is the international reference classification of productive activities. Its main tries around the world have used ISIC as their national activity classification or have.
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ST/ESA/STAT/SER.M/4/Rev.4 UNITED NATIONS PUBLICATION Sales No. E.08.XVII.25 ISBN: 978-92-1-161518-0Copyright United Nations, 2008 All rights reserved Printed in United Nations, New York Department of Economic and Social A˜airs 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 ficountryfl as used in this publication also refers, as appropriate, to ter -ritories or areas. ˜e designations fideveloped regionsfl and fideveloping regionsfl 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.
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iiiPreface 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 re˛ect current economic phenomena. A new section entitled fiInformation and communicationfl (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 O˜cial 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).
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vContents Page Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iiiHistorical background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ixAcknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xii Support for ISIC users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Acronyms and abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiv Part one INTRODU CTIONChapter Paragraphs Page I. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Œ21 3 II. ˜e underlying principles of the classi˚cation . . . . . . . . . . . . 22Œ54 7A. Purpose and nature of the classi˚cation . . . . . . . . . . . . . . 22Œ37 71. General considerations . . . . . . . . . . . . . . . . . . . . . 22Œ27 72. Scope of the classi˚cation . . . . . . . . . . . . . . . . . . . . 28Œ29 83. Di˝erences from other types of classi˚cations . . . . . . . . 30Œ37 9B. Principles used in constructing the classi˚cation . . . . . . . . . 38Œ45 10C. Structure and coding system of the classi˚cation . . . . . . . . . 46Œ54 11 III. Application of the classi˚cation . . . . . . . . . . . . . . . . . . . . . 55Œ157 13A. Principal, secondary and ancillary activities . . . . . . . . . . . . 55Œ63 13B. Statistical units . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Œ102 141. General remarks . . . . . . . . . . . . . . . . . . . . . . . . . 64Œ75 14(a) Legal entities . . . . . . . . . . . . . . . . . . . . . . . 71Œ72 15(b) Institutional units . . . . . . . . . . . . . . . . . . . . . 73Œ75 152. Statistical units in the System of National Accounts . . . . . 76Œ83 16(a) Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . 77Œ79 16(b) Establishment . . . . . . . . . . . . . . . . . . . . . . . 80Œ83 163. Other statistical units . . . . . . . . . . . . . . . . . . . . . . 84Œ89 17(a) Kind-of-activity unit . . . . . . . . . . . . . . . . . . . 85 17(b) Local unit . . . . . . . . . . . . . . . . . . . . . . . . . 86Œ87 17(c) Unit of homogeneous production . . . . . . . . . . . 88Œ89 174. Delineating statistical units . . . . . . . . . . . . . . . . . . . 90Œ99 185. National di˝erences in selecting statistical units . . . . . . . 100Œ102 19C. Classi˚cation of statistical units . . . . . . . . . . . . . . . . . . 103Œ154 201. General guidelines . . . . . . . . . . . . . . . . . . . . . . . . 103Œ112 20(a) Value-added substitutes . . . . . . . . . . . . . . . . . 107Œ109 20(b) Problems with output substitutes . . . . . . . . . . . . 110Œ111 21(c) Problems with input substitutes . . . . . . . . . . . . . 112 21
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Contents vii Part two BRO AD AND D ETAILED STRU CTUREChapter I. Broad structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 II. Detailed structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Part three DETAILED STRU CTURE AND EXPLANATORY NOT ESSection A. Agriculture, forestry and fishing . . . . . . . . . . . . . . . . . . . . . . . . . . 65B. Mining and quarrying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79C. Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85D. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222M. 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 ERNATIVE AGGREGATIONSOverview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199Œ202 273A. Two alternative aggregations for SNA data reporting . . . . . . . . . . 203Œ216 2741. High-level SNA/ISIC aggregation . . . . . . . . . . . . . . . . . . 204Œ208 2742. Intermediate-level SNA/ISIC aggregation . . . . . . . . . . . . . . 209Œ216 275B. Alternative aggregation for the information economy . . . . . . . . . . 217Œ222 2771. ICT sector de˚nition . . . . . . . . . . . . . . . . . . . . . . . . . . 218Œ220 2772. Content and media sector de˚nition . . . . . . . . . . . . . . . . . 221Œ222 279 Paragraphs Page
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International Standard Industrial Classi˜cation of All Economic Activities (ISIC), Revision 4 viii C. Alternative aggregation for data reporting on the informal sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223Œ232 279D. Alternative aggregation for data reporting on the non-pro˚t institutions sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233Œ237 282Part ˜ve CH ANG ES IN ISIC, RE V.4 I. Methodological changes . . . . . . . . . . . . . . . . . . . . . . . . . 238Œ243 289 II. Structural changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244Œ260 289 Paragraphs Page
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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: fi˜e Economic and Social Council ,fiTaking note of the recommendation of the Statistical Commission regard -ing the need for international comparability of economic statistics, and, fiTaking 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, fiRecommends that all Member Governments make use of the International Standard Industrial Classi˚cation of Economic Activities either by: fi(a) Adopting this system of classi˚cation as a national standard, or fi(b) Rearranging their statistical data in accordance with this system for purposes of international comparabilityfl. 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 1949.
