Introduction

This document describes the results from a consultation initiated in August 2023 concerning proposals for changes to the North American Industry Classification System (NAICS) Canada. The revised classification will be NAICS Canada 2027 Version 1.0. Statistics Canada invited data producers and data users, representatives of business associations, government bodies at the federal, provincial and local levels, academics and researchers and all other interested parties to submit proposals for the revision to NAICS Canada.

The revisions for which proposals were sought may include any element of the classifications including the structure of the classification, wording of definitions, and examples and exclusions attached to classes. The input of business, government, academia and private citizens in updating NAICS Canada is valued so that updates meet the needs of users, while still respecting statistical classification principles and guidelines.

NAICS Canada is Statistics Canada's primary classification for industries and is widely used throughout business programs at Statistics Canada, in academia and business. Effective December 15, 2023, NAICS Canada became the data reference standard on industry classification for the government of Canada. Statistics Canada updates NAICS Canada on a 5-year revision cycle. The next revision to this classification is scheduled to be released in January 2027.

The consultation was conducted electronically through public announcements that described the upcoming NAICS Canada revisions, listed the types of inputs sought, provided a timeline for the consultation and gave contact information for users to make submissions and contact Statistics Canada with questions and comments. The announcements were disseminated through the Statistics Canada's website (Consulting Canadians and Standards, Data Sources and Methods pages), and Facebook, LinkedIn, Twitter, and Reddit, as well as GCXchange.

In addition to soliciting proposals from external users and stakeholders outside of Statistics Canada, one of the key parts of the consultation on the revision of NAICS Canada is the on-going interactions within the Agency. The Centre for Statistical Standards and Geomatics consulted numerous statistical programs, the Business Register and the System of National Accounts during the consultation and revision process.

This report summarizes the feedback received from the consultation. The consultation process and period are described below.

Background

NAICS was released for the first time in 1997, with NAICS 1997. This classification was developed through the cooperation of Statistics Canada, Mexico's Instituto Nacional de Estadistica y Geografia (INEGI) and the Economic Classification Policy Committee (ECPC) of the United States. Each country maintains its own version of NAICS (NAICS Canada, NAICS U.S., and NAICS Mexico). The three country versions are generally the same with some differences found primarily in wholesale trade, retail trade and government, and at the 6-digit national industry level.

NAICS replaced the existing industry classification system used in Canada, which was the Standard Industrial Classification (SIC). Since then, NAICS Canada, U.S. and Mexico have been revised on a 5-year cycle in 2002, 2007, 2012, 2017 and 2022. The three NAICS partner agencies meet regularly to discuss possible changes to the common NAICS structure.

Statistics Canada has adopted a permanent consultation process with regards to NAICS Canada, which means proposals for changes to the classification may be submitted and reviewed on an ongoing basis. A cut-off date for considering proposed changes to be included into a new version of NAICS Canada has been instituted. This is why, for example, for NAICS Canada 2027, the deadline to submit proposal for changes to be included was set to the end of June 2025.

NAICS Classification Structure

NAICS has a 6-digit, 5-level classification structure, consisting of 2-digit sectors, 3-digit sub-sectors, 4-digit industry groups, 5-digit industries and 6-digit national industries. Changes were invited for any level, but changes to the 2-digit to 5-digit levels will be subject to trilateral negotiation and approval. Changes to the 6-digit national industry level are at the discretion of each trilateral partner (i.e., Statistics Canada makes the final decision about changes to 6-digit industries in NAICS Canada).

North American Industry Classification System (NAICS) Canada 2022 Version 1.0 is the latest version of the classification for the participants of this consultation were to base their input on.

