What is a division and why are there gaps?

A division is the second level of NACE, identified by a two digit numerical code, inside one section. The Eurostat manual states that the structure consists of a first level of sections, a second level of divisions, a third level of groups, and a fourth level of classes. A division narrows a section into a field of activity, such as crop and animal production inside agriculture, or manufacture of food products inside manufacturing. Divisions are coded consecutively, with gaps left unused so that a new division can be added later without renumbering the whole classification.

How is a division code formed?

A division code is two digits. The manual states that divisions are coded consecutively, and it gives the example of division 20, inside which group 20.5 and class 20.51 sit. The two digits are the first two digits of every group and class code inside the division. A group code is the division code with one further digit appended after a dot, and a class code is the group code with one further digit appended. The dot in the code separates the division part from the group and class part, following the pattern described in the manual for the distinction from the coding used in the International Standard Industrial Classification of All Economic Activities.

The background article states the same structure in the terms of the regulation: a second level consisting of headings identified by a two digit numerical code, called divisions. The division heading is therefore a heading in its own right, with its own explanatory note, and not only a prefix for the codes below it. The note for a division states what the division includes, what it excludes, and which classes inside it cover which activities. A reader who needs the scope of a division must read that note, rather than inferring the scope from the division heading or from the class headings below it.

Code form	Level	Example from the manual
Two digits	Division	20
Three digits, with a dot	Group	20.5
Four digits, with a dot	Class	20.51
One letter, not in the numeric code	Section	C, for the section containing division 20

Which division numbers are unused, and why?

The manual lists the division code numbers left unused in NACE Rev. 2.1 as 04, 34, 40, 44, 45, 48, 54, 57, 67, 76, 83 and 89. The reason given is that gaps have been provided to allow the introduction of additional divisions without a complete change of the NACE coding, and that the gaps have been introduced in sections for which it is deemed most likely that there will be a future need for additional divisions. A gap is a reserved number. It is not a category, it has no heading, and it must not be read as a division with no activities. A dataset that jumps from one division number to a later number is showing a gap in the numbering, not a missing category.

One gap has a history that the manual explains. Division 45 is listed as vacated, with a cross reference to the passage on the elimination of the former division 45 for wholesale and retail trade and repair of motor vehicles and motorcycles. The activities from that division were moved to divisions 46, 47 and 95 in NACE Rev. 2.1. The number 45 is therefore unused in the new version, and it stands in the list of gaps as a vacated number, not as a division awaiting use in the same sense as a number that was never used. A reader who sees division 45 in an older dataset must check the correspondence table, because the number does not denote a division in NACE Rev. 2.1.

How does a division differ from a section and a group?

A division differs from a section in granularity and in coding. A section is a letter and a broad area. A division is two digits and a field inside that area. A division differs from a group in the same way, one step further down. The manual states that at higher levels, characteristics of outputs and the use to which outputs are put are more important for creating analytically useful aggregations, while at the lowest level, preference has been given to the process and technique of production. A division therefore groups activities by broader characteristics than a class, and by narrower characteristics than a section. The criteria for divisions and groups are stated in the manual as the character of the goods and services produced, the uses to which they are put, and the inputs, process and technique of production, with the weight assigned to each criterion varying between categories.

A division that is not split illustrates the relationship clearly. The manual states that if a division is not split at all, the group and class must have the same heading as the division, with codes formed by appending a zero at group level and two zeros at class level. Division 75 for veterinary activities, group 75.0 and class 75.00 are given as the example. The division, group and class are three levels with the same heading, because no finer distinction is made inside the division. The hierarchy is preserved, and the codes show the level even where the heading does not change.

What does a division not decide?

A division does not decide the class for an activity, and it does not decide an entry for a business. It narrows the search to a field, and the groups and classes inside it, with their explanatory notes, state the finer distinctions. The institute or register that holds the record confirms an entry, using the notes and the classification rules. A division code is a useful level for presenting statistics, because it aggregates classes into a field that can be compared across countries. It is not a substitute for the class note when the detail matters.

Read the division heading and its note in the manual structure, note any gap in the numbering beside it, and confirm any entry with the national statistical institute or the business register that holds the record.