OMB Seeks Your Input on How We Classify Industries for 2027

You might care about this because the Office of Management and Budget, or OMB, is asking for public comments on proposed changes to the North American Industry Classification System, known as NAICS. This system is how the United States, Canada, and Mexico classify different types of businesses to collect and analyze economic data. The document explains that the Economic Classification Policy Committee, or ECPC, has recommended updates for 2027. These updates aim to make industry definitions clearer, recognize new and growing industries, and combine some existing ones. The goal is to make sure that the way we categorize businesses keeps up with the actual economy. This ensures that government agencies and researchers have accurate information. If you have an opinion on these proposed changes, now is your chance to share it. The deadline for comments is 30 days from the notice's publication date. This update would take effect for data collected on or after January 1, 2027. The document provides details on where to submit comments and outlines the background and reasons for these proposed revisions to the current NAICS 2022 system. This document is particularly interesting because it shows how government agencies work to keep economic data relevant and accurate in a changing world. The NAICS system, used by three countries, is reviewed every five years. This review ensures it reflects new technologies and the growth of service industries. This helps us understand what is happening in the economy. The OMB and ECPC must balance the costs of changing classification systems with the need for better data. When the system does not recognize new industries, it can lead to gaps in our understanding of economic activity. This request for comments allows the public and various stakeholders to help shape how industries are defined. This is important for everyone from small businesses to large government statistical agencies. The proposed changes are not just about adding new categories. They are about maintaining a consistent framework for economic measurement across North America. This affects how statistics are collected, presented, and analyzed by many users. This legal document would be most interesting to a wide range of people and groups. First, businesses themselves, especially those in new or quickly changing sectors, should pay attention. Their industry classification can affect how they are tracked and understood in economic reports. Government agencies, particularly statistical agencies like the Census Bureau, Bureau of Labor Statistics, and Bureau of Economic Analysis, are directly affected. They rely on NAICS for data collection and publication. Researchers and economists who study industry trends, economic growth, and specific sectors will find this very relevant. Trade associations and industry groups might want to ensure their members are properly represented in the classification system. Policymakers who use economic data to make decisions also have a strong interest. Anyone who uses government statistics to understand the economy or make business forecasts would also find this information important. Finally, software developers and data analysts who work with large economic datasets may need to understand these changes to update their systems.