Producer Price Indexes

New Producer Price Indexes for Computer Training—NAICS 611420

As part of the ongoing effort to expand service sector coverage in the Producer Price Index (PPI), the Bureau of Labor Statistics (BLS) introduced new price indexes for Computer Training—North American Industry Classification System (NAICS) 611420—in July 2007. Data for this industry, which date back to June 2006, appear in table 5 of the PPI Detailed Report and are available online through the BLS website.

The computer training industry consists of establishments engaged in conducting training in areas such as computer programming, software packages, computerized business systems, computer electronics technology, computer operations, and local area network management. Instruction may be provided in diverse settings, such as the establishment’s or client’s training facilities, educational institutions, the workplace, or the home, and through correspondence, television, Internet, or other means. NAICS 611420 excludes computer repair training.

There are two main categories of courses offered by training firms: client-specific courses and open-enrollment courses. For client-specific courses, registration is reserved for employees of the corporate or government clients who hire the computer training firm. These courses may include the same content as standard open-enrollment courses, or they may be customized to fit the needs of clients. For large clients, courses usually take place at the client’s site. For smaller clients, teaching typically occurs at either the training firm’s site or a rented off-site location.

To measure changes in prices for client-specific courses, computer training firms report estimated contract price data, updated on a monthly basis. During the initial collection period, actual contracts for training services provided to specified clients were selected. In subsequent months, the respondents estimate the price that would be charged if they were to provide the same training service to the same number of students for a similar client.

Open-enrollment training may be provided over the Internet or in a face-to-face setting at the training firm’s site or at a rented off-site location. When open-enrollment courses are offered over the Internet to the general public, customers purchase access to training materials over the Internet for a fee. For this type of transaction, PPI tracks the actual fees received by computer training companies for access to training materials. With open-enrollment courses taught in a face-to-face setting, companies provide price information to the PPI by estimating an actual transaction price for a typical student.

Last Modified Date: August 14, 2007

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