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NACE Classification review

NACE Classification review

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NACE Classification review

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  1. NACE Classification review Ana Franco Unit B5 - Data and metadata services; Standards

  2. The current version of the Statistical Classification of Economic Activities (NACE Rev. 2) dates from 2006. There were changes in the economic structures and organisations as well as technological developments that give rise to new activities and products. Several Member States and business associations have informally contacted Eurostat that some parts of the classification do not describe accurately the present economy. NAICS classification (used by USA, Canada and Mexico) is also under revision Review of NACE: Why?

  3. Stakeholders in the NACE review EUROSTAT Domain managers UNSD (ISIC) NACE review Other Commission services Member states European federations of industries Central banks

  4. Eurostat conducted a first consultation of the ESS Member States early 2018 (Standards WG) • 26 countries answered, 5 have not made any proposal • We received 395 proposals of change • The Standards Working Group members supported to launch the review of the current NACE Rev. 2. • The ESSC unanimously supported the review • A second consultation of the EU Member States was launched in May 2019. What has been done until now?Member States 1.

  5. A NSIs Task Force to work in the NACE revision was set up. 16 EU Member States + Switzerland have volunteered to participate (Denmark, Greece, Croatia, France, Ireland, Italy, Lithuania, Hungary, Malta, Netherlands, Austria, Poland, Slovenia, Finland, Sweden, United Kingdom and Switzerland) • The kick-off meeting of the Task force together with the Eurostat internal TF took place end of March 2019 and a first virtual meeting in May 2019 What have been done until now?Member States 2.

  6. Evaluate the proposals for changes in terms of feasibility and relevance such as clarifications or links to economic or labour market policy issues. • Propose concrete changes in the present NACE structure. • Elaborate a first draft of the revised NACE classification. • Revise the draft after a second round of consultations and prepare the final version of the NACE classification. • Propose improvements to the explanatory notes. • Prepare a correspondence table between NACE Rev. 2 and the revised NACE • Revise the existing manuals of implementation of the NACE. Mandate of the NACE review Task Force

  7. Assessment cycle of the change requests

  8. Eurostat has prepared a document for the 40th Meeting of the European Statistical System Committee that took place on the 16th May. In this document the reasons to start a NACE review, the procedure and the timetable were described and the Member States were requested to collaborate in this review. ESSC meeting

  9. 1. The ESSC unanimously supports the review of the NACE classification and confirmed the willingness to actively contribute to the assessment process. 2. The ESSC recognised the importance of coordinating the NACE review activities with all stakeholders. The need of early communicationto users was recognisedtoo. 3. The ESSC considered crucial to coordinate the review processof the NACE classification with the one of ISIC. Proactive support for both processes at national and European level was encouraged. Implementing a fully revised NACE in the National Accounts by 2024 and having the ISIC revision concluded in time would both be highly challenging. 4. The ESSC agreed that the final approach to the NACE review and the roadmap of implementation will be formulated when the stakeholder needs are clarified and taking into account the FRIBS implementation. Eurostat will report back on the progress to the ESSC in February 2020. ESSC meeting conclusions

  10. The importance to keep alignment between NACE and ISIC was unanimously requested • UNSD and the UN expert group on classifications were contacted • The mandate of the ISIC Technical sub group was changed in order to include the ISIC review • First meeting of the ISIC Technical sub group in June 2019 What has been done until now?UNSD

  11. AEU surveyquestionnaire was set up to gather information on needs for change in NACE from the other Commission services. • A similar questionnaire was used to gather the same type of information from the European Federations of Industries and the European System of Central Banks. What has been done until now?Commission services, European Federations of Industries and the European System of Central Banks

  12. Eurostat set up a dedicated MS Access database for recording all proposals received during the different consultations, structured by proposer, description of proposal, related NACE codes etc. • For each proposal there will be added the comments and conclusions by the NSI Task Force assessing the proposals • This database will serve as reference and “memory” for all discussions and conclusions related to the NACE review. Documentation of the change requests and their assessment

  13. All information related to the NACE review is centralized in a confluence site: Presentations on the ongoing work of the Task Force will be made in all relevant thematic ESS Working Groups. Communication