What is an ISIC Code?

The International Standard Industrial Classification of All Economic Activities (ISIC) is a globally recognized framework for classifying economic activities. Developed by the United Nations, ISIC serves as a reference classification, facilitating the collection, reporting, and analysis of economic data. Its primary objective is to provide a structured format that supports economic analysis, decision-making, and policy formulation. By organizing economic activities into a hierarchical, four-level structure, ISIC enables detailed and comparable data presentation across countries and sectors.

ISIC Revision 5: Adapting to the Modern Economy

The most recent update, ISIC Revision 5, reflects the changing economic landscape by incorporating emerging industries and technological advancements. This revision ensures a more accurate representation of global economic activities, making ISIC a critical tool for policymakers, businesses, and researchers. By adopting ISIC Rev. 5, stakeholders can enhance their understanding of economic trends, improve international comparability, and support data-driven decision-making.

Helpful ISIC Code Tools

How to Read an ISIC Code

ISIC codes are organized into a hierarchical four-level structure:

  • Section: The broadest category, denoting major sectors of the economy.
  • Division: Identified by two digits, representing a specific industry within a section.
  • Group: The third digit specifies a more detailed classification within a division.
  • Class: The fourth digit provides the most specific classification, detailing particular economic activities.

Example:

Section C
Manufacturing
Division 13
Manufacture of Textiles
Group 139
Manufacture of Other Textiles
Class 1393
Manufacture of Carpets and Rugs

History of ISIC

Since its inception in 1948, the International Standard Industrial Classification (ISIC) has played a pivotal role in the global economic landscape. Initially developed to provide a uniform framework for classifying economic activities, ISIC has undergone several revisions to reflect the dynamic nature of the world economy. Over the decades, it has been instrumental in enabling countries to standardize their economic data, facilitating international comparisons and cooperation.

The early versions of ISIC focused on traditional industries such as agriculture, mining, and manufacturing. However, as the global economy evolved, subsequent revisions have incorporated new sectors and technological innovations. The latest revision, ISIC Rev. 5, represents a comprehensive update that addresses the emergence of new industries, such as digital services and renewable energy, ensuring the classification remains relevant and comprehensive.

This evolution of ISIC has been driven by extensive collaboration among international experts, economists, and statisticians, ensuring that the classification meets the needs of modern economies. Today, ISIC is widely adopted as the standard framework for economic classification, used by countries worldwide to organize their national accounts, employment data, and other economic statistics.

ISIC Broad Structure

Section Divisions Description
A 01–03 Agriculture, forestry, and fishing
B 05–09 Mining and quarrying
C 10–33 Manufacturing
D 35 Electricity, gas, steam, and air conditioning supply
E 36–39 Water supply; sewerage, waste management, and remediation activities
F 41–43 Construction
G 46–47 Wholesale and retail trade
H 49–53 Transportation and storage
I 55–56 Accommodation and food service activities
J 58–60 Publishing, broadcasting, and content production
K 61–63 Telecommunications, computer programming, and consultancy
L 64-66 Financial and insurance activities
M 68 Real estate activities
N 69-75 Professional, scientific, and technical activities
O 77-82 Administrative and support service activities
P 84 Public administration and defense; compulsory social security
Q 85 Education
R 86-88 Human health and social work activities
S 90-93 Arts, sports, and recreation
T 94-96 Other service activities
U 97-98 Activities of households as employers
V 99 Activities of extraterritorial organizations and bodies

Applications of ISIC Codes

ISIC codes serve as a vital tool in various domains:

  • Economic and Social Statistics: Provide a standardized method for classifying and reporting economic activities, essential for national accounts and employment statistics.
  • Monitoring and Analysis: Enable continuous monitoring and analysis of economic performance, helping policymakers identify trends and make informed decisions.
  • Classification of Statistical Units: Assign unique ISIC codes to establishments or enterprises based on their primary economic activities, ensuring coherent data collection and analysis.
  • Non-Statistical Uses: Employed in regulatory frameworks, business directories, and economic research, offering a common language for understanding economic activities.
  • International Comparability: Facilitate data comparison across countries, harmonizing economic data for global analysis.
  • Improving Business and Market Insights: Help businesses analyze market conditions, assess industry trends, and develop strategic plans.

Why are ISIC Codes Important?

ISIC codes are crucial for organizing socio-economic statistics in alignment with productive systems:

  • Efficiency and Accuracy: Enable quick and precise classification of economic activities, supporting reliable statistics for policy and decision-making.
  • International Standard: Recommended as a model for national activity classifications, enhancing data comparability across nations.
  • Central Role in Economic Classifications: Ensure consistency and comparability of data on economic activities at national and international levels.
  • Support for Policy and Decision Making: Aid in monitoring, analyzing, and evaluating economic performance, guiding informed decisions.
  • Adapting to New Economic Realities: The latest revision addresses emerging industries, ensuring relevance in modern economic dynamics.

For more information on related classifications, see Nomenclature of Economic Activities (NACE).