August 10, 2011 (Previous notice)

• Background
• Structure of the classification

April 06, 2009

Since 1991, there have been two versions of Canada's national occupational classification. One, called the National Occupational Classification (NOC), is maintained by Human Resources and Skills Development Canada (HRSDC). The other, now called the National Occupational Classification for Statistics (NOC-S), is maintained by Statistics Canada.

The two classifications are updated on a five-year cycle through a co-operative process in which Statistics Canada and HRSDC work together to keep the classifications current, comprehensive and relevant.

NOC and NOC-S are currently being revised for 2011. As part of this revision, we are exploring possible changes to the classification used for publishing highly aggregated occupational data. This classification currently consists of the following ten categories:

• Management Occupations
• Business, Finance and Administrative Occupations
• Natural and Applied Sciences and Related Occupations
• Health Occupations
• Occupations in Social Science, Education, Government Service and Religion
• Occupations in Art, Culture, Recreation and Sport
• Sales and Service Occupations
• Trades, Transport and Equipment Operators and Related Occupations
• Occupations Unique to Primary Industry
• Occupations Unique to Processing, Manufacturing and Utilities

This set of categories is used, for example:

• In some census products, including: tables on language at work and on the educational characteristics of the labour force; community profiles; census tract profiles; and some special interest profiles, such as those on immigration and the Aboriginal population;
• In providing occupational information for small geographic areas, (i.e., below the Census Metropolitan Area (CMA));
• In providing occupational information from sample surveys, particularly when such information is cross-tabulated with other variables.

Hence, some users only have access to occupational information coded to these ten categories. Could Statistics Canada provide better service to these data users?

Research suggests that categories based partly on skill level might provide information that is more relevant to understanding the occupational structure of Canada.

The following proposal is currently being considered.

Proposal for the revision of the National Occupational Classification for Statistics (NOC-S)

Proposed Classification	Concordance to Current Classification
Management	Management Occupations
Professional	Business, Finance and Administrative Occupations (part)
Technical and Paraprofessional	Natural and Applied Sciences and Related Occupations Health Occupations (except Assisting Occupations in Support of Health Services) Occupations in Social Science, Education, Government Service and Religion Occupations in Art, Culture, Recreation and Sport
Administration and Administrative Support	Business, Finance and Administrative Occupations (part)
Sales and Services, OR Sales Services	Sales and Service Occupations and Assisting Occupations in Support of Health Services
Trades, Transport and Construction	Trades, Transport and Equipment Operators and Related Occupations
Natural Resources	Occupations Unique to Primary Industry
Manufacturing and Utility Services	Occupations Unique to Processing, Manufacturing and Utilities

If this change is adopted, products from Census 2011 would include some historical data recoded to these new categories. In addition, some products, such as profiles, may include occupation data classified to both the old and new categories in order to facilitate the transition to the new structure.

We would like to know:

1. Would the proposed change be an improvement?
2. How would this proposed change impact you? Would the change have a positive impact; a negative impact; or no impact?
3. Are there any proposed categories that you would like to change or add? What would you suggest?
4. Would you prefer to see trades and skilled transport and equipment operators:
   1. Included with others working in transport, construction and equipment operation (as is done now)?
   2. Included in the Technical and Paraprofessional category?
   3. Reported as a separate category on their own?
5. Would you rather see Sales and Service combined or separated into two groups?
6. Would you continue to require data on the current ten categories?

Please send your comments to standards-normes@statcan.gc.ca by June 30, 2009.

January 11, 2012 (Previous notice)

Statistics Canada will not be updating the Industry Classification Coding System (ICCS) to support coding to the North American Industry Classification System (NAICS) Canada 2012. The ICCS is a tool to help users code business units at the lowest level of a classification. The last ICCS CD-ROM (version 1.4) was released in July 2008 and supports coding to NAICS 2007, 2002 and 1997 and to the 1980 Standard Industry Classification - Establishments. Since the Agency's surveys and statistical programs will not be implementing NAICS 2012 until reference year 2013, NAICS 2007 will still be in use, and the ICCS version 1.4 will have an extended "shelf life" until reference year 2013. Clients and users have access to alternate classification search tools for NAICS 2012, 2007, 2002 and 1997.

March 1, 2011 (Previous notice)

The North American Classification System (NAICS) is a system for classifying production units by type of economic activity. It was developed by the statistical agencies of Canada, Mexico and the United States in order to facilitate the collection, tabulation, analysis and dissemination of industry statistics and allow three-country uniformity and comparability of such data. NAICS is also widely used by government agencies, trade associations, public and private sector businesses and various other organizations.

• Purpose and use of this notice
• Background
• Criteria for creating new classes or updating current classes
• Timeline for the 2012 NAICS revision process
• Consultation results

Purpose and use of this notice

This notice is intended to provide interested parties with an update about the status of NAICS 2012, principally a summary of NAICS provisional changes for 2012. The decisions presented here are not exhaustive in every detail. This document serves to notify users of the changes at a high level.

