ISIC Coding Issues

1. ISIC Coding Issues Jürgen Schwärzler, UN Statistics Division, Classifications Section

2. Problems with current system • Use of letters at top has been criticized • Pure numerical easier to handle in computer systems • 17 top Sections are too much; Manufacturing too detailed • length of the code: change from 4 to 5 digit code would be costly (sequential files)

3. ISIC 3.1 coding system

4. ISIC 3.1 coding system • Characteristics: • 4 digits/3 levels + 1 letter for top level • 17 top level Sections • 62 Divisions • 161 Groups • 297 classes • Manufacturing with 23 Divisions

5. ISIC 3.1 coding system • Advantages: • Numeric for code-assignment • 3 levels with 4 digits and # top level ‘Sections’ > 10 • Disadvantage: • A “correlation table” between 1st and 2nd level is needed • Manufacturing exceeds 10 Groups

6. Correlation, Section<–>Division

7. Overview Alternatives Reflect everybody’s wishes would mean: • Pure numeric code (6 digits), • add’l top-top level (6 digits), • Constraint: 4 digits • Numerical, assuming 22 Sections • Letters for Sections, assuming 22 Sections • Numbers for top level (4 levels, remove 1 level) • Numbers for top level (5 levels, keep structure) • Intermediate level for Manufacturing

8. ISIC 4 structure, option 1a • Top structure with 22 sections • Purely numerical • 4 digits /3 levels • Lowest level lost! • Manufacturing not solved!

9. 1st level 2nd level 3rd level ISIC 4 structure, option 1a 01 Agriculture, hunting, fishing, forestry 011 Agriculture and related services 0111 Crop production; market gardening; horticulture 0112 Animal production 0113 Mixed agriculture 0115 Incidental services to agriculture 012 Fish farming 0121 Open sea fish farming 0122 Other fish farming 013 Fishing 0131 Deep sea fishing 0132 Costal and lagoon fishing 0133 Lake and river fishing 014 Hunting and trapping 0140 Hunting and trapping 015 Forestry and logging 0151 Forestry 0152 Logging 0153 Incidental services to forestry and logging 02 Mining and quarrying

10. ISIC 4 structure, option 1b • Top structure with 22 sections • Purely numerical • 5 digits /4 levels • Detail of ISIC 3.1 preserved • Manufacturing not solved!

11. 4th level, ISIC 3.1 ISIC 4 structure, option 1b 01 Agriculture, hunting, fishing, forestry 011 Agriculture and related services 0111 Crop production; market gardening; horticulture 01111 Growing of cereals and other crops n.e.c. 01112 Growing of vegetables, horticultural specialties and nursery products 01113 Growing of fruit, nuts, beverage and spice crops 0112 Animal production 01121 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 01129 Other animal farming; production of animal products n.e.c. 0113 Mixed agriculture 01130 Mixed agriculture 0115 Incidental services to agriculture 01150 Incidental services to agriculture 012 Fish farming … 02 Mining and quarrying

12. ISIC 4 structure, option 1c • Top structure with 22 sections • Purely numerical • Compressed structure with • 4 digits /3 levels • Get rid of an intermediate level! • Detail of ISIC 3.1 preserved • Run into additional troubles • Manufacturing not solved!

13. 1st level 2nd level 4th level ISIC 4 structure, option 1c 01 Agriculture, hunting, fishing, forestry 011 Agriculture and related services 0111 Growing of cereals and other crops n.e.c. 0112 Growing of vegetables, horticultural specialties and nursery products 0113 Growing of fruit, nuts, beverage and spice crops 0114 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 0115 Other animal farming; production of animal products n.e.c. 0116 Mixed agriculture 0117 Incidental services to agriculture 012 Fish farming … 02 Mining and quarrying

14. ISIC 4 structure, option 2 • Maintaining current ISIC coding structure • Top structure with 22 Sections • Top level “letter-coded” • 4 digits (3 numeric levels + 1 letter) • Disadvantages remain unresolved

