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Part II--Proposed New Industry Structure for Educational Services …
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Language: english
Created: Mon Jun 3 09:18:25 1996
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Part II--Proposed New Industry Structure for Educational Services
Section A--NAICS Structure
North American Industry Classification System
(NAICS)
Agreement Number 12
This Document represents the proposed agreement on the structure of the North American
Industry Classification System (NAICS) for the following subsector:
Educational Services
The detailed NAICS structure along with a brief description of the structure is attached
(Attachments 1 and 2). Each country agrees to release a copy of the proposed NAICS
structure to interested data users. Comments received will be shared among the countries and
additional discussions will be held before a final decision on the structure is made. Each
country may add additional detailed industries, below the 4-digit level of NAICS, as
necessary to meet national needs, so long as this additional detail aggregates to a 4-digit
NAICS level in order to ensure full comparability among the three countries. This NAICS
structure was presented and provisionally accepted at the NAICS Committee meeting held on
September 27, 1995 - September 29, 1995 in Mexico City, Mexico.
Accepted Signature Date
Canada /S/ Jacob Ryten 9/29/95
Mexico /S/ Enrique Ordaz 9/29/95
United States /S/ Jack E. Triplett 9/29/95
ATTACHMENT 1--NAICS STRUCTURE
XX Educational Services
XXX Elementary and Secondary Schools
XXXX Elementary and Secondary Schools
XXX Junior Colleges
XXXX Junior Colleges
XXX Colleges, Universities, and Professional Schools
XXXX Colleges, Universities, and Professional Schools
XXX Business, Computer and Management Training Schools
XXXX Business and Secretarial Schools
XXXX Computer Training Schools
XXXX Professional and Management Development Training Schools
XXX Technical and Trade Schools
XXXX Technical and Trade Schools
XXX Miscellaneous Schools and Instruction
XXXX Fine Arts Schools
XXXX Athletic Instruction
XXXX Language Schools
XXXX Other Miscellaneous Schools and Instruction
XXX Educational Support Services
XXXX Educational Support Services
Attachment 2--North American Industry Classification System
Draft Classification for:
Educational Services
Representatives of the statistical agencies of Canada, Mexico, and the United States agree
to a draft industry classification for these industries.
This draft classification applies to the subsector Educational Services. This subsector is
subdivided into 7 industry groups and 12 industries.
A General Outline
Educational services industries provide instruction and training in a wide variety of
subjects. The industry groups within this subsector (Elementary and Secondary Schools;
Junior Colleges; Colleges, Universities, and Professional Schools; Business, Computer and
Management Training Schools; Technical and Trade Schools; Miscellaneous Schools and
Instruction; and Educational Support Services) are based on the level of educational services
provided, and therefore on the level and types of training that are required of the instructors
and teachers.
The Elementary and Secondary Schools industry group includes establishments that
furnish courses that comprise each country's basic preparatory education. Included are
parochial schools and military academies furnishing basic preparatory academic courses and
secondary schools that furnish both academic and technical courses.
Junior Colleges furnish academic or academic and technical courses and grant associate or
equivalent academic degrees, diplomas, or certificates that are below the college or university
level. This grouping includes community colleges that offer associate degrees. The
requirement for admission to an associate or equivalent degree program is at least a high
school diploma or equivalent general academic training. Schools having junior college grades
in conjunction with secondary grades are classified in Elementary and Secondary Schools.
Colleges, Universities, and Professional Schools furnish academic courses and grant
academic degrees at the baccalaureate or postgraduate level. The requirement for admission
is at least a high school diploma or equivalent general academic training.
