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United Nations

Economic &

S o c i a l A f f a i r s

Statistical Papers

Series M No. 4, Rev.4

Published by the United Nations

ISBN

978-92-1-161518-0

Sales No. E.08.XVII.25

07-66517

—August

2008—2,330

Department of Economic and Social Afiairs

Statistics Division

International

Standard Industrial

Classi?cation of All

Economic Activities

Revision 4

United Nations

New York, 2008

ST/ESA/STAT/SER.M/4/Rev.4

Statistical papers

Series M No. 4/Rev.4

ST/ESA/STAT/SER.M/4/Rev.4

UNITED NATIONS PUBLICATION

Sales No. E.08.XVII.25

ISBN: 978-92-1-161518-0

Copyright

United Nations, 2008

All rights reserved

Printed in United Nations, New York

Department of Economic and Social Affairs

The Department of Economic and Social Affairs of the United Nations Secretariat is a vital interface between global policies in the economic, social and environmental spheres and national action. The Department works in three main interlinked areas: (i) it compiles, generates and analyses a wide range of economic, social and environ mental data and information on which States Members of the United Nations draw to review common problems and to take stock of policy options; (ii) it facilitates the negotiations of Member States in many intergovernmental bodies on joint courses of action to address ongoing or emerging global challenges; and (iii) it advises interested Governments on the ways and means of translating policy frameworks developed in United Nations conferences and summits into programmes at the country level and, through technical assistance, helps build national capacities. Note The designations used and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. ?e term “country" as used in this publication also refers, as appropriate, to ter- ritories or areas. ?e designations “developed regions" and “developing regions" are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Symbols of United Nations documents are composed of capital letters combined with ?gures. Mention of such a symbol indicates a reference to a United Nations docu ment. iii

Preface

The International Standard Industrial Classification of All Economic Activities (ISIC) is the international reference classification of productive activities. Its main purpose is to provide a set of activity categories that can be utilized for the collection and report ing of statistics according to such activities. Since the adoption of the original version of ISIC in 1948, the majority of coun tries around the world have used ISIC as their national activity classi?cation or have developed national classi?cations derived from ISIC. ISIC has therefore provided guidance to countries in developing national activity classi?cations and has become an important tool for comparing statistical data on economic activities at the interna tional level. Wide use has been made of ISIC, both nationally and internationally, in classifying data according to kind of economic activity in the ?elds of economic and social statistics, such as for statistics on national accounts, demography of enterprises, employment and others. In addition, ISIC is increasingly used for non-statistical pur- poses. ?is fourth revision of ISIC (ISIC, Rev.4) is the outcome of a review process that spanned several years and involved contributions from many classi?cations experts and users around the world. ?is process resulted in an ISIC structure that is more detailed than the previous version, responding to the need to identify many new industries separately. ?is is especially applicable in the case of services. Moreover, the relevance of the Classi?cation has been enhanced with the introduction of new high-level categories to better reect current economic phenomena. A new section entitled “Information and communication" (see part three, sect. J) is one such innova tion. Comparability has also been enhanced with a number of other regional activity classi?cations, thus making this version of ISIC a much improved tool for interna tional data comparison. A number of alternate aggregations have been included in the present publi cation. ?ey provide analytical tools for areas which, for conceptual reasons, do not lend themselves to aggregation within the existing ISIC structure. Among the alternate aggregations included in this version of ISIC are aggregations for information and communications technology, the informal sector and non-pro?t institutions, as well as two aggregations for national accounts-type analysis, one at very aggregated and another at an intermediate level of ISIC. ?e structure of the fourth revision of ISIC was considered and approved by the Statistical Commission at its thirty-seventh session, in March 2006, 1 as the interna tionally accepted standard. It now replaces the third revision of the classi?cation 2 and its update, Revision 3.1, 3 which have been in use since 1989 and 2002, respectively. 1

See oficial records of the

Economic and Social Council, 2002,

Supplement no.4

(E/2006/24), chap. I, para. 3, item 37/105 (a). 2

Statistical papers, No.4, Rev.3

(United Nations publication,

Sales No. E.90.XVII.11).

3

Statistical papers, No.4, Rev.3.1

(United Nations publication,

Sales No. E.03.XVII.4).

v

Contents

Page

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii

Historical background

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii

Support for ISIC users

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii

Acronyms and abbreviations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv

Part one

Introdu

CtIon

Chapter

Paragraphs Page

I. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-21 3

II. ?e underlying principles of the classi?cation . . . . . . . . . . . . 22-54 7 A. Purpose and nature of the classi?cation . . . . . . . . . . . . . . 22-37 7 1. General considerations . . . . . . . . . . . . . . . . . . . . . 22-27 7 2. Scope of the classi?cation. . . . . . . . . . . . . . . . . . . . 28-29 8 3. Di?erences from other types of classi?cations . . . . . . . . 30-37 9 B. Principles used in constructing the classi?cation . . . . . . . . . 38-45 10 C. Structure and coding system of the classi?cation . . . . . . . . . 46-54 11

