Conversion to the 1987 Standard Industrial Classification · Appendix B. Conversion to the 1987 Standard Industrial Classification ... Cutlery, handtools, and hardware Hand and edge

Appendix B. Conversion to the 1987 Standard Industrial Classification

Effective with the publication of August 1990 data, all industry employment,hours, and earnings series were converted to 1987 Standard Industrial Classifica-tion (SIC) codes.1 This new structure replaces the 1972 SIC coding structure in ef-fect since 1978, for the industry estimates derived from the establishment survey.

The SIC coding system is periodically updated to reflect structural and techno-logical changes in the economy. Growing, emerging industries may be recognizedwith independent SIC codes for the first time, while SIC codes for declining indus-tries may be eliminated by collapsing them with other like industries into a singleSIC code. The 1987 SIC revision marks the first full SIC restructuring since 1972;there were minor updates to the SIC system in 1977.

Scope of the SIC restructuring. Approximately two-thirds of the published industryseries were unaffected by the SIC revision. There were almost no changes in scopeat the major industry division levels, with only very minor shifts between whole-sale and retail trade and between the finance, insurance, and real estate divisionand services. However, there were several significant redefinitions at the 2-digitlevel. The most notable were in two divisions, manufacturing and services. Inmanufacturing, a substantial realignment took place between electronic and otherelectrical equipment (SIC 36) and instruments and related products (SIC 38). Rubberand miscellaneous plastics products (SIC 30) and stone, clay, and glass products(SIC 32) were also noticeably affected, but to a much lesser degree. In services, anew 2-digit code (SIC 87) was established for "engineering and management ser-vices." Most of these activities had previously been classified in business services(Sic 73) or miscellaneous services (Sic 89).

At the 3- and 4-digit SIC levels, changes in scope were both more prevalent andmore substantial. Table B-l lists all 1987 Sic-based published series which are notequivalent to a 1972 Sic-based series and relates them to the 1972-based seriesfrom which they were derived. Ratios indicate the percentage of employment ineach old series that was allocated to the new series. Table B-l also lists the begin-ning year that all-employee data are available for each of these series. Table B-2lists the 44 previously published 1972-based industry series which were deleted in

1 As defined in the 1987 Standard Industrial Classification Manual, issued by the Executive Officeof the President, Office of Management and Budget.

the conversion to the 1987 SIC structure. It indicates which 1987-based series thesewere converted to and the percentage of employment from the old series whichwent to each new series. It should be noted that, in addition to industry stratifica-tion changes required by the SIC redefinitions, some changes were made to im-prove estimating efficiencies.

Reconstruction of estimates. All restructured industries were reestimated using the1987 sic-coded sample data from January 1988 forward. Some aggregate level in-dustries, without scope changes, were also affected by the retabulations becausethey are formed from the summation of restratified, reestimated component in-dustries.

Historical estimates prior to 1988 could not be retabulated from sample data,because sample records provided only 1972 SIC codes. For industries with rela-tively minor scope changes, historical data were reconstructed back to the incep-tion of the series, wherever possible. The reconstruction of historical series wasdone by adjusting the existing 1972-based employment series for the percentage ofemployment lost or the percentage of employment gained from other industries,using ratios derived from first quarter 1988 universe employment data. The firstquarter 1988 data represent the only dual Sic-coded data available for developingthese adjustment ratios.2

Hours and earnings data for restructured series were derived by computing aweighted average of the component series they were derived from. The weights arethe percentages of employment each old series contributed to the new series.

Effects due to SIC restructuring. As indicated in table B-3, the SIC revision had alarge impact on only a few major industries. For total nonfarm employment, theSIC revision effect, due entirely to restratification and not to any change in scope,was 56,000 or less than 0.05 percent. At the major division levels, the impact var-ied from 1,000 in mining to 65,000 in services. Almost all of the effect at the majordivision levels was also from the restratification of industries within these aggre-gates, not from sic scope changes. At the detailed industry level, the largest effectsof the SIC revision were in business services (-928,000), instruments and related

2 For additional information, see Employment Data Under the New Standard Industrial Classification,First Quarter 1988, Report 772, October 1989.