What We Asked

The purpose of the consultation was to solicit comments from data producers and users, representatives of business associations, government bodies at the federal, provincial and local levels, academics and researchers and all other interested parties to submit proposals for the revision to NAICS Canada. The revised version will be called NAICS Canada 2027 Version 1.0. User input is highly valued by Statistics Canada in updating NAICS Canada so that it continues to meet user needs. See: Invitation to participate in the revision of the North American Industry Classification System (NAICS) Canada

We sought proposals for changes for two main reasons:

• collect input from data producers and users as an integral part of the NAICS revision process, and
• ensure users' needs continue to be met, therefore the classification remains relevant.

The type of feedback requested included any proposed changes to NAICS Canada and how they classify industries. These might be changes to the structure of the classification (i.e. addition of classes or deletion of classes), changes to the wording of definitions, and changes to examples, inclusion and exclusions.

Interested parties were invited to submit written proposals to Statistics Canada. The official public consultation period started in October 2023 and closed at the end of June 2025.

Statistics Canada received responses by e-mail. These responses consisted of written descriptions of the desired changed to NAICS Canada for 2022, including structures, definitions, examples, inclusions, and exclusions.

What We Heard

Staff from the Centre for Statistical Standards and Geomatics (formerly Centre for Statistical and Data Standards) at Statistics Canada managed the responses to the public consultation announcement. These responses were all received by e-mail.

For NAICS Canada 2027, in response to this invitation, we received proposals related to the following:

• We received a large proposal to review all industries in the Finance and insurance sector (NAICS 52). The proposal recommended updates to NAICS to align with the 2025 System of National Accounts (SNA). This proposal sought to improve international comparability with regards to the International Standard Industrial Classification of All Economic Activities (ISIC) Rev. 5 and the System of National Accounts 2025 manual. The suggested changes were related to the introduction of new industry groups and refining and restructuring the existing ones.
  In summary, the proposal included the creation of new categories for Other Financial Intermediaries, Financial Auxiliaries, Captive Financial Institutions, and detailed classifications for investment funds, including open-ended, closed-ended, and hedge funds. Existing groups such as Depository and Non-Depository Credit Intermediation were proposed to be adjusted to reflect changes in these types of activities, including the addition of financial leasing and payday lenders. Money Market Funds were proposed to be divided into constant and variable net asset value funds, while Pension Funds would separate defined benefit and defined contribution plans.
• Another large proposal was received regarding many diverse industries and activities in the classification. Part of the proposal related to adding industries that were felt to be missing as this would help with policy and reporting requirements. Other inclusions in the proposal were related to adding examples to clarify where certain activities belong. These included drones, data centres and Montessori schools, among others. The industries that were listed as missing within the classification included energy related activities (including renewable energy activities), social media influencers and different types of investment funds, among others. This proposal also suggested the discontinuation of the asbestos mining as an industry in NAICS as it is no longer a productive activity in Canada.
• Another proposal that was received related to the restructuring of NAICS Sector 54 - Professional, scientific and technical services. This document suggested that having all the diverse activities included in this sector in one single 3-digit sub-sector was inefficient for data creation, reporting and analysis. According to the proposal, since this is a large, diverse and rapidly growing sector, distinguishing between the different scientific fields and technical services at this higher level would help to disaggregate the data for the many surveys and products that use this sector breakdown.
• Another proposal suggested changes to the terminology used when describing activities related to animals and the manufacture of products derived from animals. This proposal asked that we use more sensitive language in titles and descriptions related to these activities.
• The final proposal to be mentioned in this report suggested changes to three broad areas of the classification, these included nurseries and landscaping services, transportation and biomethane and hydrogen production. The recommendations made in the proposal were based on reporting requirements for provincial policies and regulations related to these industries.

Overall, we have received approximately 100 requests for changes to NAICS generated internally or in consultation with our American and Mexican partners. These included structural changes to NAICS governing electric vehicle and electric vehicle battery production, lithium mining, as well as numerous non-structural changes affecting definitions, examples, inclusions, and exclusions in a large number of NAICS classes. Examples of these non-structural proposals for NAICS changes include the addition of a large number of new examples to more clearly document the classification of emerging activities related to the bioeconomy, the addition of new examples to clarify the treatment of cryptocurrency related activities, numerous updates to the translation of existing terms, and the creation or revision of examples to cover a broad array of other topics, such as child care and cloud seeding. Many of these changes, even if quite minor in effect, require extensive research and analysis to confirm the proper language to be used and the proper placement of activities in the classification.

