Nonprofits Add Jobs in Maryland Despite Economic Downturn

By on December 13, 2011

Today, the Center’s Nonprofit Economic Data Project (NED) released the latest Maryland Nonprofit Employment Update, which examines nonprofit employment in Maryland during the current economic downturn. The report was produced as a joint product of the Center and Maryland Nonprofits.
The data examined for this report show that employment in Maryland’s nonprofit sector grew 1.6 percent between 2009 and 2010, while the state’s for-profit businesses experienced a 1.1 percent job loss during the same period. This pattern of nonprofit job growth held true for all regions of the state, although recent growth was slightly lower than the 2.0 percent growth recorded from 2008 to 2009.
Between 2008 and 2010, the strongest growth, 5.5 percent, was found in the health field, but membership and social assistance organizations also added workers. In sharp contrast, employment at the state’s arts and culture organizations declined by 4.3 percent.
“For more than a decade, Maryland’s nonprofit organizations have demonstrated resilience through good and bad economic times,” said Center Director Lester M. Salamon. “But it is clear that the current economic climate is taking a toll on many organizations.”
“This report demonstrates what a critical role nonprofits play in our economy,” said Darryl A. Jones, president and CEO of Maryland Nonprofits. “News of nonprofit growth is good news for everyone since these organizations make a positive difference every day in communities across Maryland.”
Other key findings from include:

  • Nonprofit organizations employed one out of every nine workers in Maryland at the end of 2010, more than all but one other Maryland industry (retail trade).
  • These organizations generated 10 percent of all wages in the state, over $12.4 billion in all. These wages translated into an estimated $881 million of personal income tax revenue for Maryland’s state and local governments.
  • Nonprofit employment growth during the recent 2008-2010 economic downturn was evident in every region of the state, ranging from a 2.9 percent increase in Baltimore City to a 5.0 percent increase in Western Maryland. By contrast, the for-profit sector shed jobs in every one of the state’s regions.
  • The recent pattern of overall nonprofit job growth in Maryland comes on top of a robust average annual growth rate of 2.4 percent per year over the entire period between 1990 and 2007.

You can download the full report here.