MARYLAND NONPROFIT EMPLOYMENT UPDATE

Nonprofit Employment Bulletin no. 42 February 2013 MARYLAND NONPROFIT EMPLOYMENT UPDATE by LESTER M. SALAMON and STEPHANIE L. GELLER, with the technical assistance of S. WOJCIECH SOKOLOWSKI Johns Hopkins University A joint product of the Johns Hopkins Center for Civil Society Studies and Maryland Nonprofits INTRODUCTION Maryland s nonprofit organizations continue to play a dominant role in the state s economy and economic recovery, according to a new Johns Hopkins analysis of employment data assembled by the Maryland Department of Labor, Licensing, and Regulation (DLLR) under the Federal Government s Quarterly Census of Employment and Wages program (QCEW). This data set is collected under the Unemployment Insurance mandate and provides a more timely, accurate, and comprehensive picture of employment and wages than any other source. FIGURE 1 Number of paid workers in Maryland nonprofit sector vs. selected industries, 2012 (Q1) Retail trade NONPROFITS Nonprofits Local government Federal government Construction Manufacturing State government Finance & insurance Transportation Information Real estate 43,490 41,544 94,675 75,570 109,425 102,219 146,396 137,946 266,742 246,439 279,090 Source: Johns Hopkins Nonprofit Economic Data Project based on QCEW data. NONPROFITS: A MAJOR ECONOMIC FORCE Maryland s private nonprofit organizations employed 266,742 workers at the end of the first quarter of 2012. As shown in FIGURE 1, this workforce makes Maryland s nonprofit sector the second largest industry in the state in terms of employment, behind only retail trade. More specifically, Maryland nonprofits employ: Nearly six and a half times as many workers as the real estate industry. More than six times as many workers as the information industry. About three and a half times as many workers as the transportation industry. Nearly three times as many workers as the finance and insurance industry. More than two and a half times as many workers as state government. About two and a half times as many workers as the manufacturing industry. Nearly twice as many workers as the construction industry. In fact, Maryland nonprofits represent nearly 11 percent of the state s total workforce (one out of every 9 workers) and 13.5 percent of the state s private workforce (one out of every 7 private workers), which is more than the state s real estate, information, transportation, and finance and insurance industries combined. Moreover, this ranks Maryland well above the U.S. average (U.S. nonprofits employ 8.4 percent of the nation s total workforce) and the South Atlantic region average of just 7.1 percent. In addition to paid employment, Maryland nonprofits engaged over 100,000 full-time equivalent volunteers. 1 With volunteers included, the total nonprofit workforce in Maryland exceeds 367,000 people, more than any other industry in the state. 1 This is an estimate based on data from the September 2011 Supplement to the Current Population Survey conducted by the Bureau of Labor Statistics (BLS). Maryland' s Nonprofit Employment Update Nonprofit Economic Data Bulletin no. 42 Page 1

M A R Y L A N D N O N P R O F I T E M P L O Y M E N T I N 2 0 1 2 DIVERSE ORGANIZATIONS Maryland s nonprofits are active in a range of fields. As shown in FIGURE 2, while more than half (57 percent) of all nonprofit employees work in the health care industry, significant proportions also work in education (16 percent) and social assistance (10 percent). Regionally, Baltimore City boasts the highest number of the state s nonprofit workers; however, over 52 percent all Maryland nonprofit employees now work in the Baltimore and Washington suburbs, as illustrated in FIGURE 3. FIGURE 2 Distribution of nonprofit employment by field, 2012 (Q1) Nursing homes, 12% Social assistance, 10% Hospitals, 38% Arts, entertainment, & recreation, 2% Professional services, 5% Despite the large number of nonprofit workers in the suburbs, nonprofit organizations actually account for a larger proportion of total private jobs in Baltimore City and the rural areas of the state. Thus, nonprofits account for over a third (36 percent) of all private jobs in Baltimore City, and 12-13 percent of all private jobs on the Eastern Shore and in Western Maryland compared to 10 percent of private jobs in the Washington and Baltimore suburbs. These data and county-level breakdowns of nonprofit employment are detailed in the APPENDIX. Source: Johns Hopkins Nonprofit Economic Data Project based on QCEW data Colleges, 9% Ambulatory health, 7% Elementary & secondary education, 7% Other, 5% Civic organizations, 6% FIGURE 3 Distribution of nonprofit employment by region, 2012 (Q1) Source: Johns Hopkins Nonprofit Economic Data Project based on QCEW data. Maryland' s Nonprofit Employment Update Nonprofit Economic Data Bulletin no. 42 Page 2