673

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

March 1991

products (+301,000), and electronic and other electrical equipment (-292,000).There were few significant changes at the published aggregate levels.

Among average weekly hours estimates, only transportation and public utilitiesshowed a significant effect from recomputation, a downward revision of 0.6 hour.Among average hourly earnings series, both electronic and other electrical equip-ment and instruments and related products showed large, partially offsettingchanges, due to sic redefinitions. Other differences were much less significant. Atthe total private level, hours and earnings were unchanged (table B-3).With re-

spect to seasonally adjusted data, all published series were revised for the mostrecent 5 years (1985-90) for the incorporation of new seasonal factors, as is usual.In addition, series affected by the SIC revision which were reconstructed for yearsprior to 1985 have again been seasonally adjusted, based on the 1987 sic-basedestimates.

For additional information on the SIC revision and its effect on published series,see Patricia M. Getz, "BLS Establishment Estimates Revised to March 1989 Bench-marks and 1987 SIC Codes," Employment and Earnings, September 1990, pp 6-34.

674


March 1991

Table B-1. Published industries restructured under the 1987 SIC and relationship of employment to the 1972 SIC industries

1987 SIC industry1987SIC

code

1972SIC

code

1972 to 1987ratio1

Beginningyear

for all-employee

series

Mining:Bituminous coal and lignite mining

Construction:Heavy construction, except building

Highway and street constructionHeavy construction, except highway

Special trade contractors

Manufacturing:Durable goods

Lumber and wood products

Millwork, plywood, and structural members

Millwork

Miscellaneous wood products

Furniture and fixtures:Office furniture

Partitions and fixtures

Miscellaneous furniture and fixtures

Stone, clay, and glass products

Pottery and related products

Miscellaneous nonmetallic mineral products

Primary metal industries:Aluminum foundries

Fabricated metal products

Cutlery, handtools, and hardware

Hand and edge tools, and blades and handsaws

Plumbing and heating, except electric

Plumbing fixture fittings and trim

Heating equipment, except electricFabricated structural metal products

Metal doors, sash, and trim

See footnotes at end of table.

122

161611621621717

24242424324324312431249249

252252254254259

3232326326329

3365

34343434342342

3423,53423,5

3433433432343234333443443442

12

161611611621617

24342624334424313442249266

252259254259259

3236326367329

3361

34353730342355

3423,53555343307343230734333443463442

94.6666

96.521484.75113.2454

100.00003.4785

100.0000

299.68733.9717

100.0000.5094.6518

100.00001.7230

100.00008.9878

100.000064.8231

100.00002.1165

100.00001.6588

96.2246

94.5041.0816

100.0000.2680

72.6864

55.6354

99.4321.0018.3067.3849

100.0000.0229

100.0000.1363

98.5898.5265

100.0000.5265

95.931898.2769.9996

91.0121

1939

197219881972

1972

1939

1947

1972

1972

1972

1958

1958

1958

1939

1947

1988

1988

1947

1947

1972

1972

1972

19721972

1958

675


March 1991

Table B-1. Published industries restructured under the 1987 SIC and relationship of employment to the 1972 SIC industries—Continued


code

1972SIC

code

1972 to 1987ratio1

Beginningyear

for all-employee

series

Fabricated metal products—ContinuedSheet metal work

Metal forgings and stampingsMetal stampings, nee

Miscellaneous fabricated metal products

Valves and pipe fittings, nee

Industrial machinery and equipment

Construction machinery

Industrial trucks and tractors

Metalworking machinery

Special industry machinery

Printing trades machineryFood products machinery

General industrial machinery

Pumps and pumping equipmentSpeed changers, drives, and gears

Computer and office equipment

Electronic computersComputer terminals, calculators, and office machines, nee .