Business, Computer and Management Training Schools include establishments that
provide training in business, secretarial, computer, and related fields. This industry group
contains three industries. Business and Secretarial Schools offer courses in office procedures
and secretarial and stenographic skills and may offer courses in basic computer skills, word
processing, spreadsheet, and desktop publishing. In addition, they offer such classes as office
machine operation, reception, communications, and other skills designed for individuals
pursuing a clerical or secretarial career or a career in court reporting. Colleges of business
within universities are excluded. The Computer Training Schools industry reflects the
increasing demand for on-site and specialized computer training. Establishments included in
this industry conduct training on all phases of computer activities including computer
programming, software packages, computerized business systems, computer electronics
technology, computer operations, and local area network management. Establishments that
design custom computer systems and then provide training in the use of these custom systems
are excluded; these establishments are included in the Professional, Scientific and Technical
Services subsector. Professional and Management Development Training Schools include
establishments that offer an array of short duration courses and seminars for career
development. These establishments may customize or modify their courses to meet the
special needs of customers. The courses typically focus on executive management and
professional development and may be provided directly to individuals or through employers'
training programs. The courses may be offered on-site or off-site.
Technical and Trade Schools provide training in a wide variety of technical subjects and
trades. Because the nature of technical training varies so widely among the three countries,
only one NAICS 4-digit industry is defined within this industry group. Each country may
provide national industry detail below the NAICS industry level to reflect technical and trade
schools found within each country.
The Miscellaneous Schools and Instruction industry group includes 4-digit industries for
Fine Arts Schools, Athletic Instruction, and Language Schools. Fine Arts Schools include art
schools, drama schools, music schools, professional dance schools, other dance schools and
studios. However, schools that offer high school diplomas or academic degrees are placed in
the other appropriate industry groups, even if they specialize in fine arts. Athletic Instruction
includes establishments that provide training in athletic activities such as baseball, basketball,
golf, martial arts, and skiing. Language Schools are establishments that teach foreign
languages. They are designed to offer language instruction ranging from conversational skills
for personal enrichment to intensive training courses for career or educational opportunities.
Skills taught by these establishments may include speaking, reading, and writing in another
language.
Educational Support Services include educational consultants, educational test
development and evaluation services, educational testing services, student exchange
programs, educational curriculum development, and other non-instructional services that
support educational processes or systems. Establishments primarily engaged in providing job
training for the unemployed, underemployed, persons with disabilities, and persons who have
a job market disadvantage because of a lack of education, job skills, or experience are
classified in the Health and Social Assistance sector.
Limitations and Constraints of the Classification
Defining educational services industries that are economically significant and
homogeneous was often difficult due to lack of data. Some industries that were considered
when establishing NAICS industries for educational services are either too small or not
specialized in all three countries, for example correspondence schools. It is not possible to
use the proposed system to identify specific fields of study because many establishments offer
a wide range of courses. Further, it is not possible to differentiate career-oriented training
from training taken for personal development as many types of establishments provide both
kinds of training.
The way activities are defined in establishments differs in the three countries, preventing
the establishment of additional NAICS industries. For example, in Mexico there are separate
establishments that provide special educational instruction for elementary and secondary
school students with learning disabilities while in the United States and Canada, special
educational instruction is generally provided by schools serving all students. Also in the
United States, establishments providing trade apprenticeship training are separately
identifiable, whereas in the other countries this type of training generally occurs "on the job."
Changes were required in each country's national classification to reach international
comparability. The production principle was applied whenever these changes were required.
Relationship to ISIC
Most 4-digit NAICS industries in this sector are contained within Division 80, Education,
of the current International Standard Industrial Classification of all Economic Activities (ISIC,
Revision 3) of the United Nations. Therefore, data tabulated using NAICS also can be
tabulated according to ISIC with the following exceptions: (1) Informal education activities
below kindergarten (or preschool in Mexico) are often combined with day-care, and are
classified with the Child Day-care industry in the NAICS subsector for Social Assistance and
(2) NAICS classifies athletic instruction in Educational Services , but ISIC classifies it in 924,
Sporting and Other Recreational Activities. There are five 4-digit industries covering
educational services in ISIC while NAICS is more detailed, providing for twelve industries.
The NAICS industries for Junior Colleges and Colleges, Universities, and Professional
Schools are directly comparable to ISIC industry, 8030, Higher Education. In ISIC,
Elementary and Secondary Schools are separate industries, while in NAICS they are
combined, because in the U.S. data on schools are usually collected from school systems that
operate both levels.