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Background

The first version of NAICS was created for the 1997 reference year. The three countries agreed upon the conceptual framework of the new system and the principles upon which NAICS was to be developed.

1. NAICS would be based on a production-oriented or supply-based conceptual framework. This means that producing units using similar production processes would be grouped together in NAICS.
2. Special attention would be given to developing production-oriented classifications for (a) new and emerging industries (b) services industries in general and (c) industries engaged in the production of advanced technologies.
3. Time-series continuity would be maintained to the extent possible. However, changes in the economy and proposals from data users would be considered. In addition, in order to create a common system for all three countries, adjustments would be made where the United States, Canada and Mexico had incompatible definitions.
4. In the interest of a wider range of international comparisons, the three countries would strive for greater compatibility with the two-digit level of the International Standard Industrial Classification of All Economic Activities (ISIC Revision 4).

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Criteria for creating new classes or updating current classes

NAICS is revised every five years. In the current revision for 2012, Statistics Canada remained committed to maintaining the founding principles of NAICS. Over and above these founding principles, the call for proposals also specified that classes should respect the basic classification principles of mutual exclusivity, exhaustiveness, and homogeneity of classes, be empirically significant (gross revenues of $500 million) and be relevant (be of analytical interest and result in data useful to users).

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Timeline for the 2012 NAICS revision process

A public consultation was launched on Statistics Canada's website on July 3rd, 2008 through a call for proposals for changes to the 2007 NAICS version. The deadline for receipt of proposals was September 30th, 2009.

The review of the proposals and consultations within Statistics Canada and with our Mexican and American counterparts were undertaken throughout 2008 and into 2009. NAICS revisions for 2012 were finalized in January 2011.

Work on NAICS 2012 will continue in 2011. Release of the final NAICS 2012 manual will be in December 2011.

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Consultation results

In response to the online call for revision proposals, and as a result of consultation within Statistics Canada and with our American and Mexican partners, various kinds of changes will be brought into NAICS for 2012. Among the most notable changes are changes relating to outsourcing of manufacturing production, video game developers, book publishing exclusive agents and crafts. Many changes involve clarification of the definition and boundary of classes through:

• changes to the descriptive text of the definition that clarifies it but does not change the scope of the industry
• changes to the illustrative examples
• changes to the exclusions
• changes to the titles of industries

Some changes involve the reduction of detail, while other industries were detailed further. Several other changes involved code numbering changes, by pushing 5-digit detail down to the 6-digit level, with otherwise no changes. This was done to keep the NAICS coding consistent at the trilateral level.

Outsourcing of manufacturing

The treatment of factoryless goods producers (FGPs) - units that outsource the transformation process for manufactured goods - will be clarified for NAICS 2012. The activities of FGPs will be classified to manufacturing if the units own the inputs to production. Otherwise the units will be classified to wholesale trade. The sector definitions for 31-33 Manufacturing and 41 Wholesale Trade will be updated to clarify the classification of FGPs in NAICS Canada 2012, and implementation guidelines are being developed. This treatment is consistent with the ISIC Rev. 4 treatment of factoryless goods producers.

Video game publishers and developers

Two new 6-digit industries will be created to cover the video game developers industries. One of these will be under 51121 Software Publishers, while the other will be under 54151 Computer Systems Design and Related Services. See table 2 for details.

Book publishing and exclusive agents

Exclusive agents are a concept particular to the Canadian book publishing industry. Exclusive agents will be classified from 414420 Book, Periodical and Newspaper Wholesaler-Distributors and into 511130 Book Publishers.

Crafts

Artisans currently classified in manufacturing will be classified to 711511 Independent Artists, Visual Arts.

Own-account mineral exploration

Own-account mineral exploration activities will be classified under the mining industries, 212 Mining and Quarrying (except Oil and Gas), rather than support activities, 213 Support Activities for Mining and Oil and Gas Extraction.

Changes to descriptive text

There are numerous cases where revision requests resulted in changes to the descriptive text of various classes. These changes include:

• clarification of the treatment of transporting timber on own-account in 113310 Logging
• clarification of the description for 321114 Wood Preservation
• revision of the description for sector 41 Wholesale Trade to clarify the treatment of manufacturers' sales offices and branches
• modification of the text for 488519 Other Freight Transportation Arrangement to clarify the treatment of establishments providing logistics services
• clarification of the treatment of distribution centres in the industry group 4931 Warehousing and Storage
• revision of the text for 541430 Graphic Design Services to explicitly include website designers
• revision of the definition for 551114 Head Offices to include greater detail for the description of this industry
• revision of the text for 711513 Independent Writers and Authors to clarify that this industry includes trade and technical writers, in addition to writers creating artistic or literary works
• revision of the text for 722511 Full-service restaurants to specify the inclusion of drinking places that derive the majority of their revenues from serving food