Refrigeration and service machinery

Refrigeration and heating equipment

Miscellaneous industrial and commercial machinery

Scales, balances, and industrial machinery, nee

Electronic and other electrical equipment

Electric distribution equipmentSwitchgear and switchboard apparatus

3444346

3469349349

3494

35353535

3531353135373537

354354354355355355

35553556

356356356

35613566

357357

35713575,8,93575,8,93575,8,93575,8,9

358358

35853585359359359359

3596,93596,9

3636

3613613

3444346

3469349372

3494

34353637

3531353635363537

354356362354355363

35553551

343355356

35613566

357366

357335733574

3572,93661358369

35853699356357359372

35763599

3536

3613613

91.851499.000397.1998

100.0000.8923

37.7579

.058499.4217

.8759

.7329100.000024.64233.0149

100.000098.77863.79837.46761.2213

90.80781.1304

87.055065.6950

1.41017.0169

87.853561.960990.107696.8416

.416672.28303.9089

100.0000100.0000

2.1568100.0000

.3433100.0000

4.32738.34801.4144

100.00002.1324

100.000093.9304

.401884.240595.925891.8226

1958197219721972

1988

1947

1972

1972

1958

1958

195819881972

198819721958

19881988

1958

1972

1972

1982

1939

19581958


676


March 1991



code

1972SIC

code

1972 to 1987ratio1

Beginningyear

for all-employee

series

Electronic and other electrical equipment—ContinuedElectrical industrial apparatus

Relays and industrial controls

Household appliances

Electric lighting and wiring equipment

Electric lamps

Communications equipmentTelephone and telegraph apparatus

Electronic components and accessoriesElectron tubes

Electronic components, neeMiscellaneous electrical equipment and supplies . .

Transportation equipmentAircraft and parts

Aircraft parts and equipment, nee . . .

Instruments and related products

Search and navigation equipment

Measuring and controlling devices

Medical instruments and supplies

Costume jewelry and notionsMiscellaneous manufactures

Nondurable goods

Food and kindred products:Poultry slaughtering and processing.

Preserved fruits and vegetablesCanned specialtiesPrepared feeds, nee

3623623623625362536253633643643641364136636613661367367136713679369369369369

373723728

3838381381382382382382384384396399399

20152015203203220482048

3613623673613362236793633643693641369936636613662367

3671-336793679357366367369

373723728

3638366381366381382383369384396396399

20162017203203220472048

4.074192.5323.84338.1773

100.00002.057498.8695100.0000

.8295100.000010.455046.991697.84315.759297.2806100.00001.891855.45041.74395.15371.6079

78.1093

98.960296.975287.9661

14.8019100.000047.102762.9508.3350

37.0491100.0000100.000020.7178100.000085.802614.1973100.0000

2.3127399.0283

100.0000100.000095.888399.839220.1742100.0000

1958

1972

19581958

1972

19881988

19581988

19881988

193919391972

1947

1988

1988

1988

19881972

1939

1972

197219721972


677


March 1991



code

1972SIC

code

1972 to 1987ratio1

Beginningyear

for all-employee

series

Food and kindred products—ContinuedBakery products

Cookies, crackers, and frozen bakery products, except breadSugar and confectionery products