What We Did

Following receipt of proposals for changes we investigated the changes with respect to the criteria set out for evaluating changes, which included the rationale for the proposed changes, the empirical significance (i.e. revenue, expenses, value-added, employment) of any new industries, consistency with classification principles (e.g. mutual exclusivity, exhaustiveness, and homogeneity within categories), and relevance to present analytical interest and data. We consulted with our subject matter experts and the system of national accounts on the changes. During the revision process we had regular meetings with our American and Mexican counterparts on changes that affect the trilateral (i.e. shared by the three countries) classes of NAICS. We shared information on the changes we were investigating and negotiated changes that would respect the trilateral nature of NAICS. In addition, we followed and explored updates to other industrial classifications, the International Standard Industrial Classification of All Economic Activities (ISIC) Rev. 5 in particular, to learn how those changes might help inform the changes that we are making. Revision for ISIC Rev. 5 affected, among other areas, intermediation service activities, cryptocurrency related activities, electricity generation and storage and telecommunications.

Next steps

The task team is currently reviewing all proposals in accordance with the statistical classification principles, the underlying concepts, and the classification criteria for NAICS, as outlined in the Appendix of this report. Following this review, Statistics Canada will issue a public notice in spring 2026 outlining the final approved proposals for inclusion in NAICS 2027 V1.0, with the public release of NAICS 2027 V1.0 scheduled for January 2027.

Appendix : Governing principles and underlying concepts and criteria

Statistical classification principles

Principle 1: Follow internationally accepted practices and principles on how to classify industries and their statistical units (e.g., establishment, enterprise) (also see Introduction to the North American Industry Classification System (NAICS) Canada 2022 Version 1.0). Because the purpose of NAICS is primarily to provide a framework to support consistent statistical information on Canadian economic activities, it is important to specify the scope of each category in the classification. Principle 1 supports the production and dissemination of consistent and sound statistics. The NAICS team and the Trilateral steering committee on NAICS use this information to evaluate whether proposed changes are properly placed in the classification structure.

Principle 2: Respect of the internationally recognized principles of well-described statistical classifications, being:

• well defined universe: categories at each level of the classification structure must reflect a well-defined universe or scope;
• classification is exhaustive: it covers all possible elements in the universe even if all examples of such universe are not provided in the publication;
• categories are mutually exclusive: no overlapping in the scope of each classification item or category (to avoid double counting);
• classification structure is hierarchical: lower categories are dependent of their higher categories;
• classification structure is rectangular: the classification has a code represented at every level across its whole structure, regardless of the scope of each category;
• classification is comparable to other classifications (of the same domain);
• classification categories are empirically significant;
• classification is organized around one or few concepts (e.g., industry, economic activity);
• classification contains groupings meaningful to users;
• classification is widely adopted.

Principle 3: The classification is related to data that is collectible and publishable (collectability and reportability): whether data can be collected and reported on the industry class . For a detailed industry to be included in NAICS and expecting statistics to come out of it, Statistics Canada must be able to collect and report data, otherwise, categories will not provide opportunities to produce relevant statistics. Statistics Canada is responsible for producing data across a broad range of industries in Canada and conducts comprehensive surveys that collect industry and labour market data.

Principle 4: The classification supports the maintenance of time series continuity to the extent possible; that is, the ability to maintain data series over time without interruption due to classification changes. To the extent possible, new industry classes proposed for the current version of NAICS and beyond should be easily linked by appropriate correspondence to previous version the NAICS (e.g., NAICS 2022 to NAICS 2017 and NAICS 2017 to NAICS 2012).

