INTRODUCTION Nonprofit organizations contribute to the quality of life for all Pennsylvania citizens through the health care, education, job training, youth development, nursing home care, arts, culture, and other services they provide, and through the opportunities they offer for democratic participation in the life of Pennsylvania communities. What is not widely appreciated, however, is that nonprofit organizations are also a major force in the state s economy, and in the economies of all the state s counties. The data in this report are drawn from the Quarterly Census of Employment and Wages (QCEW) administered by the U.S. Bureau of Labor Statistics in cooperation with the Pennsylvania Department of Labor and Industry. This is the most timely, accurate, and comprehensive picture of and wages available. While the QCEW covers 97% of nonprofit, however, neither the state information department nor the federal BLS has routinely broken out the nonprofit separately. Working with the Johns Hopkins Center for Civil Society Studies, the BLS has initiated a program to report on nonprofit periodically at the state level. This report draws on this BLS data and on county level tabulations carried out by the Johns Hopkins Center. Page 1
KEY FINDINGS FINDING #1: Pennsylvania s largest workforce The 776,258 workers employed by Pennsylvania nonprofits make the nonprofit sector the largest employer of any of the state s 18 major industries outdistancing such industries as retail trade, manufacturing, finance and insurance, and construction by substantial margins. (FIGURE 1) FINDING #2: Generator of wages and tax revenue The 776,258 nonprofit employees in Pennsylvania earned over $36.2 billion in wages in 2012 15.4% of the state s total private wages. These wages in turn provided income to other state businesses and generated sales and income tax revenue for Pennsylvania s state and local governments an estimated $627.5 million in state revenues and $265.7 million in local government revenues from income tax payments alone. FIGURE 1: Nonprofit vs. in major industries, PA, 2012 NONPROFIT SECTOR Retail trade Manufacturing Professional and technical services Administrative and waste services Finance and insurance Wholesale trade Construction Transportation and warehousing Management of companies Information Real estate and rental 90,308 58,553 129,513 251,387 228,135 225,676 207,913 316,670 285,247 566,887 776,258 633,738 NUMBER OF PAID WORKERS Page 2
FINDING #3: Broad contributor to the quality of life of Pennsylvanians Two thirds of all nonprofit jobs in the state are in the health care and social services fields. Hospitals account for 32% of these jobs and higher education for 14%. The remaining 54% of nonprofit jobs are in social services, clinics, elementary and secondary education, and numerous other fields. (FIGURE 2) FIGURE 2: Distribution of nonprofit by field, PA, 2012 Ambulatory health 11% Nursing homes 14% Social assistance 10% Colleges and universities 14% Hospitals 32% Other fields 6% Primary and secondary education 4% Other education 3% Civic associations 5% Arts, entertainment, and recreation 1% FINDING #4: Decent wages On average, annual wages of nonprofit employees are lower than those of forprofit and government workers. But, in the three industries in which nonprofits are most heavily involved health, social services, and education nonprofit wages generally exceed those paid by forprofits by significant margins. (FIGURE 3) FIGURE 3: Distribution of nonprofit by field, PA, 2012 All fields Educational services Health care and social assistance Arts, entertainment, and recreation Civic associations Nonprofit For-profit $29,997 $29,545 $27,443 $29,102 $35,920 $41,881 $46,637 $48,432 $46,291 $53,744 AVERAGE ANNUAL WAGES Page 3
FINDING #5: Not just an urban phenomenon In terms of geographical distribution, Philadelphia County boasts the highest proportion of the state s nonprofit workers at 21%; Allegheny County represents the second largest concentration of the nonprofit workforce with 16% of the total. However, as shown in FIGURE 4, the nonprofit sector represents 10% or more of private in 47 of the 65 counties on which data are available. In fact, the nonprofit sector accounts for almost as large a share of Pennsylvania s total private in rural areas as it does in urbanized ones (14.5% vs. 15.8%). For a comparison of nonprofit and manufacturing in Pennsylvania counties, see Appendix A. * Note: Montour County is a largely rural area that is the home of a major nonprofit medical center that is the county s main employer, producing an usually high nonprofit share of total private. FIGURE 4: Nonprofit percent of private by county, PA, 2011 Montour* Philadelphia Union Bradford Mifflin Huntingdon Allegheny Cambria McKean Erie Mercer Delaware Clearfield Crawford Clarion Lackawanna Adams Lehigh Dauphin Tioga Wayne Elk Somerset Lycoming Franklin Beaver Armstrong Warren Venango Blair Fulton Lawrence Lebanon Fayette Jefferson Cameron York Carbon Indiana Lancaster Centre Berks Butler Susquehanna Montgomery Washington Northampton Chester Luzerne Cumberland Bucks Westmoreland Schuylkill Monroe Northumberland Columbia Greene Snyder Perry Clinton Bedford Wyoming Pike Sullivan Juniata 21.0% 20.1% 19.8% 19.7% 19.4% 18.5% 18.2% 18.0% 18.0% 17.6% 17.4% 17.1% 16.9% 16.7% 16.6% 16.4% 15.4% 14.9% 14.3% 14.3% 14.2% 14.2% 14.1% 14.0% 13.8% 13.4% 13.3% 13.3% 12.9% 12.4% 12.3% 12.0% 11.5% 11.3% 11.3% 11.1% 10.9% 10.9% 10.6% 10.6% 10.6% 10.6% 10.0% 10.0% 9.5% 9.5% 9.4% 9.4% 9.3% 9.0% 8.8% 8.1% 7.8% 7.7% 7.0% 7.0% 7.0% 6.9% 6.0% 4.5% 4.2% 3.2% 30.8% 28.4% 0% 10% 20% 30% 40% 50% 60% 70% PERCENT OF PRIVATE EMPLOYMENT 70.0% Page 4
PERCENT CHANGE Pennsylvania Nonprofits: A Major State Industry Salamon and Sokolowski FINDING #6: Robust contributor to state job growth The nonprofit sector is also a major driver of job growth in Pennsylvania. Between 2007 and2012, nonprofits added 40,235 jobs a net change of 5.5% while the forprofit sector lost 89,701 jobs, shrinking by 2.1% over the same period. (FIGURE 5) FIGURE 5: Change in, nonprofit vs. for-profit, PA, 2007-2012 5.5% -2.1% Nonprofit For-profit CONCLUSION In short, beyond the enormous contribution they make to the health, education, well-being, and quality of life of Pennsylvania citizens, Pennsylvania s nonprofit sector is an important state industry, employing more people than any other of the state s major industries, growing faster than the state s private business sector, and generating revenues for other businesses and for state and local governments. Page 5
APPENDIX A Nonprofit vs. manufacturing by county, PA, 2011 Nonprofit Share of nonprofit Nonprofit share of private Manufacturing State Total 768,741 100% 15.9% 564,734 Adams 4,621 0.60% 16.7% 6,221 Allegheny 119,930 15.60% 19.7% 36,494 Armstrong 2,081 0.27% 14.0% 2,061 Beaver 6,541 0.85% 14.1% 7,316 Bedford 898 0.12% 6.9% 1,957 Berks 14,999 1.95% 10.6% 28,329 Blair 6,655 0.87% 13.3% 7,436 Bradford 4,377 0.57% 21.0% 4,314 Bucks 21,021 2.73% 9.4% 27,401 Butler 7,631 0.99% 10.6% 12,491 Cambria 9,252 1.20% 19.4% 4,302 Cameron 201 0.03% 11.5% 983 Carbon 1,587 0.21% 11.3% 1,817 Centre 4,675 0.61% 10.9% 4,113 Chester 20,420 2.66% 9.5% 20,498 Clarion 1,845 0.24% 17.1% 1,250 Clearfield 4,569 0.59% 17.6% 2,505 Clinton 751 0.10% 7.0% 3,016 Columbia 1,616 0.21% 7.8% 5,267 Crawford 4,505 0.59% 17.4% 7,078 Cumberland 9,980 1.30% 9.4% 8,045 Dauphin 22,154 2.88% 16.4% 11,643 Delaware 32,638 4.25% 18.0% 15,818 Elk 1,968 0.26% 14.3% 6,177 Erie 19,837 2.58% 18.2% 21,420 Fayette 4,267 0.56% 12.3% 4,062 Franklin 6,580 0.86% 14.2% 8,320 Fulton 514 0.07% 13.3% 1,591 Greene 901 0.12% 7.7% 385 Huntingdon 1,942 0.25% 19.8% 1,634 Page 6
Nonprofit Share of nonprofit Nonprofit share of private Manufacturing Indiana 3,022 0.39% 11.1% 2,575 Jefferson 1,662 0.22% 12.0% 3,708 Juniata 166 0.02% 3.2% 2,090 Lackawanna 14,482 1.88% 16.9% 9,701 Lancaster 21,638 2.81% 10.9% 35,682 Lawrence 3,188 0.41% 12.9% 3,625 Lebanon 4,986 0.65% 12.4% 8,918 Lehigh 25,956 3.38% 16.6% 15,841 Luzerne 11,476 1.49% 9.5% 14,903 Lycoming 6,386 0.83% 14.2% 9,240 McKean 2,529 0.33% 18.5% 3,121 Mercer 7,578 0.99% 18.0% 8,067 Mifflin 2,644 0.34% 20.1% 3,722 Monroe 3,775 0.49% 8.8% 4,928 Montgomery 44,962 5.85% 10.6% 43,385 Montour 10,134 1.32% 70.0% 490 Northampton 8,451 1.10% 10.0% 12,843 Northumberland 1,903 0.25% 8.1% 4,632 Perry 406 0.05% 7.0% 425 Philadelphia 162,317 21.11% 30.8% 23,651 Pike 341 0.04% 4.5% Schuylkill 3,785 0.49% 9.0% 9,985 Snyder 882 0.11% 7.0% 3,176 Somerset 2,959 0.38% 14.3% 2,698 Sullivan 55 0.01% 4.2% Susquehanna 758 0.10% 10.6% 578 Tioga 1,707 0.22% 15.4% 2,206 Union 3,674 0.48% 28.4% 1,193 Venango 2,291 0.30% 13.4% 4,530 Warren 1,777 0.23% 13.8% 2,397 Washington 7,422 0.97% 10.0% 8,890 Wayne 1,820 0.24% 14.9% 538 Westmoreland 10,767 1.40% 9.3% 17,668 Wyoming 516 0.07% 6.0% 2,447 York 16,864 2.19% 11.3% 31,844 Not attributed 36,511 4.75% Page 7