Candy and other confectionery productsMiscellaneous food and kindred products

Textile mill products:Knitting mills

Yarn and thread mills:Yarn spinning mills

Throwing and winding mills

Miscellaneous textile goods

Apparel and other textile products:Men's and boys' shirts

Men's and boys' trousers and slacks

Men's and boys' work clothing

Paper and allied productsPaper mills

Sanitary food containersFolding paperboard boxes

Paper, coated and laminated, neeBags: plastics, laminated, and coated

Printing and publishing:Commercial printing

Commercial printing, nee

Printing trade services

Chemicals and allied products:Industrial inorganic chemicals

Industrial inorganic chemicals, nee

Industrial organic chemicalsIndustrial organic chemicals, nee

Rubber and miscellaneous plastics products

205205

2052,3206206206

2064209209

225225

2281228122822282

229

2321232523252326

26262262

26562657265726722673

27527592759279279

281281

28192819

2862869

303030

203205

2038203206209

2065203209

225229

2281228322822283229

2321232723282328

26262266

26542651265426412643

27527512753275279

281286

28192861,9

2862861,9

323530

3.5699100.0000100.0000

.5247100.0000

.735689.1262

.016999.2643

100.00005.3622

100.000081.6835

100.000018.113594.6377

93.9364100.000044.831755.1683

99.3481100.000035.176869.2511

100.000030.748970.368863.3756

99.0699100.000075.3906

.9300100.0000

100.0000.1290

100.0000.1621

99.870996.9608

5.4958.1745

99.6150

1972

19881972

19881972

1958

1972

1972

1958

19581988

1988

19391972

19881988

19881988

19581972

1972

1972

1972

19721972

1939


678


March 1991

Table B-1. Published industries restructured under the 1987 SIC and relationship of employment to the 1972 SIC industries—-Continued


code

1972SIC

code

1972 to 1987ratio1

Beginningyear

for all-employee

series

Rubber and miscellaneous plastics products—ContinuedHose, belting, gaskets, and packing

Rubber and plastics hose and belting

Fabricated rubber products, nee

Miscellaneous plastics products, nee

Transportation and public utilties:Transportation

Water transportationWater transportation of freight, nee

Water transportation services

Air transportation, scheduled

Freight transportation arrangement

Communications and public utilities

Radio and television broadcastingTelevision broadcasting stations

Cable and other pay television service

Electric, gas, and sanitary services

Sanitary services

Wholesale trade

Durable goods

Motor vehicles, parts, and supplies

Motor vehicle supplies and new partsConstruction materials, nee

Professional and commercial equipment

Computers, peripherals and softwareElectrical goods

Electrical apparatus and equipmentElectronic parts and equipment

Machinery, equipment, and supplies

Industrial machinery and equipment

Miscellaneous wholesale trade durable goods


3053053052

306306306308

44444444449449451451473473

48,4948,4948348334844844949495495

50-5150-51

50505015015013503950450450455065063506550850850845084509509

329303,4303,4

355303,4306307

44443,4445445446451452471472

48,4948,4948348334834894449446495

50-5152-59

50595015935013503950450850815065063506550650850635084504509

27.313596.960895.8367

2.15223.3092

100.000099.4734

499.956799.234888.6249.6366

76.299698.5600100.000054.5385100.000021.6219

100.00004.0433

96.198092.43513.801975.7386.7651

100.00001.4399

100.0000

100.0000.1156

100.0000.9010

100.000028.027894.731143.956331.424048.034855.422198.880971.3835100.00001.1190

51.96512.1547

100.000068.5759100.0000

1972

1972

1972

1958

196419641988

1988

1988

1988

1964

195819821988

1964

1972

1939

1972

1972

198219881988

19881958198819881982

1982

1988

679


March 1991



code

1972SIC

code

1972 to 1987ratio

Beginningyear

for all-employee

series

Retail tradeDepartment storesMiscellaneous general merchandise stores

Automotive dealers, nee

Radio, television, and electronic stores

Record and prerecorded tape stores

Miscellaneous retail establishmentsFuel dealersRetail stores, nee

Finance, insurance, and real estateFinance

Depository institutions

Commercial banksState commercial banks

Savings institutions

Savings institutions, except Federal

Credit unions

Nondepository institutions

Personal credit institutions

Business credit institutions

Commodity contracts brokers, dealers, and exchanges .Security and commodity services