Changes to illustrative examples

The NAICS definitions are usually supported by examples and exclusions. Some of the proposals for NAICS revisions resulted in changes to illustrative examples, including:

• creating an example for firestop contractors in 238310 Drywall and Insulation Contractors
• moving the example for wood cabinet manufacturing from 337123 Other Wood Household Furniture Manufacturing to 321990 All Other Wood Product Manufacturing
• moving digital cameras manufacturing from 334110 Computer and peripheral equipment manufacturing to 333310 Commercial and Service Industry Machinery Manufacturing
• creating new examples for consulting services under 5416 Management, Scientific and Technical Consulting Services
• moving the example "Race horse trainers" from 711218 Other Spectator Sports to 711213 Horse Race Tracks.

Changes to exclusions

A number of changes to exclusions were made, of which additions of exclusions to clarify:

• 541310 Architectural Services
• 112510 Aquaculture
• 541690 Other Scientific and Technical Consulting Services.

Title changes

The Table 1, below, contains a list of title changes for NAICS 2012 classes. More French titles have been modified as a result of translation improvements.

In addition to the changes in the table, there is a change that affects almost all classes, from the 3-digit to the 6-digit level, under sector 41 Wholesale Trade. For brevity sake these changes are summarized here, rather than being reported in detail in the table. In NAICS 2007, these industries are known as Wholesaler-Distributors. In NAICS 2012, the term Wholesaler-Distributors will be replaced with merchant wholesaler. For example, 416120 Plumbing, Heating and Air-Conditioning Equipment and Supplies Wholesaler-Distributors will be replaced with 416120 Plumbing, heating and air-conditioning equipment and supplies merchant wholesalers.

Table 1
Title changes

The table 1, below, contains a list of title changes for NAICS 2012 classes. More French titles have been modified as a result of translation improvements.

Petroleum Product Wholesaler - Distributors Petroleum and petroleum products merchant wholesalers

Table 1
Title changes

CODE	NAICS 2007 Title	NAICS 2012 Title
112	Animal Production	Animal production and aquaculture
212	Mining and Quarrying (except Oil and Gas)	Mining and quarrying (except oil and gas extraction)
412	Petroleum Product Wholesaler - Distributors	Petroleum and petroleum products merchant wholesalers
4121	Petroleum Product Wholesaler - Distributors	Petroleum and petroleum products merchant wholesalers
41211	Petroleum Product Wholesaler - Distributors	Petroleum and petroleum products merchant wholesalers
412110	Petroleum Product Wholesaler - Distributors	Petroleum and petroleum products merchant wholesalers
41445	Video Cassette Wholesalers	Video recording merchant wholesalers
414450	Video Cassette Wholesalers	Video recording merchant wholesalers
415	Motor Vehicle and Parts Wholesaler-Distributors	Motor vehicle and motor vehicle parts and accessories merchant wholesalers
41892	Mineral, Ore and Precious Metal Wholesaler-Distributors	Mineral, ore, precious metal, and precious stones merchant wholesalers
418920	Mineral, Ore and Precious Metal Wholesaler-Distributors	Mineral, ore, precious metal, and precious stones merchant wholesalers
45291	Warehouse Clubs and Superstores	Warehouse clubs
452910	Warehouse Clubs and Superstores	Warehouse clubs

Other changes

Revisions that resulted in the reduction of detail through the merging of classes or in greater detail through the splitting of classes as well as in code renumbering are shown in Table 2.

Table 2
Merges, splits and code renumbering at the 6-digit level

** S – same class but with new number or title
SP – splitting of classes
M – merging of classes

Revisions that resulted in the reduction of detail through the merging of classes or in greater detail through the splitting of classes as well as in code renumbering are shown in table 2.

