North American Industry Classification System Recommendations Accepted by OMB
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Through a Federal Register Notice, the Office of Management and Budget (OMB) sought public comment on adopting the proposed North American Industry Classification System (NAICS) updates for 2022, as recommended by the Economic Classification Policy Committee (ECPC). OMB published a December 21 Federal Register Notice, accepting the recommendations of the ECPC.
OMB had published a notification of its intentions to revise portions of the NAICS in a prior February 26, 2020 Federal Register Notice. That notice solicited comments on the advisability of revising the NAICS 2017 coding structure for the new 2022 version, including.to:
- Identify new and emerging industries, and
- Solicit comments on the NAICS coding for Electronic Shopping in the Retail Trade.
Recommendations Accepted by OMB
The ECPC is comprised of representatives of the Bureau of Economic Analysis (BEA) , Bureau of Labor Statistics (BLS), U.S. Census Bureau, and other government agencies. The ECPC recommended an update of the industry classification system to:
- clarify existing industry definitions and content,
- recognize new and emerging industries,
- combine industries, and
- correct errors and omissions.
In large part, the series of revisions for NAICS are designed to address decreasing usefulness of employing the mode of delivery (online versus in store/print) as an industry delineation criterion in the Wholesale Trade, Retail Trade, and Information sectors. In short, the internet has developed from a specialized activity to a generic method of delivery for goods and services.
Therefore, the 2022 revisions to NAICS reflect a deemphasis on the delivery method as an industry function used in NAICS classification. In addition, OMB has accepted the ECPC recommendations with respect to bio-based products manufacturing and renewable chemicals manufacturing topic areas, including the decision to continue research and outreach in this important emerging area beginning on or after January 1, 2022.
Federal statistical establishment data published for reference years beginning on or after January 1, 2022, should be published using the 2022 NAICS United States codes. Publication of NAICS United States, 2022 Manual is planned for January 2022 on the NAICS website.
The Usage of NAICS in Labor Statistics
The Bureau of Labor Statistics (BLS) has the statutory responsibility of collecting and publishing monthly information on employment, the average wage received, and the hours worked by area and industry. In collecting data, BLS uses the NAICS as a taxonomy or coding system to categorize business into various industry sectors. The BLS Federal Register Notice (FRN) for soliciting proposed changes and comments for the NAICS 2022 update was published here.
RESOURCES
For additional information on NAICS, please refer to the following.
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- Posted by: Damon Jones
- Posted in: LMI Central