Insurance

Insurance agents, brokers, and services

Real estate

Real estate agents and managers

Services

Personal services


52-59531539539

5595731

5735

59598599599

60-65,6760-62,6760-62,67

6060602602260226036036036036603660366036606

6161614614615615615

622,3628

63,6463,64

64646565653653

72

52-59531531539

556,95732

5733

59598598599

60-6760-62,67

66

60616026022

6023,460260361260226036123

6124,5614

616661466615

611,366

622,3,8622,3,8

63646466656665366

72

99.884497.35422.6457

100.0000

32.520566.2163

64.8882

99.098999.4440.5559

100.0000

99.9972100.00004.7158

100.000059.165898.564997.350196.10981.4350

100.0000100.00002.6498

100.0000100.0000100.000048.2236

40.83414.699051.77633.242199.432338.63891.4632

29.497973.7368

100.0000100.0000100.000056.2094100.000037.2352100.000037.36845.0028

5100.000090.7985

193919581988

19881988

1988

197219581972

19391972

1988

19721988

1988

1988

1988

1988

1988

1972

19881988

1972

1972

1972

1972

1939

1958

680


March 1991



code

1972SIC

code

1972 to 1987ratio1

Beginningyear

for all-employee

series

Personal services—ContinuedLaundry, cleaning, and garment services

Miscellaneous personal services

Business services

Personnel supply servicesHelp supply services

Prepackaged softwareData processing and preparation

Miscellaneous business services

Detective and armored car services

Motion pictures

Amusement and recreation services

Miscellaneous amusement and recreation services

Health services:Offices and clinics of medical doctors

Offices and clinics of dentists

Nursing and personal care, neeHome health care services

Legal services

Social services:Individual and family services

Museums and botanical and zoological gardens

Engineering and management services

Research and testing services

Management and public relations

Services, nee

721721729

737373673637363737273747387387381

78787979799799799

8018018028028059808

8181

8328328484878787387387487489

721725,9725,9

727373673627369737273747357397393

73787279

725,9793

791,9

8018088028088059809

6681

8328397984738973989273673989

100.0000.7028

56.8650

1.635482.431496.4391100.000054.521628.466074.5430100.000050.796591.8657

1.8798100.00007.566099.270131.62863.833090.9632

100.000038.9567100.0000

.267047.088781.4568

1.8565100.0000

100.000030.4147.7298

100.000015.688697.758816.7540100.00003.560820.57572.2411

1972

1988

1958

19721982

198819881988

1982

1988

1988

1988

1972

1982

19881988

1972

1988

1988

1988

1988

1988

1988

1 Based on microdata files of dual-coded industries for first quarter 1988.2 A small portion of durable goods was reassigned to nondurable goods.3 A small portion of nondurable goods was reassigned to durable goods.4 A small portion of transportation was reassigned to communications and public utilities.

5 Services under the 1987 SIC structure comprise all of the 1972-SIC based components plus a very smallportion of finance, insurance, and real estate.

NOTE: Nee is an abbreviation for "not elsewhere classified" and designates broad categories of indus-tries which cannot be more specifically identified.

681


March 1991

Table B-2. Disposition of employment in industries deleted from the 1987 SIC structure


code

1987SIC

code

Dispositionin

1987 SIC

Coal mining

Crude petroleum, natural gas, and natural gas liquids

Aluminum foundries

Food products machinery

Electronic computing equipment.

Machinery, except electrical, nee

Industrial controls

Radio and TV communication equipment

11,12

131,2

3361

3551

3573

3599

3622

3662

Optical instruments and lenses .

Poultry dressing plants

Cookies and crackers

Cane and beet sugar

Confectionery products

Men's and boys' separate trousers

Men's and boys' work clothing

Paper and pulp mills

Paper coating and glazing

Bags, except textile bags


383

2016

2052

2061,2,3

2065

2327

2328

261,2,6

2641

2643

12

131132

33633365

35563565

35713572

3575,8,93577

3695,9

35933599

3625

366136633669

3695,938123829

382

2015

2052,3

206120622063

20642068

2325

23252326

261262249

26712672

26732674

100.0000

97.62032.3797

44.364655.6354

65.695034.3050

72.28307.36033.9089

14.46591.9818

6.069693.9304

100.0000

5.759224.26164.79486.3878

58.3813

.4153

100.0000

100.0000

100.000032.995426.306340.6983

89.126210.8738

100.0000

44.831755.1683

7.568490.12702.3046

29.631270.3688

63.375636.6244

682


March 1991

Table B-2. Disposition of employment in industries deleted from the 1987 SIC structure—Continued


code

1987SIC

code

Dispositionin

1987 SIC

Folding paperboard boxes .