Table 2
Merges, splits and code renumbering at the 6-digit level

2007 NAICS code	2007 NAICS description	Status**	2012 NAICS code	2012 NAICS description
311320	Chocolate and Confectionery Manufacturing from Cacao Beans	S	311351	Chocolate and chocolate confectionery manufacturing from cacao beans
311330	Confectionery Manufacturing from Purchased Chocolate	S	311352	Confectionery manufacturing from purchased chocolate
311822	Flour Mixes and Dough Manufacturing from Purchased Flour	M	311824	Flour mixes, dough, and pasta manufacturing from purchased flour
311823	Dry Pasta Manufacturing	M	311824	Flour mixes, dough, and pasta manufacturing from purchased flour
315221	Men's and Boys' Cut and Sew Underwear and Nightwear Manufacturing	M	315220	Men's and boys' cut and sew clothing manufacturing
315222	Men's and Boys' Cut and Sew Suit, Coat and Overcoat Manufacturing	M	315220	Men's and boys' cut and sew clothing manufacturing
315226	Men's and Boys' Cut and Sew Shirt Manufacturing	M	315220	Men's and boys' cut and sew clothing manufacturing
315227	Men's and Boys' Cut and Sew Trouser, Slack and Jean Manufacturing	M	315220	Men's and boys' cut and sew clothing manufacturing
315229	Other Men's and Boys' Cut and Sew Clothing Manufacturing	M	315220	Men's and boys' cut and sew clothing manufacturing
315231	Women's and Girls' Cut and Sew Lingerie, Loungewear and Nightwear Manufacturing	M	315249	Women's and girls' cut and sew clothing manufacturing
315232	Women's and Girls' Cut and Sew Blouse and Shirt Manufacturing	M	315249	Women's and girls' cut and sew clothing manufacturing
315233	Women's and Girls' Cut and Sew Dress Manufacturing	M	315249	Women's and girls' cut and sew clothing manufacturing
315234	Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket and Skirt Manufacturing	M	315249	Women's and girls' cut and sew clothing manufacturing
315239	Other Women's and Girls' Cut and Sew Clothing Manufacturing	M	315249	Women's and girls' cut and sew clothing manufacturing
315291	Infants' Cut and Sew Clothing Manufacturing	S	315241	Infants' cut and sew clothing manufacturing
315292	Fur and Leather Clothing Manufacturing	S	315281	Fur and leather clothing manufacturing
315299	All Other Cut and Sew Clothing Manufacturing	S	315289	All other cut and sew clothing manufacturing
333210	Sawmill and Woodworking Machinery Manufacturing	S	333245	Sawmill and woodworking machinery manufacturing
333220	Rubber and Plastics Industry Machinery Manufacturing	S	333246	Rubber and plastics industry machinery manufacturing
333291	Paper Industry Machinery Manufacturing	S	333247	Paper industry machinery manufacturing
333299	All Other Industrial Machinery Manufacturing	S	333248	All other industrial machinery manufacturing
443110	Appliance, Television and Other Electronics Stores	S	443143	Appliance, television and other electronics stores
443120	Computer and Software Stores	S	443144	Computer and software stores
443130	Camera and Photographic Supplies Stores	S	443145	Camera and photographic supplies stores
451110	Sporting Goods Stores	SP	451111	Golf equipment and supplies specialty stores
		SP	451112	Ski equipment and supplies specialty stores
		SP	451113	Cycling equipment and supplies specialty stores
		SP	451119	All other sporting goods stores
451210	Book Stores and News Dealers	S	451310	Book stores and news dealers
451220	Pre-Recorded Tape, Compact Disc and Record Stores	S	443146	Pre-Recorded Tape, Compact Disc and Record Stores
454111	Internet Shopping	M	454110	Electronic shopping and mail-order houses
454112	Electronic Shopping	M	454110	Electronic shopping and mail-order houses
454113	Mail-Order Houses	M	454110	Electronic shopping and mail-order houses
511210	Software Publishers	SP	511211	Software publishers, except video game publishers
		SP	511212	Video game publishers
541510	Computer Systems Design and Related Services	SP	541514	Computer systems design and related services, except video game developers
		SP	541515	Video game developers
722110	Full-Service Restaurants	S	722511	Full-service restaurants
722210	Limited-Service Eating Places	S	722512	Limited-service eating places

Unsuccessful proposals

In addition, many proposals for changes to NAICS 2007 did not result in revisions. These cases fell under a number of categories, including:

• proposals that were best satisfied with product coding rather than industry coding
• proposals that did not meet the requirements for new industries
• proposals on which trilateral agreement could not be reached
• proposals that were withdrawn by the originators

Product and technology classifications

Some of the proposals for NAICS 2012 revisions did not meet the criteria for industry coding. Rather, they were requests for classification of products or technologies. These revisions are best dealt with through the North American Products Classification System (NAPCS), or some technology classification.

No trilateral agreement

Several proposals were discussed with representatives of the statistical agencies of the United States and Mexico, but failed to gain trilateral support (i.e., agreement among the three NAICS partner countries).

Failed to meet requirements of new or revised industries

A number of proposals for new or revised NAICS industries were discussed within Statistics Canada and were rejected on the grounds that they did not meet the requirements of industry classification. The specific failure may also be related to a structural problem with the proposal, or a lack of agreement among all interested parties.

Withdrawn by sponsors

Numerous proposals were withdrawn by their sponsors. In most cases, they were withdrawn following discussions between classification specialists and subject matter specialists, on the grounds that they did not meet the requirements of good industrial classification; or upon investigation of the proposals, it was determined that they would not meet the goals of the sponsor.

Questions regarding NAICS changes for 2012

Please direct any questions regarding the contents of this document, or any NAICS 2012 changes to standards-normes@statcan.gc.ca.