III. Application of the classi?cation. . . . . . . . . . . . . . . . . . . . . 55-157 13

A. Principal, secondary and ancillary activities. . . . . . . . . . . . 55-63 13 B. Statistical units . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64-102 14 1. General remarks. . . . . . . . . . . . . . . . . . . . . . . . . 64-75 14 a Legal entities . . . . . . . . . . . . . . . . . . . . . . . 71-72 15 b Institutional units. . . . . . . . . . . . . . . . . . . . . 73-75 15 2. Statistical units in the System of National Accounts. . . . . 76-83 16 a Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . 77-79 16 b Establishment . . . . . . . . . . . . . . . . . . . . . . . 80-83 16 3. Other statistical units . . . . . . . . . . . . . . . . . . . . . . 84-89 17 a Kind-of-activity unit . . . . . . . . . . . . . . . . . . . 85 17 b Local unit . . . . . . . . . . . . . . . . . . . . . . . . . 86-87 17 c Unit of homogeneous production . . . . . . . . . . . 88-89 17 4. Delineating statistical units. . . . . . . . . . . . . . . . . . . 90-99 18 5. National di?erences in selecting statistical units. . . . . . . 100-102 19 C. Classi?cation of statistical units . . . . . . . . . . . . . . . . . . 103-154 20 1. General guidelines. . . . . . . . . . . . . . . . . . . . . . . . 103-112 20 a Value-added substitutes . . . . . . . . . . . . . . . . . 107-109 20 b Problems with output substitutes . . . . . . . . . . . . 110-111 21 c Problems with input substitutes . . . . . . . . . . . . . 112 21 International Standard Industrial Classification of All Economic Activities (ISIC), Revision 4vi 2. Treatment of mixed activities . . . . . . . . . . . . . . . . . 113-131 22 a Treatment of independent multiple activities . . . . . 115-116 22 b Treatment of vertical integration . . . . . . . . . . . . 117-119 22 c Treatment of horizontal integration. . . . . . . . . . . 120-122 23 d ?e “top-down" method . . . . . . . . . . . . . . . . . 123-131 23

Box 1.

Example: Identifying the principal activity of a

reporting unit using the top-down method . . . . . . . . 24

Box 2.

Example: Identifying the principal activity of a

reporting unit using the top-down method within wholesale and retail trade . . . . . . . . . . . . . . . . . . 27 3. E-commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . 132-134 28 4. Repair and maintenance . . . . . . . . . . . . . . . . . . . . 135 29 5. Outsourcing / activities on a fee or contract basis . . . . . . 136-145 29 a Classi?cation of the contractor . . . . . . . . . . . . . 139 29 b Classi?cation of the principal . . . . . . . . . . . . . . 140-145 30 6. Government activities. . . . . . . . . . . . . . . . . . . . . . 146-147 30 7. Classi?cation of enterprises . . . . . . . . . . . . . . . . . . 148-149 31 8. Classi?cation of households . . . . . . . . . . . . . . . . . . 150-151 31 9. Changes in the classi?cation of units . . . . . . . . . . . . . 152-154 31 D.

Capturing information about the activity of units and coding it according to ISIC. . . . . . . . . . . . . . . . . . . . . . . . . . 155-157 32

Chapter

IV. Other topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158-198 33 A. Use of ISIC in establishing related national classi?cations. . . . 158-169 33 1. Aggregation and disaggregation of ISIC . . . . . . . . . . . 162-167 33 2. Level of international comparability. . . . . . . . . . . . . . 168-169 34 B. Use of dierent levels of the classi?cation for the presentation

of statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170-171 35

C. Relationship with other classi?cations. . . . . . . . . . . . . . . 172-192 35 1. General remarks. . . . . . . . . . . . . . . . . . . . . . . . . 172 35 2.

Relationship with product classi?cations: CPC, HS

and SITC . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173-175 36 3. Other derived and related activity classi?cations . . . . . . 176-184 36 a Derived classi?cations . . . . . . . . . . . . . . . . . . 179-181 37 b Related classi?cations . . . . . . . . . . . . . . . . . . 182-184 37 4. Relationship of other international classi?cations with

ISIC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185-192 38

D. Indexes to the classi?cation. . . . . . . . . . . . . . . . . . . . . 193-194 39 E.

Correspondence tables. . . . . . . . . . . . . . . . . . . . . . . . 195-197 40

F. Alternative aggregations for ISIC . . . . . . . . . . . . . . . . . . 198 40

Paragraphs Page

Contentsvii

Part two

BROAD AND DETAILED STRUCTURE

Chapter

I. Broad structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

II. detailed structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Part three

DETAILED STRUCTURE AND EXPLANATORY NOTES

Section

A.

Agriculture, forestry and fishing . . . . . . . . . . . . . . . . . . . . . . . . . . 65

B.

