment ofthe ECPC, and the process
`for