Standard Industrial Classification on the LFS Sally-Anne Aubrey-Smith Sarju Mistry

Outline Background Coding tool Category changes Comparisons in coding framework Conclusion Any Questions?

Background to UK SIC 2007 Standard Industrial Classification system. A framework through which businesses or types of industry can be placed according to the types of economic activity in which they are engaged. Ensures a guaranteed level of uniformity and allows non-governmental organisations a way of placing similar groups of items into established structures.

Background to UK SIC 2007 The design process: National Statistical Institutes of all EU members The European Commission UK Government Departments The Bank of England Business and Trade Associations Now identical to NACE Rev. 2 as well as being identical to the 2 digit level on ISIC Rev. 4.

Background to UK SIC 2007 Illustration: UK SIC 2007 & NACE Rev.2 – 56.10 = Restaurants and mobile food activities. UK SIC – Additional sub-classes are added = 56.10/1, 56.10/2, 56.10/3. ISIC 3841B consists of: 3841 ship building and repairing 3842 manufacture of railroad equipment 3844 manufacture of motorcycles and bicycles 3845 manufacture of aircraft

Changes to the coding tool Introduction of the new coding tool with SIC2007 SIC1992 – Interviewers used a paper directory to look up codes. SIC2007 – An electronic system was created enabling users to select SIC codes from a look-up table. Ensures greater reliability

SIC 2007 Industry Coding Frame (Part 1)

SIC 2007 Industry Coding Frame (Part 2)

SIC92 & SIC 2007 – Category changes New sections – more service sector detail Section J - Information & communication Section L - Real estate activities Section M - Professional, scientific & technical services Section N – Administrative & support services Section R – Arts, entertainment & recreation Classification changes are detailed in Volume 5 of the LFS User Guides.

SIC92 & SIC 2007 – Category changes Class and sub-classes have also switched between categories in some cases. e.g Construction under SIC92 (45) has now been split into 3 divisions under SIC 2007 (41, 42, 43). Manufacture and repair under SIC92 (29) has now been split into 2 divisions under SIC 2007 (28, 33). Agricultural service activities under SIC 2007 were moved to Section N whereas under SIC92 were classed under Section A. Real estate services under SIC 2007 were moved to Section F whereas under SIC92 were classed under Section K.

IIntroduction of the new system LFS interviewers start coding to SIC 2007 in Jan 2009 using new coding tool in questionnaire New SIC 2007 industry variables specified Mapping & conversion variables (SIC 1992 to SIC 2007 & vice-versa) produced (2 digit) Backdata produced (3 years – 2008 – 2006) Syntax for production of further backdata

Strengths and limitations Revised framework ensures increased reliability in types of industry being analysed. Changes in categorisation need to be taken into account. Changes in classifications may be due either to the re-categorising of industries or the introduction of the new coding tool. Further analysis is being carried out

Conclusions The inception of the SIC07 framework combined with the new coding tool will enable researchers to carry out analysis at a more detailed level whilst retaining it’s reliability. The creation of SIC2007 means that the classification system is analogous to those employed by the EU and UN. Research into the impact of the new tool is ongoing and will be published in due course.

Questions? Any further questions?

Further Information Contact details: - Sally-Anne Aubrey-Smith sally-ann.aubrey-smith@ons.gsi.gov.uk Sarju Mistry sarju.mistry@ons.gsi.gov.uk