What It Is: The standard used by federal statistical agencies in classifying business sectors and industries. Developed with Canada and Mexico, NAICS allows for comparability in business statistics across North American countries.

Who Uses It: Federal and state labor market agencies, economic development organizations, workforce boards, industry associations, economic development agencies, regional planning organizations, sector partnerships, industry consortia, and more.

Why It Matters: NAICS codes are used to label, track, collect, analyze, and publish data related to the business economy. Defines industry sectors allowing an understanding of economic structure and where major activity sits in regions. Businesses may operate across multiple industries while identifying a primary industry of operation. Change agents can use NAICS codes to understand the industry priorities of local businesses. You can explore the NAICS codes through the US Census Bureau. NAICS codes are not assigned; rather companies self-select one primary and potentially multiple secondary NAICS codes. As a result, data may not capture every industrial component within business operations, and some STEMM related operations may be under reported.

How to Interpret It: NAICS codes are formatted as 2- to 6- digit numbers, denoting broad sectors and increasingly detailed industry groups. There are 20 sectors at the 2-digit level and 1,012 national industries at the 6-digit level.

Digits 1-2: Sector
Digits 3: Subsector
Digits 4: Industry Group
Digits 5: NAICS Industry
Digits 6: National Industry

What It Is: The federal standard used to classify workers into occupational categories based on the work they perform.

Who Uses It: Economic development agencies, regional planning organizations, workforce system stakeholders, sector partnerships, training providers, apprenticeship programs, industry consortia, and more.

Why It Matters: SOC codes are used to label, track, and understand various job-related metrics and outcomes across occupations. SOC codes can be used to understand quantitative and qualitative job information such common skills and duties, typical education at the time of entry, and wage data. You can explore occupation and related learning and training information on O*Net. This data can inform current and future planning by grounding decision-making in local and national data. 

How to Interpret: SOC codes are formatted as 2- to 6- digit numbers denoting broad and more detailed occupational groups. There are 23 major groups at the 2-digit level and 867 detailed occupations at the 6-digit level.

Digits 1-2: Major Group
Digits 3: Minor Group
Digits 4-5: Broad Occupation
Digit 6: Detailed Occupation

What It Is: The taxonomic standard for academic program titles used in federal surveys and state reporting of postsecondary institutional data. Developed by the US Department of Education, each academic program is associated with a six-digit code that is used to identify and track educational programs.

Who Uses It: Higher education institutions, state higher education agencies, IPEDS reporting, accreditation bodies, and more.

Why it Matters: CIP codes are used to label and track many types of participation, outcomes, and other metrics across postsecondary education programs. With knowledge of CIP codes, change agents can understand specific educational programs, while insights like the SOC-CIP crosswalk provide a standardized way to relate academic programs with occupational trajectories. 

How to Interpret It: CIP codes are formatted as 2- to 6-digit numbers denoting broad and more specific education programs. There are currently 48 broad subject areas at the 2-digit level and over 1,830 specific instructional programs at the 6-digit level.

Digits 1-2: Broad Subject Area or Primary Discipline‍ ‍
Digits 3-4: Intermediate group or Specialization
Digits 5-6: Specific Instructional program or Exact Major

What It Is: A national framework developed by Advance CTE to organize career and technical education (CTE) programs into 14 core career clusters. The framework serves as a bridge between K-12 education and industry and allows for consistency in high-quality CTE programs.

Who Uses It: K–12 CTE programs, state CTE offices, Perkins reporting, career guidance professionals, and more.

Why It Matters: Aligns K–12 CTE learning with industry (NAICS) and occupational (SOC), and instructional program (CIP) classification systems, allowing for deeper pathways understandings. The connection between these classification systems can be explored using the Advance CTE crosswalks.

How to Interpret It: There are 14 CTE Career Clusters representing major industry sectors and 72 Sub-clusters denoting more specific career pathways within those clusters.

Description of CTE Clusters:

1. Advanced Manufacturing: Blends innovative technologies and practices to enhance design and production.

2. Construction: Focuses on professions involved in designing, planning, managing, and executing projects in the built environment.

3. Supply Chain & Transportation: Encompasses the transfer, coordination, and management of goods from production to consumption.

4. Arts, Entertainment, & Design: Combines creative roles in visual and performing arts, film, journalism, fashion, interior design, and creative technologies.

5. Hospitality, Events, & Tourism: Encompasses a range of services and experiences related to food and beverage, lodging, travel, events, and conferences.

6. Financial Services: Encompasses managing and advising financial transactions, including banking, finance, accounting, insurance, and real estate.

7. Education: Fosters learning from early childhood to adulthood, including teaching, instructional design, counseling services, community engagement, learner support, and educator training.

8. Healthcare & Human Services: Promotes whole health in individuals and communities through services supported by medical and social sciences.

9. Public Service & Safety: Roles in local, state, and federal government; legal and justice systems; security; and military operations, to promote civic responsibility and ensure the well-being, security, functionality, and resilience.

10. Agriculture: Scientific advancement of agriscience, cultivation, processing, and distribution of agricultural products, employing advanced technologies and sustainable practices.

11. Energy & Natural Resources: Careers in traditional and renewable fuel production, power generation and energy conversion, utilities, environmental preservation, ecological research, and resource extraction.

12. Digital Technology: Focuses on developing digital systems for communication and data storage.

13. Marketing & Sales: Focuses on promoting products, understanding consumer needs, engaging with communities, and driving sales.

14. Management & Entrepreneurship: Involves skills and occupations focusing on business administration, operations optimization, strategic planning, workforce management, and entrepreneurship.