This document analyzes major data sources on the U.S. nonprofit sector from 2000-2010. It finds that: 1) nonprofits are a major employer, employing over 10 million people or 10% of private sector employment; 2) they are significant service providers, especially in education and health; 3) nonprofit employment grew dynamically at 2.1% annually compared to a 0.6% decline for for-profits; 4) nonprofits proved resilient during the recession; and 5) they face increasing competition from for-profit firms in some industries like education and healthcare.

1. HOLDING THE FORT: NONPROFIT
EMPLOYMENT DURING A
DECADE OF TURMOIL
S. Wojciech Sokolowski
Johns Hopkins University
March 28, 2012

2. MAJOR NATIONAL DATA SOURCES
ON NONPROFIT INSTITUTIONS
ECONOMIC CENSUS
IRS ADMINISTRATIVE DATA:
EOMF
FORM 990 RETURNS
QUARTERLY CENSUS OF EMPLOYMENT AND
WAGES (QCEW)

3. OUR DATA ASSEMBLY STRATEGY
QCEW IRS
MICRODATA RECORDS
NONPROFIT ECONOMIC
DATA (NED)

4. KEY FINDINGS
1. MAJOR EMPLOYER
2. SIGNIFICANT SERVICE PROVIDER
3. DYNAMICALLY GROWING
4. RESILIENT IN RECESSION
5. FACING FOR-PROFIT COMPETITION

5. FINDING #1
MAJOR EMPLOYER
10.7 million employees
10.1% of pvt employment

6. EMPLOYMENT IN THE NONPROFIT SECTOR
VS. SELECTED INDUSTRIES, 2010
Retail trade 14.5
Manufacturing 11.5
NONPROFIT SECTOR* 10.7
Construction 5.5
Finance & insurance 5.5
Wholesale trade 5.5
Transportation 3.9
Real estate 1.9
Agriculture 1.1
Mining 0.7
Utilities 0.6
millions of persons
*50 states and DC

7. NONPROFIT EMPLOYMENT AS A SHARE OF
PRIVATE EMPLOYMENT, BY REGION, 2010
N=10.7 million

8. FINDING #2
SIGNIFICANT
SERVICE
PROVIDER

9. NONPROFIT EMPLOYMENT 45 STATES
AND DC, BY FIELD, 2010
Civic Other, 4% Professional
associations, services, 2%
7%
Arts, 3%
Education,
15%
Social
assistance, Ambulatory
13% health, 9%
Nursing
homes,
11% Hospitals,
37% Health 57%
N=10.7 million

10. NONPROFIT SHARE OF PRIVATE
EMPLOYMENT, BY FIELD, 2010
EDUCATION 64%
SOCIAL ASSISTANCE 54%
ALL HEALTH 43%
Hospitals 84%
Nursing homes 36%
Ambulatory 16%
OTHER SERVICES 16%
ARTS 14%
PROFESSIONAL SERVICES 3%
Percent of private employment

11. FINDING #3
DYNAMICALLY
GROWING

12. ANNUAL AVERAGE EMPLOYMENT
CHANGE, NONPROFIT VS. FOR-
PROFIT, 2000-2010
2.1%
Nonprofit
For-profit
-0.6%

13. ANNUAL CHANGES IN EMPLOYMENT
NONPROFIT VS. FOR-PROFIT, 2000-2010
2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
3.3%
2.8%
2.6%
2.5%
percent change
2.2%
2.0%
1.9%
1.9%
1.8%
1.6%
1.3%
1.2%
1.0%
0.8%
-1.0%
-1.1%
-0.6%
-1.9%
-0.9%
Nonprofit For-profit
-6.2%

14. AVERAGE ANNUAL CHANGES IN
NONPROFIT EMPLOYMENT, BY REGION,
2000-2010
Region Nonprofit For-profit
Mountain 3.40% 0.30%
South Atlantic 2.60% -0.50%
Pacific 2.10% 0.30%
New England 1.90% -0.90%
West North Central 1.80% -0.20%
Middle Atlantic 1.70% -0.70%
East North Central 1.70% -1.50%
West South Central 1.60% -0.10%
East South Central 1.50% -0.80%
USA* 2.10% -0.60% *45 states
and DC

15. ANNUAL AVERAGE CHANGE IN NONPROFIT
EMPLOYMENT, BY FIELD, 2000-2010
EDUCATION 2.6%
SOCIAL ASSISTANCE 2.2%
ALL HEALTH 2.0%
Hospitals 1.8%
Nursing homes 1.3%
Ambulatory care 3.8%
OTHER SERVICES 1.2%
ARTS 2.7%
PROFESSIONAL SERVICES 0.9%

16. FINDING #4
RESILIENT IN
RECESSION

17. CHANGES IN EMPLOYMENT DURING THE
BUSINESS CYCLE, NONPROFIT VS. FOR-
PROFIT,
45 STATES AND DC
2002-2007 expansion* 2007-2009 recession*
2.0% 1.9%
1.1%
Nonprofit
For-Profit
* Annual averages -3.7%

18. AVERAGE ANNUAL CHANGE IN NONPROFIT
EMPLOYMENT, BY FIELD, 2007-2009
EDUCATION 2.3%
SOCIAL ASSISTANCE 1.5%
ALL HEALTH 2.0%
Hospitals 1.4%
Nursing homes 1.3%
Ambulatory care 3.7%
OTHER SERVICES 0.1%
ARTS 3.1%
PROFESSIONAL SERVICES 2.2%

19. FINDING #5
FACING FOR-
PROFIT
COMPETITION

20. ANNUAL AVERAGE EMPLOYMENT
CHANGE, NONPROFIT VS. FOR-
PROFIT, 2000-2010
EDUCATION 2.6%
4.4%
2.2%
SOCIAL ASSISTANCE 5.4%
ALL HEALTH 2.0%
2.8%
1.8%
Hospitals 0.8%
1.3%
Nursing homes 2.3%
3.8%
Ambulatory care 3.3%
Nonprofit
1.2%
OTHER SERVICES 0.3% For-Profit
2.7%
ARTS 0.1%
0.9%
PROFESSIONAL SERVICES 0.9%

21. NET CHANGES IN NONPROFIT SHARES OF
PRIVATE EMPLOYMENT, BY FIELD, 2000-
2010
EDUCATION (67.5%) -3.9%
SOCIAL ASSISTANCE (61.6%) -7.4%
ALL HEALTH (45.2%) -2.0%
Hospitals (82.6%) 1.5%
Nursing homes (38.5%) -2.2%
Ambulatory care (15.2%) 0.7%
OTHER SERVICES (14.9%) 1.2%
ARTS (11.1%) 2.8%
PROFESSIONAL SERVICES (3%) -0.01%

22. LIKELY EXPLANATIONS OF:
DYNAMISM &
RESILIENCE
• Growth of service sector
• Government funding
• Demographic trends
• Non-profit status

23. LIKELY EXPLANATIONS OF:
FOR-PROFIT
CHALLENGE
• Limited access to capital
• Higher wages and benefits
• State government policies
• Organizational behavior differences

24. THANK YOU
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