Businesses, Employees


BusinessCounts is a geographic summary database of business establishments, employment, and occupation,   The core BusinessCounts data, which now utilizes the industry standard InfoUSA database as its primary source data, includes data to the major SIC group with detailed establishment types.  The database is available at the block group level and higher, including all standard geographic aggregations.

 

BusinessCounts is a vital addition to residential demographic data, in that the success of many business establishments is dependent upon not only the residential population, but also the working population during the daytime.   Based primarily on the InfoUSA business database and supplemented by various public data sources, BusinessCounts provides a clear look at the range and size of establishments and their employees within any geographic area.

 

Content.

BusinessCounts is a geographic summary database of business establishments and employees for nearly ten million businesses and one hundred and thirty million employees.   The database is available for all standard levels of geography including block group.

 

BusinessCounts is a geographic compilation of the InfoUSA business list, supplemented by occupational data from the Bureau of Labor Statistics and the County Business Patterns program.   The primary variables available include:

 

  • Total                 Establishments, Employees,
  • Size                  Establishments by size
  • Occupation        Employment by occupation
  • Major Industry    Establishments, Employees
  • NAICS - Establishments, Employees by 3 and 4 digit

     

 

Methodology and Data Sources

The core source for the InfoUSA Business Database that is built from a careful integration of commercial databases, compiled white and yellow page directory data, city directories, corporate annual reports, and securities filings.   The BusinessCounts file is current to January 2007.

 

In years past, a different data source was used by AGS to compile this database, and users should review the notes at the end of this document that outline the type and scope of the impacts of the change in source data.   The primary changes that will be noted by users include:

:

  • The ability to release establishment level data for use in mapping applications, with selection based on company name, SIC, geographic area, and company size
  • A greatly expanded number of establishments, many of which are small and unclassified, but nevertheless reflect changes in the corporate landscape
  • Improved SIC coding at establishments which include more than one major industrial group
  • Reduced duplication of records – and subsequent over counting of employment – at companies which contain multiple legal entities at the same address

 

The database has been thoroughly cleansed for address consistency and geocoded.   Virtually all records within the database are geocoded, although in some cases with less positional accuracy than others.

 

SIC Classification

A significant number of establishments are not SIC coded within business list files, most often including those small firms for which neither private nor public records exist.   Many of these uncoded firms are simply individual holding companies, DBA (“doing business as”) names, and new firms that have not yet been well documented in multiple sources.  

 

Employees

The file includes both a size classification (e.g. 1 to 4 employees) and in a significant number of records, verified employee counts.   When an actual employee count was given, this was used directly.

 

In order to estimate employees for those establishments either only a size class range is available, the latest County Business Patterns (CBP) database, published annually by the Census Bureau was thoroughly analyzed.   For each four digit SIC code, the average number of employees per establishment of each size class was computed in order to provide a base estimate.    These were further refined by using major industry average sizes by county, since much of the county level detail is suppressed within the CBP in order to avoid the possible disclosure of individual establishment employee, payroll, and sales volumes.

 

Once the initial estimates were applied, the results were evaluated on a county level basis in order to ensure consistency with county totals for each major SIC group, and nationally to ensure consistency with the detailed four digit SIC level.

 

It should be noted that the employee size estimates for the Public Administration (SIC 91-98) major group are not particularly accurate.    Employee estimates for individual government offices are simply not easily obtained and are generally afforded less attention by the major business list providers than private sector establishments.   Further, neither the CBP not the Economic Census databases cover this important sector of the economy.   The total employee estimate is therefore rather low for this sector as a whole.

 

Occupation

The occupation estimates were created using the 1996 Industry Staffing Patterns Estimate file, obtained from the Occupational Employment Statistics (OES) Survey, conducted by the Bureau of Labor Statistics.   The occupational classification used by the OES was converted to the Census Occupational categorization using a translation file obtained from the NOICC Crosswalk and Data Center (NCDC), a technical resource center of the National Occupational Information Coordinating Committee (NOICC).

 

Comparability to Other Sources

Several additional sources of national and state level estimates from the BLS (Bureau of Labor Statistics) and the Census Bureau were used to verify summary counts in the final database.   In general, the database agrees substantially with these estimates.    The major sources of difference occur in several areas.   These areas of disagreement are noted below:

 

  • Manufacturing employment in BusinessCounts is higher than corresponding statistics from the BLS. In large part, this reflects the use of the “primary” industry within BusinessCounts. Often, many manufacturing companies also have wholesale trade and finance divisions. The employment within these divisions is attributed to the main SIC category in this file, hence manufacturing estimates are higher than in BLS sources.

  • Agricultural establishments, specifically farms, tend to be underreported in the database, so total agricultural establishment and employment counts are low relative to other sources. The so-called “primary” sector is not typically well represented in either the economic censuses or the annual County Business Patterns files, and is subsequently difficult to estimate with reliability.

  • Service employment in the BusinessCounts file is higher than in equivalent BLS sources, primarily as a result of classification issues. In official BLS reports, educational institutions and employment is reported within the appropriate level of government (e.g. state versus local) whereas in BusinessCounts, these are reported in the educational services category.

 

In addition, many public and quasi-public agencies are coded to the type of service they provide rather than as public sector establishments. Public sector estimates in BusinessCounts are therefore lower than published figures by an amount roughly equivalent to the over-count in services. In addition, the tendency within business list products such as InfoUSA is to put more emphasis on private sector establishments than on public sector establishments. Subsequently, in many cases not only is there no actual employee count, but often no size class information as well. Since the Census Bureau surveys of establishments typically exclude public sector establishments, and what statistics are available are typically only at a state level, the public sector employment estimates are substantially underestimated and should not be relied upon for many analytical applications.

 

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