The Third Largest Workforce: Nonprofits’ Economic Impact

In 2019, John Hopkins University released a report that revealed that nonprofits accounted for one in 10 jobs in the U.S. This means that over 12.3 million people are employed by nonprofits making it the third largest workforce. This is twice as many workers as the nation’s transportation, and finance and insurance industries. It represents 80% more workers than the nation’s construction industry and about 25% more workers than the nation’s professional, scientific and technical services, administrative support and waste management industries, and five and a half times more workers than the nation’s real estate industry and wholesale trade.

As the report states, “They employ millions of people, generate huge wage payments that in turn lead to substantial income and sales tax revenues for state and federal governments, and save governments further costs through programs that reduce the incidence of a wide variety of social ills…” 

As COVID-19 spreads through the U.S., many corporations, foundations and cities are turning to nonprofits to fund them through COVID-19. In last week’s episode of Scaling Impact, you heard from nonprofit leader Raymond Jetson who discussed how he shifted from a traditional nonprofit to a fee-for-service model via government contracting opportunities. These opportunities and more will arise in the wake of COVID-19, and it is our goal to keep you informed. 

Thus, in the coming weeks, we will focus on these opportunities and how nonprofits can access private and public dollars as we move from reactionary relief to recovery.