The North American Industry Classification System in the Current Employment Statistics Program

With the release of January 2018 data on February 2, 2018, the Current Employment Statistics (CES) program implemented publication changes related to annual sample review and updated the national nonfarm payroll series to the 2017 North American Industry Classification System (NAICS) from the NAICS 2012 basis. CES series changes resulting from the most recent annual review of sample size, coverage, and response rates are available on the CES New Series page at www.bls.gov/web/empsit/cesnewseries.htm. CES series changes resulting from the update to NAICS 2017 are detailed below.

Employment Situation News Release Table Changes

The CES series changes discussed on this page affected two industries contained in table B-1 of the Employment Situation. Exhibit A details the table B-1 changes.

Exhibit A. CES Industry Title Changes to Table B-1 of the Employment Situation
PreviousNew
CES Industry TitleCES Series IDCES Industry TitleCES Series ID
Not Seasonally AdjustedSeasonally AdjustedNot Seasonally AdjustedSeasonally Adjusted
Department StoresCEU4245210001CES4245210001Department StoresCEU4245220001CES4245220001
Other general merchandise storesCEU4245290001CES4245290001General merchandise stores, including warehouse clubs and supercentersCEU4245230001CES4245230001

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Update to NAICS 2017

The CES program updated the national nonfarm payroll series to the 2017 North American Industry Classification System (NAICS) from the NAICS 2012 basis with the February 2, 2018 Employment Situation release. This change is in accordance with the final decision from the Office of Management and Budget (OMB) on recommendations put forth by its Economic Classification Policy Committee (ECPC) in the Federal Register, Volume 81, Number 152. For more information on OMB s decision and directive on the NAICS 2017 update, see www.gpo.gov/fdsys/pkg/FR-2015-08-04/pdf/2015-19022.pdf. For more information on NAICS 2012 and NAICS 2017 classifications, see www.census.gov/epcd/www/naics.html. For more information on other Federal Register notices involving NAICS, see www.census.gov/eos/www/naics/federal_register_notices/fedregister.html.

This conversion resulted in minor revisions reflecting content and coding changes within the retail trade, information, financial activities, and professional and business services major industry sectors, as well as a number of consolidations within the durable goods manufacturing, retail trade, and information major industry sectors. Several industry titles and descriptions were also updated. Approximately 4 percent of CES employment was reclassified into different industries as a result of the revision.

Some of the changes associated with the NAICS 2017 update impacted levels of detail not published by CES; therefore, only cases where CES industries were impacted are discussed in detail here. Only the following directly estimated data types are noted in the following tables: employment of all employees (AE), AE average weekly hours (AE AWH), AE average hourly earnings (AE AHE), employment of production and nonsupervisory employees (PE), PE average weekly hours (PE AWH), PE average hourly earnings (PE AHE), and employment of women employees (WE). Directly estimated data types other than AE are collectively called non-AE data types.

For instances where reconstructions were necessary, ratios of employment moving from old CES industries based on NAICS 2012 to new CES industries based on NAICS 2017 were calculated for March 2017 and were applied to historical CES data. These ratios were calculated by assigning both a NAICS 2012-based CES industry and a NAICS 2017-based CES industry to individual report-level data from the longitudinal database (LDB) from the Quarterly Census of Employment and Wages (QCEW) which is used as the CES sample frame. The March 2017 LDB employment was summed by old CES industry based on NAICS 2012 and by new CES industry based on NAICS 2017. Forward ratios were created by dividing the amount of each old NAICS 2012-based CES industry moving to a new NAICS 2017-based CES industry by its total for the old CES industry (see table 4 for AE ratios and table 9 for non-AE ratios). Reverse ratios were created by dividing the amount of each old NAICS 2012-based CES industry moving to a new NAICS 2017-based CES industry by its total for the new CES industry (see table 5 for AE reverse ratios and table 10 for non-AE reverse ratios). For more information about previous CES NAICS conversions and how CES industry codes relate to NAICS codes, see www.bls.gov/ces/naics/home.htm.