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International Standard Industrial Classi˜cation of All Economic Activities (ISIC), Revision 4 x˜e ˚rst revision of ISIC (ISIC, Rev.1) was issued in 1958, a˙er having been considered by the Statistical Commission at its tenth session. 5 ˜e second revision (ISIC, Rev.2) was issued in 1968 a˙er proposals for the revision had been considered and approved by the Commission at its ˚˙eenth session, in 1968. 6 ˜e third revision of ISIC (ISIC, Rev.3) was considered and approved by the Commission at its twenty -˚˙h session, in 1989, and issued in 1990. 7 ˜e update to the third revision (ISIC, Rev.3.1) was considered and approved by the Commission at its thirty-third session, in 2002, and issued in 2004. 8˜e third and fourth revisions of ISIC put increased emphasis on harmoniza -tion with other activity classi˚cations and product classi˚cations, adding considerable complexity and constraints that did not apply in earlier revisions of ISIC. As ISIC occupies a central position in the international comparison and analysis of a wide range of statistics, a great deal of attention was devoted to ensuring that ISIC would be compatible with both the economic structure and the statistical practice and needs of the di˝erent countries of the world. Both revisions have also introduced an increas – ing level of detail, especially in the part dealing with service activities, re˛ecting the growth of this sector of the economy in most countries of the world. In addition, har -monization with other classi˚cations has improved the usefulness of ISIC for many analytical and descriptive purposes, such as within the context of the extended elabo – ration of services in the Central Product Classi˚cation (CPC). The fourth revision of ISIC In the years since the publication of the third revision of ISIC, the economic structure in many countries of the world has changed at an unprecedented rate. The emergence of new technologies and new divisions of labour between organizations has created new types of activities and new forms of industries, posing a challenge for both pro -viders and users of statistical data. In response to their growing demands, the Expert Group on International Economic and Social Classifications, at its fourth meeting in 1999, considered the need for a revision of ISIC to better reflect changed structures and analytical requirements. Realizing that a full revision would require a longer time to complete, the Expert Group recommended an update to the third revision of ISIC, which became Revision 3.1 scheduled for 2002, to address some smaller immediate concerns regarding the classification and at the same time start preparation for the fourth revision of ISIC, which would be completed in 2006. ˜e objectives of the fourth revision of ISIC were formulated in terms of improv -ing and strengthening its relevance and comparability with other classi˚cations, while considering its continuity. Relevance re˛ected the need to incorporate new economic production structures and activities, while comparability determined the identi˚ed need for a convergence of the Australian and New Zealand Standard Industrial Clas – si˚cation (ANZSIC), the General Industrial Classi˚cation of Economic Activities within the European Communities (NACE), the North American Industry Classi˚ca -tion System (NAICS) and other activity classi˚cations used around the world. ˜is underscored the realization that comparability should be a very important factor for the fourth revision of ISIC. Continuity re˛ected the important restriction that changes should only be made where the bene˚ts in terms of relevance or comparability out – weighed the costs in terms of changes made to the previous versions of the classi -˚cation. In later stages of the revision process, it became more and more clear that continuity was an important element for many countries. 5 International Standard Industrial Classi˚cation of All Economic Activities , Statistical Papers, Series M, No. 4, Rev.1 United Nations publication, Sales No. E.58.XVII. 6 International Standard Industrial Classi˚cation of All Economic Activities , Statistical Papers, Series M, No. 4, Rev.2 (United Nations publication, Sales No. E.68.XVII.8). 7 International Standard Industrial Classi˚cation of All Economic Activities , Statistical Papers, Series M, No. 4, Rev.3 (United Nations publication, Sales No. E.90.XVII.1). 8 International Standard Industrial Classi˚cation of All Economic Activities , Statistical Papers, Series M, No. 4, Rev.3.1 (United Nations publication, Sales No. E.03.XVII.4).
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