Some Changes to National Classification
In Canada CSIC 8521, Post-Secondary Non-University Education, has been split into
Junior Colleges, Business and Secretarial Schools, Computer Training, Technical and Trade
Schools, and Fine Arts Schools. Aviation Schools have been moved out of CSIC 4513, Non-
Scheduled Air Transport Specialty Industry, to this subsector because they primarily provide
instruction, even though aircraft may be required in some portions of the instruction process.
Sports instruction has been moved out of CSIC 96, Amusement and Recreational Service
Industries, and becomes NAICS industry, Athletic Instruction. CSIC 8599, Other Educational
Services, has been split into Language Schools, Other Miscellaneous Instruction and
Educational Support Services. Two industries have been moved from Educational Service
Industries. These are CSIC 8541, Library Services, to the new Information sector, and CSIC
8551 Museums and Archives, to the new Museums, Historical Sites and Similar Institutions
subsector. Both will be published separately.
The Mexican CMAP groups 9211, Education Services (Private), and CMAP 9212,
Education Services (Public), are combined in the NAICS Educational Services subsector.
The NAICS Educational Services subsector does not distinguish between establishments in
the private and public sectors. Mexico will make this distinction in its national detail. The
only activities that came from another CMAP subsector are athletic instruction and
educational support services.
For the United States, cosmetology and barber schools moved into Educational Services
from 1987 SIC's 7231, Beauty Shops, and 7241, Barber Shops. Dance schools move into
Educational Services from 1987 SIC 7911, Dance Studios, Schools, and Halls. A dancing
school is not closely related to a ballroom, though both may have dance floors. Athletic
instruction moves from 1987 SIC 7999, Amusement and Recreation Services, Not Elsewhere
Classified, to Educational Services. Libraries, 1987 SIC 8231, have been moved from
Educational Services to the new Information sector, to be published separately.
Achievement of Objectives
The classification meets the objectives for the North American Industry Classification
System (NAICS). It is comprised of industries that group establishments with similar
production processes, that is, it applies the production-oriented economic concept. In the
main, the hierarchical structure of the classification also follows the production concept.
The classification achieves comparability for the three participating countries. All
countries agree on the detailed definitions of the industries. However, each country will use
terminology that reflects its own educational system.
Other objectives of the NAICS project have also been met. New industries have been
added to reflect trends in adult education and professional training.
The industries are highly specialized and economically significant. This enhances the
classification's suitability for sampling and other aspects of survey operations. Finally,
disruptions to time series, while they exist, have been minimized and generally result from
subdividing existing "not elsewhere classified" industries. The major changes are well-
defined and can be taken into account in linking time series.
Section B-Annex: United States National Industry Detail
As explained in the Structure presentation of this notice, for a number of reasons 4-digit
industries in the NAICS industry subsector presented in Part II, Section A--Attachment 1,
contain less detail than is currently in the U.S. SIC system, and less detail than is required to
meet important analytical requirements in the U.S. The three country agreement on NAICS
envisions that each country may develop national detailed industries below the NAICS
industry level, so long as the national detail can be aggregated to the NAICS classification,
thus assuring full North American comparability.
The ECPC is proposing U.S. 5-digit industry detail for the NAICS industry subsector
covered in Part II of this notice. For cases where no 5-digit detail is shown, the ECPC is
proposing that the NAICS 4-digit industries will also represent the most detailed U.S.
industries.
TABLE 1
The definitions of status codes are as follows: E-existing industry; N-new industry R-revised industry; and * means "part of". The abbreviation NEC is used for Not Elsewhere
Classified.