AE series are published at a more detailed level than non-AE series. Forward ratios were held constant and applied to each monthly CES employment estimate for the entire history of the series, usually back to 1990, to determine the amount of employment moving from a NAICS 2012 CES industry to a NAICS 2017 CES industry. Average weekly hours and average hourly earnings were recalculated by applying forward ratios to the amount of old total hours and old total payroll to move the correct amount of hours or earnings into the new CES industry. Total hours and total earnings were then averaged using the new employment levels. More information about the calculation of CES estimates for employment, hours, and earnings estimates is available in the CES Technical Notes under Estimation Methods.

The conversion from NAICS 2012 to NAICS 2017 affected CES industry codes in several ways. Some CES series were converted as a whole from their NAICS 2012 industry code to their new NAICS 2017 industry code. Some CES series were combined with other series because their underlying NAICS codes were combined. Other CES series were split into more detailed CES series because their NAICS codes were changed to accommodate new distinct industries. Finally, some CES series are no longer published at the same level of detail under NAICS 2017. Examples of each of these changes are outlined below.

AE Series Changes Due to NAICS 2017 Update:

Non-AE Series Changes Due to NAICS 2017 Update:

AE Series Changes Due to NAICS 2017 Update

Some AE series were partially or completely combined with other series. For example, in table 1 the CES industry department stores, except discount (42-452111) was combined with a portion of discount department stores (42-452112) to create the new CES industry department stores (42-452200). This is because the associated NAICS 2012 industry code 452111 became NAICS 2017 industry code 452210, and part of NAICS 2012 industry code 452112 became NAICS 2017 industry code 452210. The remainder of NAICS 2012 industry code 452112 became NAICS 2017 industry code 452311, along with all of NAICS 2012 industry code 452910.

Table 1. New AE series as a result of reclassification of NAICS 2012 to NAICS 2017
NAICS 2012Reclassification
NAICS CodeCES Industry CodeCES Industry Title

452111

42-452111Department stores, except discountCombined into new NAICS 2017 department stores (42-452200)

452112

42-452112Discount department storesNew NAICS 2017 department stores (42-452200) combined all of department stores, except discount (42-452111) and a portion of discount department stores (42-452112)

452112

42-452112Discount department storesNew NAICS 2017 warehouse clubs and supercenters (42-452311) combined a portion of discount department stores (42-452112) and all of warehouse clubs and supercenters (42-452910)

45291

42-452910Warehouse clubs and supercentersCombined into new NAICS 2017 warehouse clubs and supercenters (42-452311)

45299

42-452990All other general merchandise storesMoved into new NAICS 2017 all other general merchandise stores (42-452319)

454112

42-454112Electronic shopping and electronic auctionsCombined into new NAICS 2017 electronic shopping and mail-order houses (42-454100)

454113

42-454113Mail-order housesCombined into new NAICS 2017 electronic shopping and mail-order houses (42-454100)

5171

50-517100Wired telecommunications carriersMoved into new NAICS 2017 wired telecommunications carriers (50-517311)

5172

50-517200Wireless telecommunications carriers (except satellite)Moved into new NAICS 2017 wireless telecommunications carriers, except satellite (50-517312)

53223

55-532230Video tape and disc rentalCombined into new NAICS 2017 consumer goods rental (55-532200)

53223

55-532230Video tape and disc rentalMoved into new NAICS 2017 video tape and disc rental (55-532282)

53229

55-532290Miscellaneous consumer goods rentalCombined into new NAICS 2017 consumer goods rental (55-532200)

532291

55-532291Home health equipment rentalMoved into new NAICS 2017 home health equipment rental (55-532283)

541711

60-541711Biotechnology researchNew NAICS 2017 research and development in biotechnology, except nanobiotechnology (60-541714) is a portion of biotechnology research (60-541711)

541711

60-541711Biotechnology researchNew NAICS 2017 research and development in nanotechnology (60-541713) combined a portion of biotechnology research (60-541711) and a portion of physical, engineering, and life sciences research (60-541712)

