How to Read ISCO and NACE

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What ISCO and NACE are

ISCO and NACE answer two different questions. ISCO, the International Standard Classification of Occupations, organises the kinds of work people do — it groups jobs and occupations into a shared structure. NACE, the classification of economic activities used across the European Union, organises what organisations do — it groups economic activities and industries. One describes the role; the other describes the sector the role sits in.

They are maintained by different bodies. ISCO is developed internationally by the International Labour Organization, while NACE is the European framework maintained by Eurostat for the EU. Reading them side by side, rather than treating them as interchangeable, is the key to interpreting official data correctly.

How each one is structured

• Both move from broad categories down to progressively more specific ones.
• ISCO arranges occupations into a layered structure, from wide groups of work to particular jobs.
• NACE arranges economic activities into sections that are divided into narrower groups.
• Each system attaches codes so a category can be referenced precisely.
• ISCO is occupation-focused and international; NACE is activity-focused and European.

How employers and candidates use them

• Use ISCO when the question is about the type of role or occupation.
• Use NACE when the question is about the sector or economic activity.
• Read both together to place a role within its wider industry context.
• Use them to interpret official statistics that are organised by occupation or by activity.
• Treat them as complementary references rather than as one combined system.

Why it matters for employers

• It helps an employer describe a role (ISCO) and its sector (NACE) without mixing them up.
• It supports reading sector and occupation data with the right lens.
• It makes job descriptions and workforce planning clearer and more consistent.
• It provides a shared frame when working with partners or authorities.

Why it matters for candidates

• It helps a candidate identify the occupation that matches their work.
• It clarifies the sector an employer operates in.
• It makes official labour-market information easier to interpret.
• It supports relating a role and an industry across different countries.

Read them at the official source

This is a general explainer written in our own words to make the difference clear. The authoritative structures, category names and codes for ISCO and NACE are published by the International Labour Organization and by Eurostat respectively, and they can be revised. Always confirm the detail at the official sources rather than relying on a summary.