The NAICS 2022 update and its effect on BLS employment estimates in the retail trade sector

The 2022 update to the North American Industry Classification System (NAICS) had a large impact on the retail trade industry, resulting in substantial reclassifications within the industry sector. The U.S. Bureau of Labor Statistics (BLS) Current Employment Statistics (CES) program uses NAICS to classify its published estimates of employment, hours, and earnings by detailed industry. Beginning with the release of the January 2023 data, the CES–National program implemented changes to reflect the update to NAICS 2022. This article examines how the update affected CES–National employment estimates in the retail trade sector and its component industries. The retail trade sector plays an important role in the U.S. labor market, and its evolving landscape caught the attention of policymakers during their most recent review of the North American Industry Classification System (NAICS). NAICS is a standard industry classification system that classifies establishments into industry groups on the basis of their primary activity.