The Indicator from Planet Money · Tuesday, September 29, 2026
The need for standardized industry classification arose in the 1930s with the development of economic indicators like GDP. The federal government initially implemented Standard Industrial Classification (SIC) codes, but by the 1990s, these were updated to the North American Industry Classification System (NAICS) to better accommodate emerging industries.
“Jennifer says, back in the 1930s, when ideas like gross domestic product were being developed, the federal government realized we needed a standard way to refer to different kinds of businesses.”
“The Department of Commerce came up with one, standard industry classification codes. By the 1990s though, Jennifer says, they weren't keeping up with all the emerging industries, and in 1997, we adopted a new version called NAICS codes.”