Implementation of NACE Rev. 2 in European Context

1. Title of course ECONOMIC AND ACTIVITY CLASSIFICATIONS Implementation of NACE Rev. 2 Marie-Madeleine Fuger (INSEE -France-) marie-madeleine.fuger@insee.fr Gheorghe Constantinescu (INSSE -Romania-) constantinescugh@yahoo.com

2. Implementation of NACE Rev. 2 European context ♦ According to European legislation the use of NACE Rev. 2 is mandatory within the European Statistical System - Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006. NACE Rev. 2 came into force on January 1st, 2008. ♦ In September 2004, EUROSTAT decided to set up a Task Force whose mandate was to identify all domains and coordinate all actions related to the implementation of the revised classifications; ♦ In order to help the NSI`s a dedicated web page containing all available information on NACE Rev.2 (the structure of NACE Rev. 2; the explanatory notes; the introductory guidelines; correspondence tables between the NACE versions; Regulation draft) has been created; ♦ The Implementation plan of NACE Rev. 2, in various statistical domains, was elaborated.

3. Implementation of NACE Rev. 2 European context Implementation plan of NACE Rev.2

4. Implementation of NACE Rev. 2 European context ♦ Implementation of NACE Rev. 2 was a complex process, requiring both methodological assistance and a good coordination of NSI’s actions. To support the NSI’s, a set of handbooks has been elaborated. • - Setting up an implementation plan for NACE Rev. 2; • - Implementation of NACE Rev.2 in Business Registers; • - Handbook on methodological aspects related to sampling • designs and weights estimations; • - Handbook on back-casting; • - Rules for classification of units outsourcing their production.

5. Implementation of NACE Rev. 2 European context ♦ Implementation of NACE Rev. 2 is a long process, implying the completion of some certain stages: ▪ The setting up of the implementation plan; ▪ The elaboration of the national version of NACE Rev. 2 and the adaptation of national legislations according to stipulations from NACE Rev. 2 Regulation; ▪ The recoding of the Business Registers according to NACE Rev. 2 (or its national version); ▪ The adaptation of the statistical surveys (samples and estimation techniques); ▪ The reconstruction of time series (double reporting, back-casting); ▪ The changes of the reference database and dissemination formats.

6. Implementation of NACE Rev. 2 NSI Romania The setting up of the national implementation plan Types of changes between NACE Rev. 1.1 and NACE Rev. 2 BR updating– Implementation of NACE Rev. 2/CANE Rev. 2 in the Romanian Business Registers - REGIS Implementation plan of CANE Rev. 2/ NACE Rev. 2 Actions ►Since 2004, NSI Romania organized meetings with the representatives of the local and central public administration in order to prepare the switch to the new activities classification. ►In the year 2004 a first draft of the general implementation plan was elaborated. During May – December 2005, the general plan for implementation of CANE Rev. 2 was reconsidered and finalized. (ANNEX 1) ►In NSI Romania a Committee for implementation of CANE Rev. 2 was created.

7. Implementation of NACE Rev. 2 NSI Romania Types of changes NACE Rev. 1.1 – NACE Rev. 2 A - 1 : 1(to one NACE Rev.1.1 class corresponds one NACE Rev. 2 class); B-n : 1(to two or moreNACE Rev. 1.1classes corresponds one NACE Rev. 2 class); C-1 : n(to one NACE Rev. 1.1 classcorresponds two or more NACE Rev. 2 classes); D - n : m(at two or more NACE Rev. 1.1 classes corresponds two or more NACE Rev. 2 classes).

8. Implementation of NACE Rev. 2 NSI Romania NACE Rev. 2 classes by types of changes - Tip A (1:1) : 251 classes (41%) – automatic recoding - Tip B (n:1) : 9 classes (1%) – automatic recoding - Tip C (1:n) : 55 classes (9%) – requests specific BR improvement survey - Tip D (n:m) : 300 classes (49%) – requests specific BR improvement survey

9. Implementation of NACE Rev. 2 NSI Romania BR updating Objective • The units from Romanian BR will be recoded according to CANE Rev.2; The national activities classification CANE Rev.2 finalized before June, 2007 (including the correspondence table CANE Rev.1 - CANE Rev.2); • The BR updating process will be completed before the end of 2007; A specific statistical survey (AM_REGIS 2007), for BR updating, has been organized; The survey took place in September, 2007. •The double-code status, for the units in BR, will be kept until 2011;

10. Implementation of NACE Rev. 2 NSI Romania BR updating BR status at 31 December 2006

11. Implementation of NACE Rev. 2 NSI Romania BR updating AM_REGIS 2007 Survey • Survey characteristics • units which can not be recoded automatically; • units covering around 80% of the turnover for each activity class from CANE Rev.1; • organized separately from other statistical surveys; • the questionnaires were tailored (personalized) – including correspondence tables; • about 45 000 units were surveyed: • - 25 933 units with over 20 employees; • - 14 628 units that represent a sample from 0-19 employees stratum; • - 4 385 public institutions.

