This report presents new information on the size, composition, and distribution of paid employment in Indiana’s private nonprofit sector. It focuses on nonprofit employment in 2009 and updates and extends our previous analysis of nonprofit employment in 2005.
The nonprofit sector continues to be a major economic force in Indiana, accounting for nearly 1 out of every 11 paid workers in 2009, up from 1 in 12 in 2005. This is more than twice the number of construction or wholesale trade workers. It also exceeds the number of workers in the accommodation and food industry.
Nonprofit employment grew by 5.9 percent between 2005 and 2009, while total employment fell by 5.9 percent and for-profit employment declined by 8.6 percent.
Nonprofit employment growth was concentrated in the health and education industries. From 2005 to 2009 nonprofit employment grew 9.6 percent in healthcare and 4.8 percent in education. By comparison, nonprofit employment decreased among arts, entertainment and recreation, social assistance, and membership organizations.
Nonprofit payroll grew rapidly, despite a decrease in total payroll. Between 2005 and 2009 total payroll decreased by 7.5 percent (adjusted for inflation), while nonprofit payroll increased by 11.2 percent. The overall increase in nonprofit 1 This is the fourth in a series of reports analyzing nonprofit employment trends. A forthcoming report (expected release fall 2011) will examine historical trends in nonprofit employment over the past two decades, including during the recession of the early 2000s and the beginning of the Great Recession. payrolls was driven mainly by education and health care; nonprofit payroll decreased in social assistance and arts, entertainment and recreation.
Nonprofit average annual wages increased from 2005 to 2009. Adjusted for inflation, nonprofit average annual wages grew 5.1 percent while for-profit average annual wages decreased by 2.7 percent. Nonprofit average annual wages grew the most in education (6.7 percent) and membership organizations (5.1 percent), held steady in social assistance, and actually declined in arts, entertainment and recreation (-3.1 percent).
The wage gap between nonprofit and forprofit employees has been reduced by half since 2005. For-profit employees had annual wages 12.5 percent higher than nonprofit employees in 2005; this gap was only 6 percent in 2009.
