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Indiana nonprofit employment grows

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Kirsten Grønbjerg

Kirsten Grønbjerg

Nonprofit jobs and wages in Indiana grew between 2005 and 2009, a time when total employment and for-profit employment in the state fell, with nonprofits also narrowing their wage gap with for-profits, a new report says.

Indiana nonprofits accounted for nearly 250,000 paid employees in 2009 and a payroll of nearly $9 billion, or roughly 9 percent of total employees and total payroll for the state, says the study by researchers at Indiana University.

“Nonprofit organizations continue to make significant contributions to the quality of life for Indiana citizens by offering health care, education, job training, access to arts and culture, and opportunities for democratic participating,” says a statement by authors of the report, led by Kirsten A. Grønbjerg, professor at the School of Public and Environmental Affairs at Indiana University and Efroymson Chair in Philanthropy at the university’s Center on Philanthropy.

“They also are a major force in the state’s economy and in the economic health of all the state’s regions,” the statement says.

Nonprofit jobs grew 5.9 percent from 2005 to 2009, a period when total jobs fell by the same percentage and for-profit jobs fell 8.6 percent, says the study, Indiana Nonprofit Employment: 2009 Update.

Growth in nonprofit employment was concentrated in health and education organizations, with jobs declining in arts, culture and recreation; social assistance; and membership associations.

Nonprofit payroll grew 11.2 percent, driven mainly by growth in health-care and education payrolls, outpacing growth in the number of nonprofit jobs, while total payroll in the state fell 7.5 percent.

Average annual wages grew 5.1 percent for nonprofits, adjusted for inflation, while falling 2.7 percent for for-profits.

Nonprofit average annual wages grew 6.7 percent in education, 5.1 percent for membership organizations, and 3.2 percent in health care, while holding steady in social assistance and falling 3.1 percent in arts, entertainment and recreation.

Fifty-four percent of all Indiana nonprofit employees worked in health care in 2009, compared to 13 percent in education, 11 percent in membership associations, 11 percent in social assistance, and 3 percent in the arts.

Average annual pay for employees of Indiana nonprofits total $36,000 in 2009, compared to $39,000 for government employees and $38,300 for for-profit employees.

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