541712

60-541712Physical, engineering, and life sciences researchNew NAICS 2017 research and development in nanotechnology (60-541713) combined a portion of biotechnology research (60-541711) and a portion of physical, engineering, and life sciences research (60-541712)

541712

60-541712Physical, engineering, and life sciences researchNew NAICS 2017 research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology (60-541715) is a portion of physical, engineering, and life sciences research (60-541712)

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Table 2 shows AE series that had changes in scope due to the conversion from NAICS 2012 to NAICS 2017. These new CES industries combined series that were previously published separately or as part of another series. For example, the new CES industry research and development in nanotechnology (60-541713) combined a portion of the old CES industry biotechnology research (60-541711) and a portion of the old CES industry physical, engineering, and life sciences research (60-541712). The remaining part of the old NAICS 2012 CES industry biotechnology research (60-541711) became the new CES industry research and development in biotechnology, except nanobiotechnology (60-541714). The remaining part of the old NAICS 2012 CES industry physical, engineering, and life sciences research (60-541712) became the new NAICS 2017 CES industry research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology (60-541715).

Table 2. Change in scope of AE series as a result of NAICS 2017
NAICS 2017Reclassification
NAICS CodeCES Industry CodeCES Industry Title

4522

42-452200Department storesThe new NAICS 2017 series department stores (42-452200) combined all of department stores, except discount (42-452111) and a portion of discount department stores (42-452112)

452311

42-452311Warehouse clubs and supercentersThe new NAICS 2017 series warehouse clubs and supercenters (42-452311) combined a portion of department stores, except discount (42-452111) and all of warehouse clubs and supercenters (42-452910)

4541

42-454100Electronic shopping and mail-order housesThe new NAICS 2017 series electronic shopping and mail-order houses (42-454100) combined electronic shopping and electronic auctions (42-454112) and mail-order houses (42-454113)

5322

55-532200Consumer goods rentalThe new NAICS 2017 series consumer goods rental (55-532200) combined video tape and disc rental (55-532230) and miscellaneous consumer goods rental (55-532290)

541713

60-541713Research and development in nanotechnologyA portion of biotechnology research (60-541711) moved to into new NAICS 2017 research and development in nanotechnology (60-541713). The rest was reclassified into biotechnology, except nanobiotechnology (60-541714).

541713

60-541713Research and development in nanotechnologyThe new NAICS 2017 series research and development in nanotechnology (60-541713) is a portion of biotechnology research (60-541711) and a portion of physical, engineering, and life sciences research (60-541712)

541714

60-541714Research and development in biotechnology, except nanobiotechnologyThe new NAICS 2017 series research and development in biotechnology, except nanobiotechnology (60-541714) is a portion of biotechnology research (60-541711)

541715

60-541715Research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnologyThe new NAICS 2017 series research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology (60-541715) is a portion of physical, engineering, and life sciences research (60-541712)

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Table 3 shows AE series that will no longer be published under NAICS 2017. For example, NAICS 2017 combined electronic shopping and electronic auctions (NAICS 454112) and mail-order houses (NAICS 454113) into electronic shopping and mail-order houses (NAICS 454110). The two CES industries associated with the NAICS 2012 industries are 42-454112 and 42-454113. These were deleted and only the higher level CES series, electronic shopping and mail-order houses (42-454100) is now published.

Table 3. Discontinued NAICS 2012 AE series
NAICS 2012Next Highest Published Level (CES Industry Code)
NAICS CodeCES Industry CodeCES Industry Title

452111

42-452111Department stores, except discountDepartment stores (42-452200)

45291

42-452910Warehouse clubs and supercentersWarehouse clubs and supercenters (42-452311)

454112

42-454112Electronic shopping and electronic auctionsElectronic shopping and mail-order houses (42-454100)

454113

42-454113Mail-order housesElectronic shopping and mail-order houses (42-454100)

53223

55-532230Video tape and disc rentalConsumer goods rental (55-532200)

53229

55-532290Miscellaneous consumer goods rentalConsumer goods rental (55-532200)