15. 4th level 1st level 2nd level 3rd level ISIC 4 structure, option 2 A Agriculture, hunting, fishing, forestry 01 Agriculture and related services 011 Crop production; market gardening; horticulture 0111 Growing of cereals and other crops n.e.c. 0112 Growing of vegetables, horticultural specialties and nursery products 0113 Growing of fruit, nuts, beverage and spice crops 012 Animal production 0121 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 0129 Other animal farming; production of animal products n.e.c. 013 Mixed agriculture 0130 Mixed agriculture 015 Incidental services to agriculture 0150 Incidental services to agriculture … B Mining and quarrying

17. ISIC 4 structure, option 3 • Additional top-level (<10 categories) • Purely numerical code • Compressed structure • 4 levels/4 digits  Get rid of an intermediate level!  Run into additional troubles

18. TOP-level 1st level 2nd level 4th level ISIC 4 structure, option 3 1 Agriculture, hunting, fishing, forestry 10 Agriculture, hunting, fishing, forestry 101 Agriculture and related services 1011 Growing of cereals and other crops n.e.c. 1012 Growing of vegetables, horticultural specialties and nursery products 1013 Growing of fruit, nuts, beverage and spice crops 1014 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 1015 Other animal farming; production of animal products n.e.c. 1016 Mixed agriculture 1017 Incidental services to agriculture 102 Fish farming 1021 Open sea fish farming 1022 Other fish farming … 2 Mining and quarrying

19. ISIC 4 structure, option 4a • Additional top-level (<10 categories) • 1 level “letter coded” • 5 levels (4 digits+1 letter) • Unattached “letter-code”-level (~status quo)

20. TOP-level 4th level 1st level 2nd level 3rd level ISIC 4 structure, option 4a 0 Agriculture, hunting, fishing, forestry A Agriculture, hunting, fishing, forestry 01 Agriculture and related services 011 Crop production; market gardening; horticulture 0111 Growing of cereals and other crops n.e.c. 0112 Growing of vegetables, horticultural specialties and nursery products 0113 Growing of fruit, nuts, beverage and spice crops 012 Animal production 0121 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 0122 Other animal farming; production of animal products n.e.c. 013 Mixed agriculture 0130 Mixed agriculture 014 Incidental services to agriculture 0140 Incidental services to agriculture … 1 Mining and quarrying B Mining and quarrying

21. ISIC 4 structure, option 4b • Additional top-level (<10 categories) • Two levels are “letter coded” • Can easily accommodate current ISIC structure • 5 levels (3 digits+2 letters) • Unattached “letter-code”-level • Same drawbacks as current system

22. TOP-level 4th level 1st level 2nd level 3rd level ISIC 4 structure, option 4b 0 Agriculture, hunting, fishing, forestry A Agriculture, hunting, fishing, forestry AA Agriculture and related services 01 Crop production; market gardening; horticulture 011 Growing of cereals and other crops n.e.c. 012 Growing of vegetables, horticultural specialties and nursery products 013 Growing of fruit, nuts, beverage and spice crops 02 Animal production 021 Farming of cattle, sheep, goats, horses, asses, mules and hinnies; dairy farming 022 Other animal farming; production of animal products n.e.c. 03 Mixed agriculture 030 Mixed agriculture AB Fish farming … 1 Mining and quarrying B Mining and quarrying

23. Special case: Manufacturing • Option A: split into 16 categories as proposed  Would require 2 digits on whatever level • Option B: create intermediate level (~5 groupings)

24. Manufacturing (1)

25. Manufacturing (2) Manufacturing (2)

26. Manufacturing (3)

27. Manufacturing (4) • M1: Manufacture of food products, beverages, tobacco • M2: Manufacture of textiles, wearing apparel, fur, leather and related products • M3: Manufacture of wood and wood products • M4: Manufacture of petroleum products, chemicals, chemical products, plastics and rubber • M5: Manufacture of metals, machines, transport and electric/electronic equipment • M6: Manufacture n.e.c