Guidelines developed by Statistics Canada provided for the launch of the permanent consultation process for NAICS will assist users and the NAICS team and working groups in consistently making changes to NAICS.

Principle 5: The classification continues to be relevant, that is, it must be of analytical interest, result in data useful to users, and be based on appropriate statistical research, subject-matter expertise and administrative relevance aligned with statistical classification principles and needs.

Principle 6: The prevalence of classification principles and statistical needs: NAICS is designed primarily for statistical purposes. Although there can be various uses of NAICS for non-statistical purposes (e.g., for administrative, regulatory, or policy functions), the requirements of government agencies or private users that choose to use NAICS for non-statistical purposes are responsible for such use of the classification. As a result, the NAICS team reviews comments and develops its recommendations based on established statistical classification principles and guidelines. Making changes for strictly administrative rather than classification purposes is not supported. Similarly, the volume of comments does not determine what the recommendations will be, and just submitting a request for a change does not automatically result into a change in NAICS.

Underlying Concepts and Classification Criteria of the NAICS

Establishment-based classification

NAICS is designed for the compilation of production statistics and, therefore, for the classification of data relating to establishments. It takes into account the specialization of activities generally found at the level of the producing units of businesses. The criteria used to group establishments into industries in NAICS are similarity of input structures, labour skills and production processes.

NAICS can also be used for classifying companies and enterprises. However, when NAICS is used in this way, the following caveat applies: NAICS has not been specially designed to take account of the wide range of vertically- or horizontally-integrated activities of large and complex, multi-establishment companies and enterprises. Hence, there will be a few large and complex companies and enterprises whose activities may be spread over the different sectors of NAICS, in such a way that classifying them to one sector will misrepresent the range of their activities. However, in general, a larger proportion of the activities of each complex company and enterprise is more likely to fall within the sector, subsector and industry group levels of the classification than within the industry levels. Hence, the higher levels of the classification are more suitable for the classification of companies and enterprises than are the lower levels. It should also be kept in mind that when businesses are composed of establishments belonging to different NAICS industries, their company- and enterprise-level data will show a different industrial distribution, when classified to NAICS, than will their establishment-level data, and the data will not be directly comparable.

While NAICS is designed for the classification of units engaged in market and non-market production, as defined by the System of National Accounts, it can also be used to classify own-account production, such as the unpaid work of households.

Unit of observation

The unit of observation of the industrial classification is the producing unit or establishment, and the industrial classification groups producing units, not products. Groupings of producing units permit the collection of data on inputs and outputs on a comparable basis. Because establishments each produce a number of products in different combinations and using different technologies, it is hardly possible to group all the establishments producing a particular product. It is more useful to use a production-oriented approach to bring together, into industries, establishments with common input structures, and to compile data on their outputs. This permits the compilation of comprehensive data on the total output of each product by industry and across all industries.

Statistical purposes

NAICS has been designed for statistical purposes. Government departments and agencies and other users that use it for administrative, legislative and other non-statistical purposes take responsibility for applying the classification in this manner.

NAICS is based on a production-oriented, or supply-based conceptual framework in that establishments are grouped into industries according to similarity in the production processes used to produce goods and services. The production process refers to the combination of inputs used in producing a certain quantity of outputs. A production-oriented industry classification system ensures that statistical agencies in the three countries can produce information on inputs and outputs, industrial performance, productivity, unit labour costs, employment, and other statistics that reflect structural changes occurring in the three economies.

Producing units are grouped into industries according to similarities in their production processes as defined earlier. The boundaries between industries demarcate, in principle, differences in input structures and production technologies. This means that, in the language of economics, producing units within an industry have similar production functions that differ from those of producing units in other industries.