12. Implementation of NACE Rev. 2 NSI Romania BR updating Methods applied for the BR updating First method applied by NSI Romania for the BR updatingExample1 Step 1 – BR analyze The analysis of BR shows that: - 66 units - with main activity 32.10; -40 units - covering more than 80% from the total turnover of activity class 32.10 - units to be surveyed.

13. Implementation of NACE Rev. 2 NSI Romania BR updating Step 2 – AM_REGIS 2007 Survey After the survey, the distribution according to CANE Rev.2/NACE Rev.2 structure indicate that: Step 3 – Decision The units not included in AM_REGIS 2007 were re-codified with 26.11, because this activity class has the height majority, 63 %, according to the distribution of surveyed units .

14. Implementation of NACE Rev. 2 NSI Romania BR updating Step 4 – BR update The units belonging to the CANE Rev.1/NACE Rev.1.1 class 32.10 were re-coded (double coded) as follows: Conclusions ▪This method has been applied when a new activity class contained more than60% of the units surveyed. ▪The60% limit was decided, at national level, by the Committee for implementation of CANE Rev.2 ;

15. Implementation of NACE Rev. 2 NSI Romania BR updating Second method applied by NSI Romania for the BR updatingExample2 Step 1 – BR analyze The analysis of BR shows that: -263 units - with main activity 17.54; - 58 units - covering more than 80% from the total turnover of activity class 17.54 - units to be surveyed.

16. Implementation of NACE Rev. 2 NSI Romania BR updating Step 2 – AM_REGIS 2007 Survey After the survey, the distribution according to CANE Rev.2/NACE Rev.2 structure indicate that: Step 3 – Decision For the rest of theunits, not included in AM_REGIS 2007, were applied the calculated percents. { 52% => class13.93 - 107 units 44% => class13.99 - 90units 4% => class 17.22 - 8units 263 – 68 = 205

17. Implementation of NACE Rev. 2 NSI Romania BR updating Step 4 – BR update The units belonging to the CANE Rev.1/NACE Rev.1.1 class 17.54 were re-coded (double coded) as follows: Conclusions ▪This method has been applied whenthe content of each new activity classes was under 60% of the units surveyed. ▪The60% limit was decided, at national level, by the Committee for implementation of CANE Rev.2 ;

18. Implementation of NACE Rev. 2 NSI Romania BR updating Conversion matrix CANE Rev.1/NACE Rev.1.1 - CANE Rev.2/NACE Rev.2 ►The conversion matrix was built using the repartitions of units from the grossing up of the results obtained in the AM_REGIS 2007 survey. (ANNEX2) ► The conversion coefficients were calculated using: ● The turnover of the units belonging to each pair of activity classes; ● The number of employees of the units belonging to the same pairs. ► The coefficients from conversion matrix were used for the first time in the STS data back-casting.

19. Implementation of NACE Rev. 2 NSI Romania BR updating Conversion matrix forExample No. 1

20. Implementation of NACE Rev. 2 NSI Romania BR updating Conversion matrix forExample No. 2

21. Implementation of NACE Rev. 2 NSI Romania Results ►ClassificationofActivitiesfromNationalEconomy- CANE Rev.2 was approvedby Order of the NSI PresidentNo 337/April 2007 and published in theOfficial Journal of Romania No. 293/3.05.2007. CANE Rev.2came into force on January 1st, 2008. ►The Romanian Business Register – REGIS was updated before the end of year 2007. The new version of Business Register -REGIS 2- is in use since January 1st, 2008. All units in REGIS 2 are double coded according to CANE Rev.1 and CANE rev.2. ► Implementation of CANE Rev.2/ NACE Rev. 2 in various statistical domains was done without delays, according to the national implementation plan.

22. Implementation of NACE Rev. 2 Thank you!