Standard Industry Classifications Around The World
Standard industry classifications are essential tools for categorizing businesses and economic activities. They provide a standardized framework for collecting, analyzing, and comparing economic data across regions and countries. While NASIC (North American Standard Industry Classification) is widely used in North America, various other systems are employed globally. This article explores some of the key industry classification systems used around the world.
1. ISIC (International Standard Industrial Classification of All Economic Activities)
- Region: Global (United Nations)
- Description: The ISIC is the internationally accepted standard for classifying economic activities. Developed by the United Nations, it provides a universal framework for comparing economic data across countries.
- Structure: The ISIC uses a hierarchical, numeric system similar to NASIC, but applies globally.
2. NACE (Nomenclature of Economic Activities)
- Region: European Union
- Description: The NACE classification system is used across European Union countries and is derived from the ISIC framework. It ensures consistent data collection and analysis across member states.
- Structure: NACE is a multi-level system (divisions, groups, classes) where codes can be broken down into more specific activities.
3. SIC (Standard Industrial Classification)
- Region: United Kingdom (formerly used in the U.S.)
- Description: The SIC system was the original industry classification system in both the U.K. and the U.S., though the U.S. has since adopted NASIC. The U.K. still uses SIC codes for classifying businesses for government and regulatory purposes.
- Structure: The U.K. uses 4-digit SIC codes, which are hierarchical and similar to NASIC but generally less granular.
4. ANZSIC (Australian and New Zealand Standard Industrial Classification)
- Region: Australia and New Zealand
- Description: ANZSIC is used in Australia and New Zealand to classify businesses and organizations by their economic activity. It is aligned with ISIC but tailored to the economic structures of Australia and New Zealand.
- Structure: ANZSIC has hierarchical codes up to four digits, allowing for a detailed breakdown of industries within these countries.
5. CNAE (Clasificación Nacional de Actividades Económicas)
- Region: Spain
- Description: CNAE is Spain's national system for classifying economic activities. It is closely based on the European Union's NACE system but adapted to the specific economic context of Spain.
- Structure: It uses a numeric code system similar to NACE, with divisions, groups, and classes for different activities.
6. NAF (Nomenclature des Activités Françaises)
- Region: France
- Description: NAF is France's classification system, which closely follows NACE but with specific adaptations for the French economy.
- Structure: NAF codes use a 4-digit system to classify industries.
7. JSIC (Japan Standard Industrial Classification)
- Region: Japan
- Description: JSIC is Japan's official industry classification system, which is used for compiling economic statistics. It is adapted to the unique business environment of Japan but is also aligned with global standards like ISIC for comparability.
- Structure: JSIC uses a multi-level numeric system to classify industries.
8. KBLI (Klasifikasi Baku Lapangan Usaha Indonesia)
- Region: Indonesia
- Description: KBLI is Indonesia's classification system for economic activities, tailored to the specific industries within the country.
- Structure: KBLI uses numeric codes and aligns closely with ISIC to facilitate international comparison.
9. CIIU (Clasificación Industrial Internacional Uniforme)
- Region: Latin America (used in some countries)
- Description: CIIU is the Spanish version of ISIC, and some Latin American countries use this classification for local economic activities.
- Structure: It mirrors ISIC's multi-level classification system.
Conclusion
Different parts of the world have their own standard industry codes to classify economic activities, ensuring consistency and clarity for economic reporting, analysis, and regulation. While NASIC is used in North America, other regions rely on systems like NACE in Europe, ANZSIC in Australia/New Zealand, and JSIC in Japan, among others. These classification systems play a vital role in understanding and analyzing economic trends and patterns globally.