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The newspaper of The Johns Hopkins University November 6, 2006 | Vol. 36 No. 10
Employment Growth in Maryland Nonprofits Outpaces Businesses'

By Mimi Bilzor
Institute for Policy Studies

The employment growth rate in Maryland's nonprofit sector is continuing to outpace the for-profit sector's, a Johns Hopkins University study concludes.

"Our data show that this general trend has continued for the past decade with the nonprofit job growth rate equaling or exceeding that of the for-profit sector in eight of the past 10 years," said Lester Salamon, director of the Center for Civil Society Studies within the university's Institute for Policy Studies and a leading expert on nonprofits.

Statewide, nonprofit employment grew 2 percent between 2003 and 2004, compared to 1.8 percent for the state's for-profit businesses. Between 1995 and 2004, nonprofit employment growth exceeded for-profit growth 27 percent to 16 percent. Maryland nonprofit organizations added more than 4,500 jobs during 2004, the latest year for which data are available. Growth was particularly robust in the Baltimore suburbs, where nonprofit employment grew 4.8 percent. This suggests a continued suburbanization of nonprofit jobs in Maryland, a trend also evident in other states.

Peter V. Berns, executive director of the Maryland Association of Nonprofit Organizations, said, "This report demonstrates that Maryland's nonprofit sector continues to play a more significant role in the economy of the state than is the case in most states. Nonprofits account for 11 percent of private sector employment in Maryland, well above the national average of 8.2 percent," he said, noting "the important role nonprofits play in providing programs and services that are vital to our quality of life."

The study also found the following:

In addition to the high growth rate in the Baltimore suburbs, nonprofit employment increased in all regions of the state, with a growth rate of 3.1 percent on the Eastern Shore, 2 percent in western Maryland and 1 percent in both the Washington suburbs and Baltimore City.

While the nonprofit job growth rate in Baltimore City was lower than the state average, it still outpaced employment in the city's for-profit sector, which declined by nearly 4 percent.

Recent nonprofit job growth in Maryland was especially robust in professional and scientific services (4.8 percent); the arts, entertainment and recreation (4.5 percent); educational services (3.6 percent); and social assistance (3.6 percent).

While nonprofit job growth in the hospital field, at 1.7 percent, was below the state average, nonprofit hospitals still added nearly 1,500 new jobs.

At the end of 2004, Maryland's nonprofit sector accounted for 232,536 jobs. This represents more than 9 percent of all jobs in the state and 11 percent of all private jobs.

In 2004, Maryland's nonprofit organizations paid $9.5 billion in wages, which generated an estimated $432 million of personal income-tax revenue for Maryland's state and local governments and approximately $1.8 billion in federal tax revenues.

The private nonprofit sector comprises private universities, schools, hospitals, clinics, day care centers, social service providers, symphonies, museums, art galleries, theaters, environmental organizations and many others. The report is part of the Nonprofit Employment Data Project at Johns Hopkins, which seeks to quantify the size and scope of nonprofit employment in states throughout the United States. The data in this report draw on reports filed by employers with the Maryland Department of Labor, Licensing and Regulation and cover the period through the end of 2004.

To view the entire report, including a county-by-county breakdown of nonprofit employment, go to


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