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The newspaper of The Johns Hopkins University August 8, 2005 | Vol. 34 No. 41
Maryland Nonprofit Employment Continues to Grow

Workers in state earn $8.6 billion annually; job growth leads other sectors'

By Glenn Small

While job growth in the for-profit sector in Maryland has remained stagnant, the state's nonprofit sector continues to grow, adding 4,300 new jobs in 2003, the latest year for which statistics are available.

According to a study by Johns Hopkins researchers, the number of Maryland residents employed by nonprofits grew to 228,031 paid workers by the end of 2003. That's a 2 percent increase over 2002 and means that nonprofit workers now account for 9 percent of the state work force; the for-profit sector, by comparison, grew by one-10th of 1 percent.

"What is striking is how the nonprofit sector continues to serve as a countervailing influence to the lack of job growth in the state's business sector," said Lester Salamon, director of the Johns Hopkins Center for Civil Society Studies within the university's Institute for Policy Studies and a leading expert on nonprofits. "Even during the recent economic downturn, job growth has persisted in the nonprofit sector and has outstripped that in the for-profit sector."

"One of the key things to know about this study is the amount of tax revenue generated by these nonprofit sector jobs," said Peter Berns, executive director of the Maryland Association of Nonprofit Organizations, which helped establish this annual jobs study and helps disseminate the results. "There's a perception that nonprofits don't contribute to the tax rolls, but in 2003 alone, nonprofit jobs produced close to $2 billion in state and federal income tax revenue." Nonprofit workers earned $8.6 billion in 2003.

The report is part of the Johns Hopkins Nonprofit Employment Data Project, which seeks to quantify the size and scope of nonprofit employment in Maryland and elsewhere in the United States.

Some other key findings of the latest Maryland report:

More people in Maryland work for nonprofits than in manufacturing or construction.

Close to one-third of all private jobs in Baltimore City — 28 percent — derive from the nonprofit sector, which leads the state and emphasizes the importance of the nonprofit sector in Baltimore. Thirty-six percent of all nonprofit employment in the state is in Baltimore City.

Job growth in the nonprofit sector was strongest in the suburbs surrounding Baltimore and Washington and now accounts for 52 percent of all nonprofit employment in Maryland.

The nonprofit sector employs twice as many workers as do the state's entire banking, finance and insurance industries combined.

Nonprofit employment in Maryland's rural areas remains strong; a full 12 percent of the state's nonprofit jobs are in Western Maryland and on the Eastern Shore.

Over the past decade, nonprofit employment in Maryland has grown 29 percent, while private for-profit employment has grown 16 percent.

The private nonprofit sector is comprised of private universities, schools, hospitals, clinics, day care centers, social service providers, symphonies, museums, art galleries, theaters, environmental organizations and many others. To view the entire report, including a jurisdiction-by-jurisdiction breakdown of nonprofit employment, go to

The data in this report draw on reports filed with the Maryland Department of Labor, Licensing and Regulation by employers and cover the period through the end of 2003.

The Johns Hopkins Center for Civil Society Studies is publishing this report in collaboration with the Maryland Association of Nonprofit Organizations, the largest state association of nonprofit organizations in the United States, with more than 1,500 members representing a wide array of nonprofit activity.

For more information, visit the CCSS Web site at


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