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Nonprofit Job Growth

A 10-year analysis shows job growth across the nonprofit sector, according to the Johns Hopkins Center for Civil Society Studies.

A 10-year analysis shows job growth across the nonprofit sector, according to the Johns Hopkins Center for Civil Society Studies.

The center recently shared an analysis of data, funded in part by the Charles Stewart Mott Foundation, which shows the rate of nonprofit job growth has outpaced for-profit job growth by more than 3 to 1 over the past decade.

Key takeaways from the data:

  • Nationally, examining 2007 (pre-recession) and 2016, nonprofit employment grew by 17 percent.

  • Nationally, the nonprofit sector has generated $638.1 billion in wages, the third largest employee payroll among industries.

  • In Michigan, nonprofit jobs have grown 4.7 percent over the past decade, compared to for-profit jobs which have grown 3.3 percent.

  • The Johns Hopkins Center shared with CMF that in 2016, Michigan’s nonprofit sector accounted for 10.9 percent of private employment. That’s above the national average of 10.2 percent.

“This data aligns with what Michigan Nonprofit Association (MNA) is seeing statewide in the sector,” Bill Gesaman, strategic growth officer, MNA said. “MNA’s Job Center has seen job posts rise from 255 in 2012 to 653 in 2018, a 260 percent increase.”

The report also notes that government policies are negatively impacting this job growth by incentivizing for-profit engagement in what were once dominant nonprofit activities. 

The Johns Hopkins Center shared the value of this data to further highlight the economic importance of the sector to policymakers. Nick Deychakiwsky, a CMF member and a program officer who works in two civil society programs at the Mott Foundation agrees.

“It is critical that this kind of data is produced regularly and made easily accessible,” Deychakiwsky, said. “Understanding the ‘big picture’ of the nonprofit sector as an economic driver helps to better inform regulatory policies and give lawmakers insight into how various policy proposals directly and indirectly affect the people they serve.”

The Johns Hopkins Center told CMF they anticipate releasing a deeper dive into the national data later this month. Their interactive Nonprofit Works database will also be updated for those interested in additional information.

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