13-Jul-07 NACE: How the revision of a classification can affect quality of statistics Ana Franco.
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Transcript of 13-Jul-07 NACE: How the revision of a classification can affect quality of statistics Ana Franco.
13-Jul-07
NACE: How the revision of a classification can affect quality of statistics
Ana Franco
13-Jul-07 Name of the presentation
NACE a tool for comparing statistics at world level
The European Classification of Economic Activities (NACE) is the European reference framework for the production and the dissemination of statistics related to economic activities.
NACE is identical with, or an extension of, the ISIC (International Standard Industrial Classification of all Economic Activities - classification developed by the UN as a standard way of classifying economic activities). Also, the coding systems used in both classifications are, as far as possible, the same.
The main principle in ISIC and NACE is to code together enterprises if they produce the same type of goods or service or if they use similar processes (i.e. the same raw materials, process of production, skills or technology).
13-Jul-07 Name of the presentation
NACE: The revision process
At its thirtieth session in 1999, the United Nations Statistical Commission agreed that the ISIC should be revised every five years, thereby keeping the classifications relevant while avoiding major disruptions in time series. NACE has followed this revision round and NACE Rev. 2 entered into force in 2008.
The purpose and rationale for these revisions is to repair weaknesses in the classifications, to reflect changes in technology or economic organization, to respond to new and permanent demands for data and to achieve greater comparability or convergence among different classifications.
Focused work on the revision of ISIC/NACE started in 2001 and the regulation establishing the statistical classification of economic activities NACE Rev. 2 was adopted on the 20th December of 2006.
13-Jul-07 Name of the presentation
NACE: The revision process (stakeholders)
UN Statistical
Commission
Technical Subgroup
Statistical Programme Committee
NACE/CPA Working Group
Task force
UN Expert Group
UN EUROSTAT
13-Jul-07 Name of the presentation
Revision of NACE: an opportunity to improve quality
Relevance Accuracy Timeliness and punctuality Accessibility and clarity Comparability and coherence Cost and Burden
13-Jul-07 Name of the presentation
RelevanceDuring the process of revision of NACE/ISIC the opinion of
the users was carefully taken into account.
NACE Rev. 2
UN
World-wide consultation:
How: 3 rounds of questionnaires
To whom: 235 countries and international organizations worldwide
When: from 2001
EULarge consultation:-National Statistical Institutes (NSI’s)- European trade associations (FEBI’s)- European Commission- Eurostat- European Central Bank- And anybody else using the classification
FAO Working Party on Indicators of the Information Society
Association of Southeast Nations
Workshops in different regions of the world
Afristat
UN Technical Subgroup
NAICS/NACE convergence project
13-Jul-07 Name of the presentation
Relevance As one could expect in such a large operation of identification
of user needs, it has been impossible to take all wishes into account. Nevertheless, some general concerns were identified and the result is a revised classification with:
New groupings– Information and communication sector– water supply, sewerage, waste management and remediation
More tabulation categories for services– professional technical, and business services– administrative and support services– real estate, rental and leasing services– art, entertainment and recreation
More divisions ( to increase international comparability)– for new groupings and growing services – in manufacturing and construction– human health services
13-Jul-07 Name of the presentation
Accuracy
Correspondence between NACE Rev 1.1 and Rev.2
Rev 1.1 Rev.2
1 1196
Rev 1.1 Rev.2
a
b
c 1
d
e
86
Automat ic
Rev 1.1 Rev.2
a
1 b
c
Rev 1.1 Rev.2
a e
b f
c g
h
18
214
Manual
Good occasion to correct
errors!
13-Jul-07 Name of the presentation
Timeliness and punctuality
2001
Start of revision
Adoption of regulation
End-2006
Business registers updated
2008
-Business register-Labour Force Survey-Road freight survey- Structural Business Surveys- …
- Labour Cost Index- Job Vacancy survey- Inform. Soc.