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Table 4 shows the proportion of AE employment that was moved from an old CES industry code based on NAICS 2012 to a new CES industry code based on NAICS 2017. Industries that moved directly and completely from a NAICS 2012 CES industry to a NAICS 2017 CES industry have a ratio of 100. NAICS 2012 CES industries that moved only a portion of their employment from the old NAICS 2012 CES industry to a new NAICS 2017 CES industry have ratios of less than 100. Old NAICS 2012 CES industry codes with ratios of less than 100 are listed multiple times to account for the movement of all of their employment. For example, 98.3 percent of discount department stores (42-452112) moved into the new NAICS 2017 CES industry department stores (42-452200). The remaining 1.7 percent moved into the new CES industry warehouse clubs and supercenters (42-452311).

Table 4. NAICS 2012 to NAICS 2017 AE employment ratios
NAICS 2012NAICS 2017Ratio
CES Industry CodeCES Industry TitleCES Industry CodeCES Industry Title

42-452111

Department stores, except discount42-452200Department stores100

42-452112

Discount department stores42-452200Department stores98.3

42-452112

Discount department stores42-452311Warehouse clubs and supercenters1.7

42-452910

Warehouse clubs and supercenters42-452311Warehouse clubs and supercenters100

42-452990

All other general merchandise stores42-452319All other general merchandise stores100

42-454112

Electronic shopping and electronic auctions42-454100Electronic shopping and mail-order houses100

42-454113

Mail-order houses42-454100Electronic shopping and mail-order houses100

50-517100

Wired telecommunications carriers50-517311Wired telecommunications carriers100

50-517200

Wireless telecommunications carriers (except satellite)50-517312Wireless telecommunications carriers, except satellite100

55-532230

Video tape and disc rental55-532200Consumer goods rental100

55-532290

Miscellaneous consumer goods rental55-532200Consumer goods rental100

55-532230

Video tape and disc rental55-532282Video tape and disc rental100

55-532291

Home health equipment rental55-532283Home health equipment rental100

60-541711

Biotechnology research60-541713Research and development in nanotechnology4.9

60-541712

Physical, engineering, and life sciences research60-541713Research and development in nanotechnology3.5

60-541711

Biotechnology research60-541714Research and development in biotechnology, except nanobiotechnology95.1

60-541712

Physical, engineering, and life sciences research60-541715Research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology96.5

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Table 5 shows the proportion of AE employment that was moved to a new CES industry based on NAICS 2017 that came from an old CES industry based on NAICS 2012. For example, 37.8 percent of the new NAICS 2017 CES industry department stores (42-452200) came from the old NAICS 2012 CES industry department stores, except discount (42-452111). The remaining 62.2 percent of the new NAICS 2017 CES industry department stores (42-452200) came from the old NAICS 2012 CES industry discount department stores (42-452112).

Table 5. NAICS 2017 to NAICS 2012 AE employment ratios
NAICS 2017NAICS 2012Ratio
CES Industry CodeCES Industry TitleCES Industry CodeCES Industry Title

42-452200

Department stores42-452111Department stores, except discount37.8

42-452200

Department stores42-452112Discount department stores62.2

42-452311

Warehouse clubs and supercenters42-452112Discount department stores0.9

42-452311

Warehouse clubs and supercenters42-452910Warehouse clubs and supercenters99.1

42-452319

All other general merchandise stores42-452990All other general merchandise stores100

42-454100

Electronic shopping and mail-order houses42-454112Electronic shopping and electronic auctions66.8

42-454100

Electronic shopping and mail-order houses42-454113Mail-order houses33.2

50-517311

Wired telecommunications carriers50-517100Wired telecommunications carriers100

50-517312

Wireless telecommunications carriers, except satellite50-517200Wireless telecommunications carriers (except satellite)100

55-532200

Consumer goods rental55-532230Video tape and disc rental7.3

55-532200

Consumer goods rental55-532290Miscellaneous consumer goods rental92.7

55-532282

Video tape and disc rental55-532230Video tape and disc rental100

55-532283

Home health equipment rental55-532291Home health equipment rental100

60-541713

Research and development in nanotechnology60-541711Biotechnology research34.9

60-541713

Research and development in nanotechnology60-541712Physical, engineering, and life sciences research65.1

