Statutory guidance

Annex D: Sector categorisation

Updated 18 November 2025

Applies to England

Occupational and industry classifications - known as Standard Occupational Classification (SOC) and Standard Industrial Classification (SIC) - are frameworks used to group jobs and sectors in a consistent way. These classifications help us describe what people do for work and the types of industries they work in. They are widely used in government, research, and data analysis to understand employment trends, skills need, and economic activity. By using these shared frameworks, we can compare information across regions, industries, and time, and ensure that insights are based on reliable and consistent definitions.

This annex explains why we are encouraging use of these classifications within LSIPs wherever possible. It outlines the benefits, how they can be applied in practice, and where to find more information. Using these codes helps ensure that data and insights are aligned with national analysis and can be used effectively in policy and planning.

Why use SOC and SIC in LSIPs

• consistency and comparability: SOC and SIC are nationally standardised systems, allowing LSIPs to compare local data with regional and national benchmarks, making it easier to compare and collaborate across areas and sectors
• precision in identifying skills needs: SOC codes help pinpoint specific occupations, and SIC codes reveal specific industries, that are growing, declining or transforming – critical for anticipating future workforce needs
• evidence-based decision making: these classifications support data-driven planning, enabling more in-depth understanding of industries and occupations with greatest local demand and aligning training with demand
• future-proofing skills: using SOC codes help identify emerging occupations and track local economic changes, ensuring skills provision remains relevant

Purpose of using SOC and SIC in LSIPs

SOC and SIC codes are organised in a hierarchical structure, starting from broad occupation and industry categories and narrowing down to more specific activities. 

Standard Occupation Classification (SOC)

• SOC2020 is the current system used by the Office for National Statistics (ONS) to classify people for statistical purposes according to their job
• information on SOC2020, including access to the coding index, is available: SOC 2020 - Office for National Statistics
• within the context of the classification, jobs are classified in terms of their skill level and skill content
• it is used for career information to labour market entrants, job matching by employment agencies and the development of government labour market policies

Standard Industry Classification (SIC)

• SIC2007 is the current system used by the ONS to classify business establishments and other statistical units by the type of economic activity in which they are engaged
• information on SIC2007, including access to the coding index, is available: UK SIC 2007 - Office for National Statistics
• the classification provides a framework for the collection, tabulation, presentation and analysis of data, and its use promotes uniformity
• it enables businesses and governments understand what types of industries exist, track how each one is growing or shrinking, and help inform industrial policies

How to use SOC and SIC in LSIPs

• SOC and SIC codes and categorisation should be used where possible throughout LSIPs
• use SOC codes to identify key occupations, track employment trends, and assess skills gaps
• use SIC codes to identify key industries, understand sectoral employment, and align training
• for ease, a breakdown of skill needs by different occupations and industries at SOC and SIC level can be set out in a separate annex
• the annex should include a table that defines the key occupations and industries being focused on and maps them to the most relevant SOC and SIC codes (if mapping is not possible, an explanation should be provided within the table, an example table and supporting resources are provided below)

Example of how to map LSIP occupations and sectors to standard classifications

This table provides examples of how occupation names and descriptions used within an LSIP report could be mapped to relevant SOC and SIC codes.

LSIP Occupation name	Definition within the LSIP report	Relevant SOC Code(s)	LSIP sector name	Relevant SIC Code(s)	Mapping Limitations / Further Information
Graphic and multimedia designers	Creative professionals skilled in digital content creation for marketing, branding, and user experience across emerging digital platforms	2142	Culture and Creative	74.10 – Specialised design activities	SIC code is specific to graphic design. Other multimedia design roles may fall under a different SIC code.
Midwifery nurses	Registered nurses specialising in maternal and neonatal care, supporting safe deliveries and postnatal support within community and hospital settings.	2231	Health and Social Care	86.10 – Hospital activities. 86.21- General medical practice activities, 86.22 -specialist medical practice activities. 86.90 – Other human health activities	The SIC codes capture midwives in both the public and private sectors.
Builders	Skilled construction workers executing residential and commercial projects, with increasing focus on sustainable construction methods and modern building standards.	5319	Construction	41.20/2 – Construction of domestic buildings 41.20/1 – Construction of commercial buildings	This is a wide-ranging occupation and may overlap with other construction and building occupations included within the SOC  minor group 531.

Supporting resources:

1. Cascot Web Tool – Extended SOC2020 for identifying SOC codes which most closely match the description of occupations included within an LSIP report.
2. Cascot Web Tool – SIC2007 for identifying relevant SIC codes once the appropriate SOC code has been identified.
3. Further information on SIC 2007: UK SIC 2007 - Office for National Statistics.
4. Further information on SOC 2020: SOC 2020 - Office for National Statistics.