2009 2010 2011
National Accounts
13-Jul-07 Name of the presentation
Accessibility and clarity
A dedicated web page which would contain all available information on NACE Rev.2:
1.1 the structure of NACE Rev. 2, 1.2 the introductory guidelines, 1.3 the explanatory notes for each code 1.4 the text of the Framework regulation 1.5 the Implementation regulation. 1.6 the correspondence tables between NACE Rev. 2 – NACE Rev. 1.1 and NACE
Rev. 1.1 - NACE Rev. 2 in different formats1.7 Five Handbooks to help National Statistical Institutes during the complex project of
the implementation of NACE Rev. 2• - Setting up an implementation plan for NACE Rev. 2• - Implementation of NACE Rev.2 in Business Registers• - Handbook on methodological aspects related to sampling designs and
weights estimations • - Handbook on back-casting• - Rules for classification of units outsourcing their production
A paper publication which will regroup the elements mentioned under 1.1 to 1.5.
13-Jul-07 Name of the presentation
Accessibility and clarity
A CD Rom containing the same information can be created at request
A general paper informing on the main changes brought by the new classification has been prepared. This information will be visible in the Eurostat web site and will contain a link to the dedicated web page above mentioned.
The SDDS files, detailed metadata files presented in a common format which are associated with the data base New Cronos containing all EU data published by Eurostat, will be revised informing the users on the changes in the activity classification and on the specific impact for the statistical domain.
13-Jul-07 Name of the presentation
Comparability (between geographical areas)
Among EU countries… Use of NACE is mandatory within the European
Statistical System: Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006
Although national versions allowed… And there are also:
– Explanatory notes– Introductory guidelines
13-Jul-07 Name of the presentation
Comparability (between geographical areas)
But also with the rest of the World:
Agreement signed by the heads of the statistical agencies of Canada, the European Union and the United States concerning a project on the convergence of NAICS and NACE
A taskforce consisting of experts from the participating parties have drawn up a list of changes to NACE and NAICS which may improve the convergence.
In addition, ISIC had taken into account these revisions to other major national industry classifications such as ANZSIC (Australia and New Zealand), JSIC (Japan) and NatSIC (China).
ISIC
NACE
NAICS (USA, Canada, Mexico)
13-Jul-07 Name of the presentation
Comparability between statistical domains
Data is published by Eurostat according to NACE in 33 different statistical domains
Solutions: – Dual coding– Back casting
2008
21
2009
3
2010
6
2011
3
13-Jul-07 Name of the presentation
Comparability over time
Discontinuity in historical statistics is to be expected in many statistical domains, both at European and national levels
Solutions: – Dual coding– Back casting– Correspondence tables
NACE Rev 1.1
NACE Rev.2
Sections 17 21
Divisions 62 88
Groups 224 272
Classes 514 615
1 to 1 196
n to 1 86
1 to n 18
n to m 214
Correspondences:
282
13-Jul-07 Name of the presentation
Coherence
ISIC
NACE
National versions of NACE
CPC
CPA
National versions of CPA
PRODCOM
National versions of
PRODCOM
HS
CN
SITC
Economic
Activities Products Goods
World level
EU level
Nat. Level
13-Jul-07 Name of the presentation
Cost and Burden
The revision of NACE will imply several operations in the Member States:
The setting up of the implementation plan The recoding of the Business Registers according to the new
NACE (or its national version) The adaptation of the statistical surveys (samples and
estimation techniques) The reconstruction of time series (double reporting, back-
casting) The changes of the reference database and related
dissemination issues The elaboration of the national version of NACE and the
adaptation of national legislations following the adoption of the Regulation establishing NACE
33%!
32%!
13-Jul-07 Name of the presentation
Conclusion
The revision of a classification, although a costly and heavy operation is absolutely needed and is a good opportunity to improve the quality of the date produced using it.
Relevance is for sure the quality component which more benefits in such a revision.
It is a good opportunity to improve geographical comparability
Accuracy can also be improved in the operation of updating of the register
A revision of a classification always entails breaks in the series,
Not all the statistical domains are able to use the new classification at the same time
In the transition period timeliness can undergo.
The information of the users shouldn't be neglected and it is important not only to provide information on the new classification but also on its impact for the data in the different statistical domains.