1. What is the main purpose of the Census of Population?

1. To track people's spending habits
2. To count the number of tourists in Canada
3. To collect information about Canada's population
4. To record historical events

Correct Answer: C

2. How often is the Census of Population conducted?

1. Every year
2. Every 5 years
3. Every 10 years
4. Every 2 years

Correct Answer: B

3. Who is included in the Census of Population?

1. Only Canadian citizens
2. Only people over the age of 30
3. Everyone living in Canada
4. Only property owners

Correct Answer: C

4. Which government agency is responsible for conducting the census in Canada?

1. Canada Revenue Agency
2. Statistics Canada
3. Service Canada
4. Canadian Heritage

Correct Answer: B

5. What type of information does the Census of Population collect?

1. Medical records
2. Internet usage
3. Population and housing data
4. Personal bank details

Correct Answer: C

6. Is completing the census mandatory in Canada?

1. No, it's voluntary
2. Yes, by law
3. Only during election years
4. Only if you were born in Canada

Correct Answer: B

7. How do governments use census data?

1. To plan public services like schools and hospitals
2. To create advertisements
3. To give out fines
4. To track online activity

Correct Answer: A

8. Which of the following is not a typical census question?

1. Age
2. Gender
3. Favorite color
4. Employment status

Correct Answer: C

9. What is the long-form census questionnaire?

1. A version sent to every person
2. A test for government workers
3. A quiz for students
4. A more detailed questionnaire sent to a sample of households

Correct Answer: D

10. What percentage of the population receives the long-form census versus the short-form census?

1. Long-form (25%) and short-form (75%)
2. Long-form (50%) and short-form (50%)
3. Long-form (75%) and short-form (25%)
4. Long-form (90%) and short-form (10%)

Correct Answer: A

11. Can your personal information and individual census answers be shared with other government departments?

1. No, it's confidential by law
2. Only with your doctor
3. Yes, automatically
4. Only if you agree

Correct Answer: A

12. What can happen if someone refuses to complete the census?

1. They may be fined or required to complete it
2. They may lose access to certain services
3. Nothing
4. They may be reminded the next year

Correct Answer: A

13. Who uses census data?

1. Only teachers
2. Only politicians
3. Government only
4. Governments, businesses, researchers, and communities

Correct Answer: D

14. How do most people complete the census today?

1. Through social media
2. In-person
3. By phone
4. Online or on paper

Correct Answer: D

15. What does the census help the government understand about a community?

1. Its history
2. Its current needs and how to plan for future services
3. Its social media trends
4. Its weather

Correct Answer: B

16. Who is especially important to include in the census?

1. Every individual, especially underrepresented communities
2. Celebrities
3. Tourists
4. Businesses

Correct Answer: A

17. How does the census help schools?

1. It helps determine funding and where schools are needed
2. It gives homework topics
3. It evaluates teachers
4. It rates students

Correct Answer: A

18. Why could census data be important for First Nations, Métis, and Inuit communities?

1. To monitor environmental changes
2. To reduce taxes
3. To support programs and services tailored to their needs
4. To compare to other countries

Correct Answer: C

19. What happens to census records after 92 years?

1. They're mailed back to participants
2. They're sent to international organizations
3. They're published through Library and Archives Canada for public and historical research
4. They're destroyed

Correct Answer: C

20. What is a benefit of students understanding the census?

1. They become informed citizens who understand how decisions are made
2. They get paid
3. They can influence video game design
4. They can skip class

Correct Answer: A

1. What is the main purpose of the Census of Population?

1. To track people's spending habits
2. To count the number of tourists in Canada
3. To collect information about Canada's population
4. To record historical events

2. How often is the Census of Population conducted?

1. Every year
2. Every 5 years
3. Every 10 years
4. Every 2 years

3. Who is included in the Census of Population?

1. Only Canadian citizens
2. Only people over the age of 30
3. Everyone living in Canada
4. Only property owners

4. Which government agency is responsible for conducting the census in Canada?

1. Canada Revenue Agency
2. Statistics Canada
3. Service Canada
4. Canadian Heritage

5. What type of information does the Census of Population collect?

1. Medical records
2. Internet usage
3. Population and housing data
4. Personal bank details

6. Is completing the census mandatory in Canada?

1. No, it's voluntary
2. Yes, by law
3. Only during election years
4. Only if you were born in Canada

7. How do governments use census data?

1. To plan public services like schools and hospitals
2. To create advertisements
3. To give out fines
4. To track online activity

