On what basis are the industries in the Current Employment Statistics survey classified?
A sample establishment in the CES survey is an economic unit, such as a factory, which produces goods or services. It is generally at a single location and engaged predominantly in one type of economic activity. Establishments reporting on the schedule (form BLS 790) are classified into industries based on their principal product or activity. Ideally, the principal good or service should be determined by its relative share of current production costs and capital investment at the establishment. In practice, however, it is often necessary to use other variables such as revenue, shipments, or employment as proxies for measuring significance. Industry classification, based on the 2007 North American Industry Classification System, is determined from a supplement to the quarterly unemployment insurance tax reports filed by each employer. NAICS was developed through a cooperative effort between the United States, Mexico and Canada. NAICS is based on a production-oriented concept in which in