60-541714

Research and development in biotechnology, except nanobiotechnology60-541711Biotechnology research100

60-541715

Research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology60-541712Physical, engineering, and life sciences research100

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Non-AE Series Changes Due to NAICS 2017 Update

Some non-AE series were partially or completely combined with other series, just like their AE counterparts, while other series affected for AE were not affected for non-AE. For instance, in table 6 the old NAICS 2012 CES industries department stores, except discount (42-452111) and discount department stores (42-452112) do not appear because non-AE data types are not published at the same level. Instead, non-AE data types are published for general merchandise stores (42-452000) which was not affected by NAICS 2017 changes.

Table 6. New non-AE series as a result of reclassification of NAICS 2012 to NAICS 2017
NAICS 2012Reclassification
NAICS CodeCES Industry CodeCES Industry Title

454112

42-454112Electronic shopping and electronic auctionsCombined into new NAICS 2017 electronic shopping and mail-order houses (42-454100)

454113

42-454113Mail-order housesCombined into new NAICS 2017 electronic shopping and mail-order houses (42-454100)

5171

50-517100Wired telecommunications carriersMoved into new NAICS 2017 wired telecommunications carriers (50-517311)

5172

50-517200Wireless telecommunications carriers (except satellite)Moved into new NAICS 2017 wireless telecommunications carriers, except satellite (50-517312)

532291

55-532291Home health equipment rentalMoved into new NAICS 2017 home health equipment rental (55-532283)

541711

60-541711Biotechnology researchNew NAICS 2017 research and development in biotechnology, except nanobiotechnology (60-541714) is a portion of biotechnology research (60-541711)

541711

60-541711Biotechnology researchNew NAICS 2017 research and development in nanotechnology (60-541713) combined a portion of biotechnology research (60-541711) and a portion of physical, engineering, and life sciences research (60-541712)

541712

60-541712Physical, engineering, and life sciences researchNew NAICS 2017 research and development in nanotechnology (60-541713) combined a portion of biotechnology research (60-541711) and a portion of physical, engineering, and life sciences research (60-541712)

541712

60-541712Physical, engineering, and life sciences researchNew NAICS 2017 research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology (60-541715) is a portion of physical, engineering, and life sciences research (60-541712)

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Table 7 shows non-AE series that had changes in scope due to the conversion from NAICS 2012 to NAICS 2017. Again, these series reflect the same changes as their AE counterparts, but at less detailed levels, and some series affected for AE are not affected for non-AE. For example, in table 7 the old NAICS 2012 CES industry video tape and disc rental (55-532230) does not appear because non-AE data types are not published at the same level. Instead, non-AE data types are published for consumer goods rental (55-532200) which was not affected by NAICS 2017 changes.

Table 7. Change in scope of non-AE series as a result of NAICS 2017
NAICS 2017Reclassification
NAICS CodeCES Industry CodeCES Industry Title

4541

42-454100Electronic shopping and mail-order housesThe new NAICS 2017 series electronic shopping and mail-order houses (42-454100) combined electronic shopping and electronic auctions (42-454112) and mail-order houses (42-454113)

541713

60-541713Research and development in nanotechnologyThe new NAICS 2017 series research and development in nanotechnology (60-541713) is a portion of biotechnology research (60-541711) and a portion of physical, engineering, and life sciences research (60-541712)

541714

60-541714Research and development in biotechnology, except nanobiotechnologyThe new NAICS 2017 series research and development in biotechnology, except nanobiotechnology (60-541714) is a portion of biotechnology research (60-541711)

541715

60-541715Research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnologyThe new NAICS 2017 series research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology (60-541715) is a portion of physical, engineering, and life sciences research (60-541712)

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Table 8 shows non-AE series that are no longer published under NAICS 2017. Some AE series that were deleted were already not published for non-AE series, and therefore, were unaffected by NAICS 2017 deletions for non-AE. For example, the old NAICS 2012 CES industry warehouse clubs and supercenters (42-452910) was deleted for AE, and its employment was moved into a new NAICS 2017 CES industry. It is already not published for non-AE series, and, therefore, does not appear in table 8.

