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ETP adopts NAICS priority‑industry changes, keeps computer systems design after debate
Summary
After a data presentation and panel discussion, the Employment Training Panel approved adding 56 NAICS codes to priority‑industry status, removing seven codes but retaining the computer systems design code following member concerns and a public comment about hospitals.
The Employment Training Panel on April 25 adopted staff recommendations to adjust priority‑industry NAICS codes for fiscal 2025–26, adding 56 establishments and removing seven that staff said do not align with ETP legislation or state initiatives. Following discussion about volatility in information‑technology categories, panel members moved to retain the computer systems design and related services code even as other changes proceeded.
Jerry Jerome of ETP's data analytics unit and Brandon from the EDD's Labor Market Information Division presented the data underlying the recommendations, citing employment projections, average weekly wages and state policy priorities such as clean‑energy transition and film/media growth. Jerome said staff aimed to "standardize ETP's approach relying on scientific data" and emphasized that priority status does not guarantee funding but can allow higher reimbursement or lower wage thresholds on a case‑by‑case basis.
Panel members raised concerns about removing codes tied to innovation and high‑wage employers. Member Mike Hill asked about the rationale for a proposed removal of certain computer systems design codes; staff said volatility and short‑term declines in posting and employment within those narrow codes informed the recommendation. After debate, a motion to retain the computer systems design listing while adopting other recommended code changes carried by roll call vote.
Public comment: Michelle Rickner of Training Funding Partners asked the panel to reconsider the removal of hospitals from priority status, noting workforce shortages and high turnover in health care; staff responded that hospital activities map to different NAICS codes and that the panel's designations are driven by a combination of data and statutory criteria.
What happens next: Staff will update the priority‑industry listings on the ETP website and apply the revised code set to FY25‑26 funding considerations. Employers can check the ETP funding‑priority page to determine whether they qualify for priority benefits.