1987
Status SIC
1997 NAICS and U.S. description code code 1987 SIC description
XX Educational Services
XXX Elementary and Secondary Schools
XXXX Elementary and Secondary Schools E 8211 Elementary and Secondary Schools
XXX Junior Colleges
XXXX Junior Colleges E 8222 Junior Colleges and Technical Institutes
XXX Colleges, Universities, and Professional Schools
XXXX Colleges, Universities, and Professional Schools E 8221 Colleges, Universities, and Professional Schools
XXX Business, Computer, and Management Training Schools
XXXX Business and Secretarial Schools E 8244 Business and Secretarial Schools
XXXX Computer Training Schools E 8243 Data Processing Schools
XXXX Professional and Management Development Training N *8299 Schools and Educational Services, Not Elsewhere Classified
Schools (professional and management development training)
XXX Technical and Trade Schools
XXXX Technical and Trade Schools
XXXXX Cosmetology and Barber Schools N *7231 Beauty Shops (beauty and cosmetology schools)
*7241 Barber Shops (barber colleges)
XXXXX Vocational and Technical Schools N *8249 Vocational Schools, Not Elsewhere Classified (vo-tech schools,
except high schools)
XXXXX Aviation and Flight Training N *8249 Vocational Schools, Not Elsewhere Classified (aviation schools,
excluding flying instruction)
*8299 Schools and Educational Services, Not Elsewhere Classified
(flying instruction)
XXXXX Apprenticeship Training N *8249 Vocational Schools, Not Elsewhere Classified (vocational
apprenticeship training)
XXXXX Other Technical and Trade Schools N *8249 Vocational Schools, Not Elsewhere Classified (except vo-tech
schools, aviation and flight training, apprenticeship training, and
driving schools)
XXX Miscellaneous Schools and Instruction
XXXX Fine Arts Schools N *8299 Schools and Educational Services, Not Elsewhere Classified (art,
drama, and music schools)
*7911 Dance Studios, Schools, and Halls (dance instructors, and
professional and other dance schools)
XXXX Athletic Instruction N *7999 Amusement and Recreation Services, Not Elsewhere Classified
(baseball, basketball, bowling, gymnastic, judo, karate, parachute,
scuba and skin diving, skating, ski, swimming, tennis, and other
sports instruction; and sports instructional schools and camps)
XXXX Language Schools N *8299 Schools and Educational Services, Not Elsewhere Classified
(language schools)
XXXX Other Miscellaneous Schools and Instruction
XXXXX Exam Preparation and Tutoring N *8299 Schools and Educational Services, Not Elsewhere Classified
(exam preparation and tutoring)
XXXXX Automobile Driving Schools N *8249 Vocational Schools, Not Elsewhere Classified (truck driving
schools)
*8299
Schools and Educational Services, Not Elsewhere Classified
(automobile driving instruction)
XXXXX All Other Miscellaneous Schools and Instruction N *8299 Schools and Educational Services, Not Elsewhere Classified
(except professional and management training, aviation and
flight training, fine arts schools, language schools, exam
preparation and tutoring, automobile driving schools, and
educational support services)
XXX Educational Support Services
XXXX Educational Support Services N *8299 Schools and Educational Services Not Elsewhere Classified
(except instruction)
*8748 Business Consulting Services, Not Elsewhere Classified
(educational test development and evaluation services,
educational testing services, and educational consultants)
TABLE 2
The abbreviation "pt" means "part of" @ means time series break has been created that is greater than 3% of the 1992 revenues for the 1987 SIC industry.
1987 SIC code 1987 SIC description 1997 U.S. description
7231@ Beauty Shops
Beauty Shops Beauty Shops (Included in Consumer Services subsector)
Beauty and Cosmetology Schools Cosmetology and Barber Schools (pt.)
7241 Barber Shops
Barber Shops Barber Shops (Included in Consumer Services subsector)
Barber Colleges Cosmetology and Barber Schools (pt.)
7911@ Dance Studios, Schools, and Halls
Dance Studios and Halls Miscellaneous Operators of Sports and Recreation Facilities
(Included in Recreation, Amusement, and Gambling subsector)
Dance Schools Fine Arts Schools (pt.)
