Classification John Perry, UK ONS

Promoting standards EU Compliance – e.g. NACE Revision 2 Regulation (EC) 1893/2006 Improving the quality of data - reduce avoidable differences in outputs caused by use of different classifications. Comparability for cross survey analysis and integration - Use of standard classifications will increase access to data from different sources and make them comparable across time. Provision of consistent classifications will enable the comparison of statistical products and create an environment in which multiple data sources can be integrated. Maximise return on data holdings - Statistical information is a key commodity that should be shared. When classifications are standardised internal and external users can be told where they are stored, and which versions are available. Creation of a common standard prevents the proliferation of non standard classifications. Efficient dissemination – Standardised classifications facilitate self-help for users of data on the web, thereby increasing efficiency and reducing burden on staff responsible for answering questions. Knowledge management – Use of standard classifications reduces vulnerability to staff turnover by sharing knowledge within the organization, encouraging dissemination of good practice and improving communication with internal and external users.

Relevant standards Industry coding (NACE) Sector classification (ESA) National Statistics Country Classification (NSCC) National geography Standard Occupational Classification 2000 (SOC)

UK Standard Industrial Classification 2003 Created for statistical purposes Administrative sources provide input to statistical systems Administrative users need to support their own decisions by analysis Businesses need to provide information to a wide range of government bodies

Standards through coding tools The UK introduced automated coding tools for coding descriptions of business activity as a means to move from its 1980 to its 1992 industrial classification system Closer working with the administrative departments and modernisation of the ONS computing systems have resulted in further development of coding tools. Good basis for using such tools in the introduction of the new European classification, NACE Rev. 2, in 2007.

Coding based on business activity description

Edited Description ACTR Index Entry Blank SIC2003 and SIC2007 codes Bridging Codes ACTR SIC2003 to 2007 Look-up Batch Interactive Failed Anomaly ? No Yes No input description

Adopting SIC VAT Traders – 14 January 2008 PAYE Employers – own trade codes - business descriptions provided Company Registrations – changing late in 2008 Farms Survey System – own farm type coding

UK Sector Classification for National Accounts SECTOR 11: Non-financial corporations SECTOR 12: Financial Corporations SECTOR 13: General Government SECTOR 14: Households SECTOR 15: Non-profit Institutions Serving Households SECTOR 2: Rest of the World

Coding from the business register legal status industrial classification (SIC) country of ownership codes

Example S.11001 (Public non-financial corporations) Enterprises with legal status 4 for all SIC2003 divisions except 65, 66 and 67 are allocated to this sector. Country of ownership code must be GB or blank only.

National Statistics Country Classification (NSCC) Based on the Balance of Payments vade mecum Primary source is Dun and Bradstreet own three digit codes Do not always map to BoP standard Some users request ISO three-digit codes

Issues Dun and Bradstreet ambiguity: United Kingdom Guernsey United Kingdom Jersey United Kingdom Isle of Man United Kingdom United Kingdom BoP to ISO ambiguity: Morocco Morocco (inc ISO Western Sahara) Finland Finland (inc ISO Aland)

Examples of country concordance

National geography National Statistics 2001 Area Classification (NSAC) Rural and Urban Area Classification 2004 (Harmonised) Standard Names and Codes for UK Geographies (SNAC)

Example of geographic coding standard

Standard Occupational Classification 2000 (SOC) Used for coding the annual survey of hours and earnings – a survey of businesses who provide details for a sample of their employees Coding using ACTR based on occupation descriptions Link to industry coding