Mining and quarrying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

C.

Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

D. Electricity, gas, steam and air conditioning supply . . . . . . . . . . . . . . . . 165 E. Water supply; sewerage, waste management and remediation activities . . . . 167 F.

Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

G. Wholesale and retail trade; repair of motor vehicles and motorcycles . . . . . 179 H.

Transportation and storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194

I. Accommodation and food service activities . . . . . . . . . . . . . . . . . . . . 202 J. Information and communication . . . . . . . . . . . . . . . . . . . . . . . . . . 205 K.

Financial and insurance activities . . . . . . . . . . . . . . . . . . . . . . . . . 216

L.

Real estate activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222

M.

Professional, scientific and technical activities . . . . . . . . . . . . . . . . . . 223

N.

Administrative and support service activities . . . . . . . . . . . . . . . . . . . 232

O. Public administration and defence; compulsory social security. . . . . . . . . 243 P.

Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247

Q.

Human health and social work activities . . . . . . . . . . . . . . . . . . . . . 252

R. Arts, entertainment and recreation . . . . . . . . . . . . . . . . . . . . . . . . . 257 S. Other service activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 T. Activities of households as employers; undifferentiated goods- and services-producing activities of households for own use . . . . . . . . . . . . . 269 U. Activities of extraterritorial organizations and bodies . . . . . . . . . . . . . . 270

Part four

ALT E RN

ATIVE AGGREGATIONS

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199-202 273 A. Two alternative aggregations for SNA data reporting . . . . . . . . . . 203-216 274 1. High-level SNA/ISIC aggregation . . . . . . . . . . . . . . . . . . 204-208 274 2. Intermediate-level SNA/ISIC aggregation. . . . . . . . . . . . . . 209-216 275 B. Alternative aggregation for the information economy. . . . . . . . . . 217-222 277 1.

ICT sector de?nition. . . . . . . . . . . . . . . . . . . . . . . . . . 218-220 277

2. Content and media sector de?nition. . . . . . . . . . . . . . . . . 221-222 279

Paragraphs Page

International Standard Industrial Classification of All Economic Activities (ISIC), Revision 4viii C. Alternative aggregation for data reporting on the informal sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223-232 279 D.

Alternative aggregation for data reporting on the non-pro?t institutions sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233-237 282

Part ffve

CHANGES IN ISIC, REV.4

I. Methodological changes . . . . . . . . . . . . . . . . . . . . . . . . . 238-243 289

II. Structural changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244-260 289

Paragraphs Page

ix

Historical background

The original version of the International Standard Industrial Classification of All Eco nomic Activities (ISIC) 4 was adopted in 1948. In that connection, the Economic and Social Council adopted resolution 149 A (VII) of 27 August 1948, which read: ?e Economic and Social Council

Taking note

of the recommendation of the Statistical Commission regard ing the need for international comparability of economic statistics, and,

Taking note

of the International Standard Industrial Classi?cation of All Economic Activities which the Statistical Commission has developed with the advice and assistance of Member Governments, Recommends that all Member Governments make use of the International Standard Industrial Classi?cation of Economic Activities either by: a Adopting this system of classi?cation as a national standard, or b Rearranging their statistical data in accordance with this system for purposes of international comparability". Wide use has been made of ISIC both nationally and internationally in classify ing data according to kind of economic activity in the ?elds of economic statistics, such as for production or national income, employment, population and others. A number of countries have utilized ISIC as the basis for developing their national indus trial classi?cations. Substantial comparability has been attained between the industrial classi?cations of many other countries and ISIC by ensuring, as far as practicable, that the categories at detailed levels of national classi?cations ?tted into only one category of ISIC. An increasing number of countries have adapted their national activity clas si?cations or can provide statistical series according to ISIC. ?e United Nations, the United Nations Industrial Development Organization (UNIDO), the International Labour Organization (ILO), the Food and Agriculture Organization of the United Nations (FAO), the United Nations Educational, Scienti?c and Cultural Organization (UNESCO) and other international bodies use ISIC when publishing and analysing statistical data. Experience in the use of ISIC has revealed the need for periodic review of the structure and de?nition of its categories and underlying principles. Changes take place in the organization of economic activities and new types of economic activities become important, while new analytical requirements develop for data classi?ed according to kind of economic activity. Over the decades, continuing experience in the use of ISIC and the corresponding national classi?cations reveal aspects that should be ampli ?ed, clari?ed or improved in other ways. For these reasons, the Statistical Commission initiated reviews and revisions of ISIC in 1956, 1965, 1979 and again in 2000. While continuity, i.e., comparability between the revised and preceding versions of ISIC, has always been a major concern expressed by the Commission, the accumulating changes in the economic structure and production patterns around the world require a careful balancing of continuity with the need for relevance of ISIC and its comparability with other existing industry classi?cations. 4

Statistical papers, No. 4, Lake

Success, New York, 31 October

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