Indiana Nonprofit Education Employment Update
Read the updated report which includes employment data through 2019.
Key Findings in the Nonprofit Education Employment, 1995-2019:
Total employment in the education industry in Indiana grew 29 percent over the 1995-2019 period, up from 194,000 workers in 1995 to just under 251,000 workers in 2019. This is faster than the growth in total paid employment, up 13 percent, from 2.7 million in 1995 to 3.1 million in 2019.
Education’s nonprofit sector grew much faster, up 83 percent over the 1995-2019 period, from just under 22,000 employees in 1995 to just below 40,000 in 2019. As a result, 16 percent of paid employees in educational establishments worked for nonprofits in 2019, compared to 11 percent in 1995.
The average annual growth of nonprofit employment in education was 3 percent from 1995 to 2019. Nonprofit employment increased for 22 years of the 25-year period, decreasing by less than 1 percent in 2006 and 2017. The much smaller for-profit education employment also grew at an average annual rate of 3 percent over during full period but declined for 8 years of those years.
The very large government employment grew at an average annual rate of at 1 percent and declined for 7 of the 25 years.
Nonprofit payroll for education grew faster than employment, up 120 percent up from $810 million in 1995 to $1.8 billion in 2019 (in constant 2019 dollars). Nonprofit payroll increased every year except for 2018 at an average annual rate of 3 percent.
Education has seven subindustries that differ greatly in workforce sizes. Elementary and secondary schools and colleges are the two largest subindustries. Junior colleges and other schools follow, with significantly fewer employees and a smaller increase in employment. Educational support services, technical schools, and business schools employ the fewest workers. Educational support services grew rapidly over time, technical schools grew slowly, while employment in business schools decreased.
Nonprofits are concentrated in the two largest industries. Most of the nonprofit workforce is concentrated in colleges, followed by elementary and secondary schools. The remaining industries have significantly fewer nonprofit employees.
The seven subindustries differ in how important nonprofits are. Educational support services has the highest nonprofit share at 49 percent. Colleges, other schools, and technical schools have slightly lower shares, with the lowest nonprofit share found in the elementary and secondary schools subindustry (which is dominated by the public sector).
Nonprofit Education Organization Employment, 1995-2009
Report Summary
Key Findings in Nonprofit Education, 1995‐2009:
- Nonprofit employment in education grew faster than employment in other major nonprofit industries.
- In 2001, the education industry became the second largest nonprofit employer after health care.
- Employment within the education industry increased steadily even during the Great Recession, demonstrating the strength of demand for education even during weak economies.
- Annual wages in education increased steadily over the period, at a rate that exceeded most other nonprofit industries.
- In terms of wages, staff size, and payroll, nonprofits tended to look much more like government institutions than for‐profit institutions.
- Caution should be used when comparing nonprofit and for‐profit establishments in education because of the vastly different services provided and clientele reached.