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NAICS Primer

by Chloe Campbell
March 2017

Editor's note: I apologize. I switched the January and March articles. Here is the background article to clarify the series.

The Quarterly Census of Employment and Wages (QCEW) is a program managed by the Bureau of Labor Statistics. Every quarter analysts with the Minnesota Department of Employment and Economic Development (DEED), working on the QCEW program, use employment and wage information reported to the State of Minnesota’s Unemployment Insurance (UI) program to produce a comprehensive summary of wage and employment information. Wage and employment data are also collected and tabulated on federal employees covered under the Unemployment Compensation for Federal Employees (UCFE) program. This information is made available to the public and includes data on the number of establishments, monthly employment, and quarterly wages by NAICS industry sector, by county and community, and by ownership sector for the entire state. The ability of the QCEW program to provide this detailed and accurate information rests partly on the program’s reliance on the North American Industry Classification System (NAICS).

NAICS is the standard used by federal and state statistical agencies to classify business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy ( http://www.census.gov/eos/www/naics/). NAICS relies on numerical codes to classify establishments. There are a total of 20 NAICS sectors (see table below). Within the 20 NAICS sectors, there are 1,170 6-digit subsectors. The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry ( https://www.census.gov/eos/www/naics/).

Over the course of 2017 the Minnesota Employment Review will spotlight each of the NAICS sectors and provide a detailed description of all 20 sectors for the reader. The goal is to help readers understand how industry classifications are structured and what each industry sector includes both in Minnesota and across the nation.

 

Code

NAICS Sectors

Code

NAICS Sectors

11

Agriculture, Forestry, Fishing, and Hunting

53

Real Estate and Rental and Leasing

21

Mining

54

Professional, Scientific, and Technical Services

22

Utilities

55

Management of Companies and Enterprises

23

Construction

56

Administrative and Support and Waste Management and Remediation Services

31-33

Manufacturing

61

Educational Services

42

Wholesale Trade

62

Health Care and Social Assistance

44-45

Retail Trade

71

Arts, Entertainment, and Recreation

48-49

Transportation and Warehousing

72

Accommodation and Food Services

51

Information

81

Other Services (except Public Administration)

52

Finance and Insurance

92

Public Administration

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