7999 Amusement and Recreation Services, Not Elsewhere Athletic Instruction
Classified
8211 Elementary and Secondary Schools Elementary and Secondary Schools
8221 Colleges, Universities, and Professional Schools Colleges, Universities, and Professional Schools
8222 Junior Colleges and Technical Schools Junior Colleges
8231 Libraries Libraries and Archives (Included in Information subsector)
8243 Data Processing Schools Computer Training Schools
8244 Business and Secretarial Schools Business and Secretarial Schools
8249@ Vocational Schools, Not Elsewhere Classified
Trade Schools Apprenticeship Training
Truck Drivers Schools Automobile Driving Schools (pt.)
Aviation Schools Aviation and Flight Training (pt.)
Vocational Schools Vocational and Technical Schools
Other Technical and Trade Schools Other Technical and Trade Schools
8299@ Schools and Educational Services, Not Elsewhere
Classified
Flying Instruction Aviation and Flight Training (pt.)
Automobile Driving Instruction Automobile Driving Schools (pt.)
Curriculum Development, Educational Educational Support Services (pt.)
Exam Preparation and Tutoring Exam Preparation and Tutoring
Art Schools Fine Arts Schools (pt.)
Language Schools Language Schools
Personal Development Schools Professional and Management Development Training (pt.)
All Other Schools and Educational Services, Not All Other Miscellaneous Instruction
Elsewhere Classified
8748@ Business Consulting Services, Not Elsewhere Classified Educational Support Services (pt.)
Description of Changes to the U.S. System
Educational Services - Thirteen new industries are added to the 1997 industry structure for
this industry subsector. Most of these new industries have been formed by breaking apart old
Not Elsewhere Classified (NEC) industries in the 1987 U.S. SIC. New industries are as
follows:
Professional and Management Development Training Schools from part of 1987 SIC
8299, Schools and Educational Services, NEC. This new industry was created because it had
a unique production function.
Cosmetology and Barber Schools from part of 1987 SIC 7231, Beauty Shops, and 1987
SIC 7241, Barber Shops. This was moved to this sector because the primary activity is
education, even though these schools give hair cuts.
Vocational and Technical Schools from part of 1987 SIC 8249, Vocational Schools, NEC.
This new industry was created because it had a unique production function.
Aviation and Flight Training from parts of 1987 SIC 8249, Vocational Schools NEC, and
1987 Industry Code 8299, Schools and Educational Services, NEC. This new industry was
created because it had a unique production function.
Apprenticeship Training from part of 1987 SIC 8249, Vocational Schools, NEC. This
new industry was created because it had a unique production function.
Other Technical and Trade Schools from part of 1987 SIC 8249, Vocational Schools,
NEC. This is the residual five digit category for the four digit industry Technical and Trade
Schools.
Fine Arts Schools from parts of 1987 SIC 8299, Schools and Educational Services, NEC,
and 1987 SIC 7911, Dance Studios, Schools, and Halls. This new industry was created
because it had a unique production function.
Athletic Instruction from part of 1987 SIC 7999, Amusement and Recreation Services,
NEC. This was moved to this sector because the primary activity is education, rather than
entertainment.
Language Schools from part of 1987 SIC 8299, Schools and Educational Services, NEC.
This new industry was created because it had a unique production function.
Exam Preparation and Tutoring from part of 1987 SIC 8299, Schools and Educational
Services, NEC. This new industry was created because it had a unique production function.
Automobile Driving Schools from parts of 1987 SIC 8249, Vocational Schools, NEC, and
SIC 8299, Schools and Educational Services, NEC. This new industry was created because it
had a unique production function.
All Other Miscellaneous Schools and Instruction from part of 1987 SIC 8299, Schools and
Educational Services, NEC. This is the residual category for the subsector.
Educational Support Services from parts of 1987 SIC 8299, Schools and Educational
Services, NEC, and 1987 SIC 8748, Business Consulting Services, NEC. This new industry
differs from the others in that it provides support to educational industries, rather than
providing instruction.
A major change to the 1987 Major Group, Educational Services, is the movement of 1987
SIC 8231, Libraries, to the new Information sector.
The number of Educational Services industries increased from 8 to 18. For time series
linkage, six of the eight 1987 industries are comparable within three percent of the 1997
industries.