Table 8. Discontinued non-AE series as a result of NAICS 2017
NAICS 2012Next Highest Published Level (CES Industry Code)
NAICS CodeCES Industry CodeCES Industry Title

454112

42-454112Electronic shopping and electronic auctionsElectronic shopping and mail-order houses (42-454100)

454113

42-454113Mail-order housesElectronic shopping and mail-order houses (42-454100)

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Table 9 shows the proportion of non-AE employment that was moved from an old CES industry code based on NAICS 2012 to a new CES industry code based on NAICS 2017. Industries that moved directly and completely from an old NAICS 2012 CES industry to a new NAICS 2017 CES industry have a ratio of 100. Old NAICS 2012 CES industries that moved only a portion of their employment from the old NAICS 2012 CES industry to a new NAICS 2017 CES industry have ratios of less than 100. Old NAICS 2012 CES industry codes with ratios of less than 100 are listed multiple times to account for the movement of all of their employment. For instance, 4.9 percent of biotechnology research (60-541711) moved into the new NAICS 2017 CES industry research and development in nanotechnology (60-541713). The remaining 95.1 percent moved into the new NAICS 2017 CES industry research and development in biotechnology, except nanobiotechnology (60-541714).

Table 9. NAICS 2012 to NAICS 2017 non-AE employment ratios
NAICS 2012NAICS 2017Ratio
CES Industry CodeCES Industry TitleCES Industry CodeCES Industry Title

42-454112

Electronic shopping and electronic auctions42-454100Electronic shopping and mail-order houses100

42-454113

Mail-order houses42-454100Electronic shopping and mail-order houses100

50-517100

Wired telecommunications carriers50-517311Wired telecommunications carriers100

50-517200

Wireless telecommunications carriers (except satellite)50-517312Wireless telecommunications carriers, except satellite100

55-532291

Home health equipment rental55-532283Home health equipment rental100

60-541711

Biotechnology research60-541713Research and development in nanotechnology4.9

60-541712

Physical, engineering, and life sciences research60-541713Research and development in nanotechnology3.5

60-541711

Biotechnology research60-541714Research and development in biotechnology, except nanobiotechnology95.1

60-541712

Physical, engineering, and life sciences research60-541715Research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology96.5

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Table 10 shows the proportion of non-AE employment that was moved to a new CES industry based on NAICS 2017 that came from an old CES industry based on NAICS 2012. For example, 66.8 percent of the new NAICS 2017 CES industry electronic shopping and mail-order houses (42-454100) came from the old NAICS 2012 CES industry electronic shopping and electronic auctions (42-454112). The remaining 33.2 percent of the new NAICS 2017 CES industry electronic shopping and mail-order houses (42-454100) came from the old NAICS 2012 CES industry mail-order houses (42-454113).

Table 10. NAICS 2017 to NAICS 2012 non-AE employment ratios
NAICS 2017NAICS 2012Ratio
CES Industry CodeCES Industry TitleCES Industry CodeCES Industry Title

42-454100

Electronic shopping and mail-order houses42-454112Electronic shopping and electronic auctions66.8

42-454100

Electronic shopping and mail-order houses42-454113Mail-order houses33.2

50-517311

Wired telecommunications carriers50-517100Wired telecommunications carriers100

50-517312

Wireless telecommunications carriers, except satellite50-517200Wireless telecommunications carriers (except satellite)100

55-532283

Home health equipment rental55-532291Home health equipment rental100

60-541713

Research and development in nanotechnology60-541711Biotechnology research34.9

60-541713

Research and development in nanotechnology60-541712Physical, engineering, and life sciences research65.1

60-541714

Research and development in biotechnology, except nanobiotechnology60-541711Biotechnology research100

60-541715

Research and development in the physical, engineering, and life sciences, except nanotechnology and biotechnology60-541712Physical, engineering, and life sciences research100

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Last Modified Date: August 23, 2019