Standard Industrial Classification will be revised

What is new in the Standard Industrial Classification TOL 2025?

Considerable changes take place in the industry trade (G). Sale and maintenance of motor vehicles are no longer monitored separately, but the activity is moved to sub-categories in wholesale trade (G 46), retail trade (G 47) and maintenance (T 95). Retail trade is no longer divided into sub-categories based on the place of sales but only on the traded goods. At the same time, the division into in-store and online retail sale is discontinued. References are dropped from the names and descriptions concerning places of sales, such as supermarkets, self-service shops, kiosks, department stores, stalls, markets, online retail sale and mail order sales.

The old information and communication section is divided into two categories: publishing and content production (J 58-60) and information and communications technology services (K 61-63). As a result, the section code moves forward by one letter starting from section K of the old classification. For example, the section of financial and insurance activities used to be K and now it is L.

There are around twenty new categories of intermediation service activities. This is largely caused by developments in digitalisation, technology and the platform economy. These intermediation service activities can be carried out on digital platforms or through non-digital channels, including door-to-door, face-to-face, telephone, mail and so on. Examples of intermediation service activities include timeshare exchange services and digital intermediation platforms for accommodation (I 55400).

The descriptions of the categories and the boundaries between them have been clarified. For example, trade (G) is limited to trade in physical goods, whereas downloading and streaming services of e-books, music, video games or software implemented by others than the publisher are classified in content distribution activities (J 60). Publishing of video games and continuous development of already published own games are classified in content production (J 58), while programming of games as subcontracts is classified in information technology service activities (K 62).

How has the Standard Industrial Classification TOL 2025 been compiled?

TOL 2025 is Finland's national Standard Industrial Classification. It is a one-digit level extension of the European Union's NACE statistical classification of economic activities, which has four levels. The TOL classification fully adheres to the NACE classification on section and 2-4-digit levels. Finland has defined its own 5-digit level for national specific needs. In other words, Finland's industrial classification is the EU's NACE classification to which five-digit level categories describing Finland's national specific features and needs have been added. The 5-digit code ends in zero (0), when there is no national subdivision and one to nine (1 to 9) when Finland monitors the activity as nationally defined subcategories.

The new Standard Industrial Classification TOL 2025 has been compiled by first adding those national 5-digit categories from Finland's old TOL 2008 classification that have retained their significance to the new structure of the EU's NACE classification. Significance refers to the size or value of the activity in the national economy, as well as to the importance of the subcategory division in societal analysis. The change in significance has been assessed from the time the TOL 2008 classification was adopted up to the early 2020s.

In the second stage, the 5-digit division of the new classification was reviewed in cooperation with national information actors. Some criteria for the division into subcategories were updated and some subcategories were added by dividing new national 5-digit level categories from the European 4-digit level categories.

The changes were made to increase the accuracy and usability (relevance) of the Standard Industrial Classification both in presenting statistical data and in societal analysis.

Significance of the Standard Industrial Classification

The Standard Industrial Classification is essential to statistics compilation: it is used in several data collections, and the data of many statistics are published by industry. The Standard Industrial Classification also enables comparisons of statistical data between different countries. The Standard Industrial Classification is also utilised in many national systems, such as those related to taxation and insurance, as well as in legislation.

The Standard Industrial Classification is a tool for describing the economy and society, which should retain its accuracy over time. The Standard Industrial Classification is revised to account for changes in the economy, such as technological advancements, the emergence of new types of economic activities, digitalisation and other cross-cutting changes.

To ensure international comparability, the NACE classification is always issued as an EU Regulation, which binds Statistics Finland as the national statistical authority and as an EU data producer to use the common classification.

The EU's NACE classification is derived from the UN's ISIC, the International Standard Industrial Classification of All Economic Activities. To ensure that the national and international data reported according to the Standard Industrial Classification retain their comparability, the classifications must be revised by the UN, the EU and Finland at the same time.