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New Report: Nonprofits—America’s Third Largest Workforce

New Report: Nonprofits—America’s Third Largest WorkforceEmployment in America’s nonprofit organizations continued to gain ground on other major industries in recent years according to a new report just issued by the Johns Hopkins Center for Civil Society Studies.

Based on projections from U.S. Bureau of Labor Statistics data, the new report, “Nonprofits: America’s Third Largest Workforce” reveals that as of 2015, America’s nonprofit sector:

  • Has the third largest workforce. The U.S. nonprofit workforce ranks third in size among the 18 major U.S. industries, behind only retail trade and manufacturing.
  • Outdistances manufacturing. In 24 states and DC, nonprofits actually employ more workers than all the branches of manufacturing combined.
  • Is a “major” industry in most states. Economists consider any industry that accounts for 5% of a country’s workforce to be a “major” industry. By this measure, the nonprofit sector is a major industry all but one of the nation’s states and District of Columbia. And in more than half of the states, the nonprofit sector accounts for more than 10% of private employment.
  • Is a major industry at the county level. Data available at the county level reveal that, by this same measure, nonprofits constitute a “major” industry in 1,459 (77%) out of the nearly 1,900 U.S. counties on which data are available. And in 856 (45%) of these counties, nonprofits account for 10% or more of the private workforce.
  • Is a diverse industry with a broad array of services. he health field—embracing hospitals, clinics, and home health services—accounts for 54% of all nonprofit employment, but nonprofits are active in a wide assortment of other fields as well, from education and social services to arts and culture.
  • Is a dynamic presence. Nonprofits continued to gain ground as employers between 2012 and 2015 on nine industries: manufacturing, wholesale trade, finance and insurance, and a collection of six smaller industries.

Nonprofit employment data now available online. Access to updated nonprofit employment data nationally and by state and county is now available online through Nonprofit Works, an interactive data base created by the Johns Hopkins Center for Civil Society Studies.

Download the full report.

Lester M. Salamon is a professor at the Johns Hopkins University and director of the Johns Hopkins Center for Civil Society Studies. He is a pioneer in the study of the nonprofit sector, philanthropy, and the tools of government. Chelsea Newhouse is the center's communications associate.

Topics: Nonprofits and the Economy U.S. Nonprofit Sector Nonprofit Sector Statistics