U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

UI

CORRESPONDENCE SYMBOL

TEUR

ISSUE DATE

June 21, 1999

RESCISSIONS

None

EXPIRATION DATE

January 31, 2001

DIRECTIVE

:

UIS INFORMATION BULLETIN NO. 08-99

 

TO

:

ALL REGIONAL ADMINISTRATORS

 

FROM

:

GRACE A. KILBANE
Director
Unemployment Insurance Service

 

SUBJECT

:

Effect of the North American Industry Classification System (NAICS) on Unemployment Insurance Reports and Processes.

  1. Purpose. To alert State Employment Security Agencies (SESA's) of the effect the North American Industry Classification System (NAICS) will have on the Unemployment Insurance system.

  2. Reference. UI Information Bulletin No. 19-96 and Field Memorandum 15-97.

  3. Background. NAICS will begin to replace the Standard Industry Classification (SIC) system during the next two years. NAICS is organized much like the existing SIC system; however, the current four digit number will be replaced by a six digit structure. All employing units covered by State UI laws will be reclassified to the new structure. Several crosswalk references are available which translate from SIC to NAICS and from NAICS to SIC. They can be downloaded from the Internet World Wide Web (WWW) address of http://www.naics.com. The Bureau of Labor Statistics (BLS) has an implementation schedule for its programs which runs from Calendar Year (CY) 2000 to 2004. Other government agencies like the Census Bureau also have begun to phase the new NAICS codes into their systems and surveys.

  4. Affected UI Processes. UI Required Reports (UIRR) which will be affected by the switch to NAICS codes are Forms ETA 203, Distribution of Characteristics of the Insured Unemployed, and the preparation of ETA 9049, Worker Profiling and Reemployment Services Outcomes. In addition, Worker Profiling and Reemployment System (WPRS) statistical models, Unemployment Insurance Tax Performance System (TPS), and Benefit Accuracy Measurement (BAM) may require modifications to accommodate NAICS codes.

    1. ETA 203.  New instructions will be published to accommodate the change from four to six digit industry codes, and several new industry divisions will be added.

    2. WPRS.  In the statistical profiling model, both separating and new employer information previously captured as a four digit code now will require six digits.

    3. BAM.  The BAM Data Collection Instrument (DCI) is being redesigned, and major programming changes will effect the BAM tables in the UI Database (UIDB) and the BAM applications software on the Sun SPARC system.

    4. TP.  SESA initial status determination forms will have to be modified to accommodate the six-digit industry codes.

  5. Action. For UI reporting purposes, the tentative implementation date for NAICS coding will be July 1, 2000. Data reported for July will be due in the National Office in August 2000. This implementation date is intended to be consistent with the BLS implementation timetable. Regional Administrators are requested to provide information contained in this bulletin to the SESAs. States should inform staff responsible for the WPRS, BAM, TPS, and UIRR systems of the upcoming changes so that they may begin planning for any state software changes this may require. Instructions for the ETA 203 report will be issued in January 2000.

  6. Inquiries. Address all inquiries to the appropriate Regional Office.