Sanitary food containers ..

Commercial printing, letterpress

Gum, wood, and industrial organic chemicals, nee

Reclaimed rubber, and rubber and plastics hose and belting

Miscellaneous plastics products

Trucking and trucking terminals

Local water transportation ,

Water transportation services .

Air transportation

Freight forwarding

Commercial machines and equipment.

Professional equipment and supplies .

Car dealers

Radio and television stores .

Music stores .

State banks, not Federal Reserve

Savings and loan associations . . .

State associations, insured


2651

2654

2751

2861,9

303,4

307

421,3

445

446

451,2

471

5081

5086

551,2

5732

5733

6023,4

612

6123

2657

26562657

2759

286128192869

305306

308343

421423

444448449

449495

451452

4731

504450455046504750485049

551552

57315734

57355736

60226036603

6036

100.0000

69.251130.7489

100.0000

4.2875.1621

95.5505

96.96083.0392

99.4735.5265

99.6780.3220

.636722.100777.2626

98.56011.4399

96.67383.3262

100.0000

35.618655.42218.9593

65.066611.896923.0366

94.12895.8711

66.216333.7837

64.888235.1118

96.10983.8902

100.0000

100.0000

683


March 1991

Table B-2. Disposition of employment in industries deleted from the 1987 SIC structure—Continued


code

1987SIC

code

Dispositionin

1987 SIC

Combined real estate, insurance, etc.

Temporary help supply services

Miscellaneous business services

Management and public relations.

Detective and protective services.

Equipment rental and leasing

Outpatient care facilities

66

7362

739

7392

7393

7394

808

61646581

7363

735738784873874

87328741874287438748

73817382

735373597841

801802809

4.699056.209437.2352

1.8565

100.0000

7.140650.79654.7332

16.754020.5757

16.689441.189426.79125.79549.5347

91.86578.1343

15.359744.777739.8626

38.9567.2671

60.7762

NOTE: Nee is an abbreviation for "not elsewhere classified" and designates broad categories of indus-tries which cannot be more specifically identified.

684


March 1991

Table B-3. The SIC revision effect on nonfarm employment, hours, and earnings, March 1989

Industry

Employment 1

1972 SIC-based

estimate

1987 SIC-based

estimateDifference

Average weekly hours 2

1972 SIC-based

estimate

1987 SIC-based

estimateDifference

Average hourly earnings 3

1972 SIC-based

estimate

1987 SIC-based

estimateDifference

TotalTotal private

MiningConstructionManufacturing

Durable goodsNondurable goods

Transportation and public utilities . .Wholesale tradeRetail tradeFinance, insurance, and real estateServices

Government

107,01789,052

7024,837

19,55611,5508,0065,6076,154

19,0596,723

26,41417,965

107,07389,108

7034,813

19,58511,5388,0475,6466,145

19,0236,714

26,47917,965

5656

1-2429124139-9

-36-965

0

34.442.037.441.041.739.939.237.928.535.832.4

34.442.137.440.941.739.938.637.928.535.732.4

0.0.1.0

-.1.0.0

-.6.0.0

-.1.0

$9.5613.1513.2610.4110.939.66

12.4610.216.489.439.29

$9.5513.1713.3210.4110.949.66

12.4710.236.479.409.27

$-0.01.02.06.00.01.00.01.02

-.01-.03-.02

1 The largest effects of the SIC revision on nonfarm employment were in business services (-928,000),instruments and related products ( + 301,000), and electronic and other electrical equipment (-292,000),not shown separately.

2 The largest effect of the Sic revision on average weekly hours was in transportation and public

utilities (-0.6 hour).3 The largest effects of the sic revision on average hourly earnings were in instruments and related

products ( + .53 cents) and electronic and other electrical equipment (-.31 cents), not shown separately.

685


March 1991

Documents

Conversion to the 1987 Standard Industrial Classification · Appendix B. Conversion to the 1987 Standard Industrial Classification ... Cutlery, handtools, and hardware Hand and edge