8. Which of the following is not a typical census question?

1. Age
2. Gender
3. Favorite color
4. Employment status

9. What is the long-form census questionnaire?

1. A version sent to every person
2. A test for government workers
3. A quiz for students
4. A more detailed questionnaire sent to a sample of households

10. What percentage of the population receives the long-form census versus the short-form census?

1. Long-form (25%) and short-form (75%)
2. Long-form (50%) and short-form (50%)
3. Long-form (75%) and short-form (25%)
4. Long-form (90%) and short-form (10%)

11. Can your personal information and individual census answers be shared with other government departments?

1. No, it's confidential by law
2. Only with your doctor
3. Yes, automatically
4. Only if you agree

12. What can happen if someone refuses to complete the census?

1. They may be fined or required to complete it
2. They may lose access to certain services
3. Nothing
4. They may be reminded the next year

13. Who uses census data?

1. Only teachers
2. Only politicians
3. Government only
4. Governments, businesses, researchers, and communities

14. How do most people complete the census today?

1. Through social media
2. In-person
3. By phone
4. Online or on paper

15. What does the census help the government understand about a community?

1. Its history
2. Its current needs and how to plan for future services
3. Its social media trends
4. Its weather

16. Who is especially important to include in the census?

1. Every individual, especially underrepresented communities
2. Celebrities
3. Tourists
4. Businesses

17. How does the census help schools?

1. It helps determine funding and where schools are needed
2. It gives homework topics
3. It evaluates teachers
4. It rates students

18. Why could census data be important for First Nations, Métis, and Inuit communities?

1. To monitor environmental changes
2. To reduce taxes
3. To support programs and services tailored to their needs
4. To compare to other countries

19. What happens to census records after 92 years?

1. They're mailed back to participants
2. They're sent to international organizations
3. They're published through Library and Archives Canada for public and historical research
4. They're destroyed

20. What is a benefit of students understanding the census?

1. They become informed citizens who understand how decisions are made
2. They get paid
3. They can influence video game design
4. They can skip class

Setting: A young adult living alone in a high-rise apartment in a busy city.

Reflection questions

• How can census data help cities make decisions about things like public transit, housing, and jobs?
• Why might some young people feel like the census doesn't relate to them?
• What are some ways we can help more people understand why the census matters and encourage them to take part?

Setting: A rural household in a remote or small-town area.

Reflection questions

• What challenges might rural or remote communities face if not enough people in their area complete the census?
• How can census data help improve services and daily life in rural or remote communities?
• Why might some people feel unsure or hesitant about filling out the census?

Setting: A newcomer family recently settled in Canada receives a visit from a friendly census worker.

Reflection questions

• Why is it important that the census counts everyone living in Canada, not just people born here?
• How might language barriers make it harder for some people to participate in the census?
• How can information about the languages spoken in a community help improve services for newcomers in Canada?

Fill in the maple leaf below with a "snapshot" of your classroom, and show details from the data you collected about your class.

The following list presents the types of support associated with the value of support to ultimate beneficiaries for the reference year 2023/2024.

Type of support

• Advisory service
• Conditionally Repayable Contribution
• Grant
• Loan Guarantees
• N/A
• Non-Repayable Contribution
• Other Financial Support
• Service Fully Cost-Recovered
• Service Fully Subsidized
• Service Partially Cost-Recovered
• Targeted Procurement
• Unconditionally Repayable Contribution

The following list identifies the program streams that are covered under the Business Innovation and Growth Support statistical program for the reference year 2023/2024.

The following list identifies the program streams that provided innovation and growth support to ultimate beneficiaries for the reference year 2023/2024.