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News Release

Office of News and Information
Johns Hopkins University
901 South Bond Street, Suite 540
Baltimore, Maryland 21231
Phone: 443-287-9960 | Fax: 443-287-9920

October 5, 2006
(410) 516-8541

Employment Growth in Maryland
Nonprofits Outpaces Businesses

Maryland nonprofit sector employment increases
in all state's regions

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.

"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," said Peter V. Berns, executive director of the Maryland Association of Nonprofit Organizations. "Nonprofits account for 11 percent of private sector employment in Maryland, well above the national average of 8.2 percent.

"Of course, we also shouldn't lose track of the important role nonprofits play in providing programs and services that are vital to our quality of life," Berns added.

Other findings of the report include:

  • 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 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 the professional and scientific services field (4.8 percent); the arts, entertainment and recreation field (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.

  • To view the entire report, including a county-by-county breakdown of nonprofit employment, visit http://www.jhu.edu/ccss.

    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 The Johns Hopkins University, which seeks to quantify the size and scope of nonprofit employment in states throughout the U.S. 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.

    Johns Hopkins University news releases can be found on the World Wide Web at http://www.jhu.edu/news_info/news/
       Information on automatic e-mail delivery of science and medical news releases is available at the same address.

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