M A R Y L A N D N O N P R O F I T E M P L O Y M E N T I N 2 0 1 2 CONTINUED GROWTH AMIDST MOUNTING COMPETITION Between the first quarters of 2010 and 2012, Maryland s nonprofit sector grew by 3.7 percent, which was marginally above the 3.6 percent growth rate experienced by the state s for-profit sector. Notably, the sector s growth between 2011 and 2012 was 75 percent more rapid than its growth between 2010 and 2011 (2.3 percent vs. 1.3 percent), which likely reflects its continued recovery following the recent national recession. Moreover, nonprofits operating in almost all major fields of activity experienced growth between 2010 and 2012. The nonprofit ambulatory health field experienced the most significant growth expanding by 11.8 percent, and exceeding the growth rate of the for-profit ambulatory health field over this two-year period. The one exception was the nursing home field, which contracted by.5 percent. However, for-profit entities operating in traditionally-dominated nonprofit fields also experienced growth between 2010 and 2012, often at a pace that exceeded nonprofit growth. As a result, nonprofits actually lost market share to for-profits in key fields including education, performing arts, social assistance, nursing home care, and professional services, as shown in FIGURE 4. This suggests that nonprofits in most fields may be experiencing increased competition. Given the importance of the sector to the state s economic, social and cultural fabric, understanding this trend is critical to ensuring the sector s health into the future. FIGURE 4: Employment changes, nonprofit vs. for-profit, by selected industry, 2010 (Q1) to 2012 (Q1) Ambulatory health Civic organizations Professional services Social assistance Arts, entertainment, & recreation Hospitals Education Nursing homes P E R C E N T C H A N G E I N E M P L O Y M E N T 11.8% 7.7% 6.7% -1.8% 4.6% 5.4% 4.5% 7.8% NONPROFIT 3.2% 9.5% 2.6% -5.5% 1.4% 11.2% -0.5% 4.5% FOR-PROFIT Source: Johns Hopkins Nonprofit Economic Data Project based on QCEW data Maryland' s Nonprofit Employment Update Nonprofit Economic Data Bulletin no. 42 Page 3

M A R Y L A N D N O N P R O F I T E M P L O Y M E N T I N 2 0 1 2 APPENDIX Nonprofit employment in Maryland vs. for-profit employment, by region, 2012 (Q1) REGION / COUNTY TOTAL NONPROFIT EMPLOYMENT TOTAL PRIVATE EMPLOYMENT EMPLOYMENT IN MANUFACTURING (2011) NONPROFIT EMPLOYMENT AS % OF TOTAL PRIVATE EMPLOYMENT WASHINGTON SUBURBS 64,515 638,683 21,585 10.1% Calvert County 1,963 16,982 637 11.6% Charles County 2,079 30,636 685 6.8% Montgomery County 43,717 355,171 11,802 12.3% Prince George's County 14,508 207,703 7,976 7.0% Saint Mary's County 2,247 28,190 485 8.0% BALTIMORE SUBURBS 75,806 732,858 48,249 10.3% Anne Arundel County 75,806 732,858 48,249 10.3% Baltimore County 15,354 189,691 14,145 8.1% Carroll County 37,808 298,412 19,255 12.7% Harford County 5,197 46,419 4,067 11.2% EASTERN SHORE 16,079 123,337 14,589 13.0% Caroline County 1,187 6,763 1,185 17.5% Cecil County 1,979 21,951 4,084 9.0% Dorchester County 1,186 8,192 2,055 14.5% Kent County 1,556 6,239 785 24.9% Queen Anne's County 445 10,465 782 4.2% Somerset County 759 3,318 213 22.9% Talbot County 2,688 15,352 966 17.5% Wicomico County 5,098 35,693 3,838 14.3% Worcester County 1,182 15,364 681 7.7% WESTERN MARYLAND 19,379 162,354 14,737 11.9% Allegany County 3,984 22,089 2,510 18.0% Frederick County 7,521 74,594 4,677 10.1% Garrett County 1,077 9,430 1,048 11.4% Washington County 6,797 56,241 6,502 12.1% BALTIMORE CITY 89,536 251,654 12,825 35.6% UNCLASSIFIED 1,428 66,024 1,047 2.2% MARYLAND TOTAL 266,742 1,974,911 113,033 13.5% Source: Johns Hopkins Nonprofit Economic Data Project based on QCEW data ABOUT THIS REPORT For the purpose of this report, the nonprofit sector includes all 501 (c)(3) organizations registered with the State of Maryland. This embraces private, not-for-profit universities, hospitals, clinics, social service agencies, day care centers, orchestras, symphonies, museums, art galleries, theaters, homeless shelters, soup kitchens, and many more. The one major exclusion is religious organizations, although the significance of this exclusion is unknown as some religious organizations elect to be covered by unemployment insurance as provided for in the law. ACKNOWLEDGEMENTS We are grateful to the Maryland Department of Labor, Licensing and Regulation for generating the data on which this report is based; to Greg Cantori and his staff at Maryland Nonprofits; and to Chelsea Newhouse (design, production, and editorial guidance) at The Johns Hopkins University. SUGGESTED CITATION Maryland Nonprofit Employment Update by Lester M. Salamon and Stephanie L. Geller (Baltimore: Johns Hopkins Center for Civil Society Studies, February 2013). The full text of this report is available at ccss.jhu.edu. MARYLAND NONPROFITS 1500 Union Avenue, Suite 2500, Baltimore, MD 21211 8720 Georgia Ave, Suite 303, Silver Spring MD, 20910 410.727.6367 marylandnonprofits.org JOHNS HOPKINS CENTER FOR CIVIL SOCIETY STUDIES 3400 N. Charles St,, Wyman Building, 5th Floor, Baltimore, MD 21218 410.516.5463 ccss@jhu.edu ccss.jhu.edu Maryland' s Nonprofit Employment Update Nonprofit Economic Data Bulletin no. 42 Page 4