ILLINOIS NONPROFIT EMPLOYMENT:
AN UPDATE
LESTER M. SALAMON
AND
KEY FINDINGS
1. The charitable nonprofit sector continues to be a major economic force in Illinois, accounting for 1 out of every 13 paid workers (see page 3). 2. The 441,814 charitable nonprofit employees in Illinois earned over $15.8 billion in wages in 2003, or over 6 percent of the state’s total (see page 4). 3. While nonprofit employment in Illinois is primarily concentrated in the Chicago-Naperville-Joliet Metropolitan Statistical Area, it is not restricted to any one region. In fact, the nonprofit sector accounts for a higher share of Illinois’ total private employment in rural areas than in urbanized ones (see pages 4 and 5). 4. Close to three-fifths of all nonprofit jobs in the state are in the health services field (see page 5). 5. Between 1995 and 2003, nonprofit employment in Illinois grew by 11 percent—more than six times the 1.7 percent growth rate achieved by the for-profit sector (see page 6).
STEPHANIE LESSANS GELLER
WITH THE TECHNICAL ASSISTANCE OF
S. WOJCIECH SOKOLOWSKI
MAY 2005
A JOINT PRODUCT OF THE JOHNS HOPKINS C ENTER FOR C IVIL SOCIETY STUDIES
6. Nonprofit job growth was not confined to a few areas of Illinois. Rather, in most regions of the state, nonprofits added jobs at a rate significantly above that of the for-profit sector (see page 7). 7. Nonprofit job growth between 1995 and 2003 was especially strong in the fields of membership, civic, and advocacy organizations, where nonprofit employment grew by 68 percent. In contrast, nonprofit home health providers experienced a 14 percent decline in jobs (see page 8). 8. While nonprofit employment grew significantly in most major fields, for-profit employment often grew faster than nonprofit employment in the fields where both nonprofits and for-profits operate. As a result, nonprofits have lost ground to for-profits in most fields (see pages 8 and 9). 9. On average, overall weekly wages of nonprofit employees are lower than those of for-profit and government workers. But, in industries in which nonprofits and for-profits are both significantly involved, nonprofit average weekly wages generally outpace for-profit wages (see page 10).
AND
THE DONORS FORUM OF CHICAGO
INTRODUCTION
This report presents new information on the size, composition, distribution, and growth of paid employment in the private nonprofit sector in Illinois as of the end of 2003, the latest year for which data are available. The report updates an earlier analysis of private nonprofit employment in Illinois covering 2000, 1 which made clear that the private nonprofit sector is a major economic force in the state. Given the scale of this sector and the contributions it makes to the state, tracking its health and development over time thus becomes especially important. Like the earlier study, this report draws on data generated by the Illinois Department of Labor through its quarterly surveys of Illinois workplaces carried out under the national ES-202 labor market information program administered by the U.S. Bureau of Labor Statistics as part of the unemployment insurance program. These data are compiled from quarterly reports submitted by employers in compliance with U.S. and Illinois law. All nonprofit places of employment with at least four employees are required to complete these quarterly surveys and either be covered by the federal unemployment insurance system or make other arrangements to provide unemployment coverage to laidoff workers. The one major exclusion is religious congregations, which are not required to take part in the unemployment insurance system, although the significance of this exclusion is unknown as some religious organizations nevertheless elect to be covered by unemployment insurance. The data presented in this report may not be fully comparable with those released in our earlier report due to slight changes in methodology. Most significantly, the data in the present report exclude government-owned establishments that are tax-exempt under Section 501(c)(3), and which were included in our earlier report. These organizations employed roughly 8 percent of the reported nonprofit workforce in 2000. For the purpose of this report, we have chosen to focus on the private “charitable” portion of the nonprofit sector. This portion includes organizations registered with the U.S. Internal Revenue Service under Section 501(c)(3) of the Internal Revenue Code, such as private, not-for-profit hospitals, clinics, colleges, universities, elementary schools, social service agencies, child day care centers, orchestras, museums, theaters, environmental organizations, homeless shelters, and many more. The remaining types of nonprofit organizations not included in the “charitable” portion of the nonprofit sector range from nonprofit trade associations, chambers of commerce, and labor unions to homeowners associations, cemetery associations, and credit unions. The exclusion of these types of organizations, many religious congregations, and nonprofits employing fewer than four people means that the nonprofit sector has an even greater impact on Illinois’ economy than shown in this report. For further information on the ES-202 data source, the definition of the nonprofit sector, and the method used here to extract data on nonprofit organizations from the Illinois ES-202 records, see Appendix A.
DETAILED FINDINGS
I. A MAJOR ECONOMIC
FORCE
Figure 1: Nonprofit share of total employment, Illinois vs. the nation
The private nonprofit sector in Illinois, including private hospitals, clinics, colleges, universities, schools, child day care centers, social service providers, museums, theaters, and many more, is a major economic force in the state. Employment: Illinois’ private, nonprofit organizations employed 441,814 paid workers as of the fourth quarter of 2003. This figure represents 7.7 percent of the total Illinois workforce (or 1 out of every 13 workers) and 9.0 percent of total private employment in the state (or roughly 1 out of every 11 private workers). Illinois ranks well above the U.S. average in terms of the nonprofit share of total employment (7.7 percent vs. 6.9 percent) (see Figure 1). As shown in Figure 2, the Illinois nonprofit sector employed: – More than four times as many workers as the state’s food, textile, and apparel manufacturing industry;
9% 8% Percent of total employment 7% 6% 5% 4% 3% 2% 1% 0% Illinois United States 7.7% 6.9%
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
Figure 2: Employment in the Illinois nonprofit sector in comparison to selected Illinois industries, 2003
500 Number of employees (in thousands) 450 400 350 300 250 200 157.8 150 100 50 0
Nonprofit Organizations Metal and Machinery Manufacturing Professional Services Finance and Insurance Construction Transportation Information State Government Food, Textile, and Apparel Manufacturing
441.8 406.3 Nonprofit Industries Government 331.8 312.9 276.8
135.9
125.6 101.7
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
3
–
About three and a half times as many workers as the state government and as the state’s information industry; 2 Close to three times as many workers as the state’s transportation industry; About one and a half times as many workers as the state’s finance and insurance industry and as the construction industry; Close to 10 percent more workers than the state’s metal and machines manufacturing industry. 3
Eighty-eight percent of Illinois’ nonprofit employment is located in the state’s urbanized Metropolitan Statistical Areas (MSAs). This is roughly equivalent to the proportion of all private jobs in these areas.6 – Of this, nearly 80 percent is located in the Chicago-Naperville-Joliet MSA. Cook County, which is part of the Chicago MSA and contains the city of Chicago, has the largest share of Illinois’ nonprofit jobs—nearly a quarter million jobs, or over half of the state’s total.
–
–
–
–
Payroll: The 441,814 nonprofit employees in Illinois earned over $15.8 billion in wages in 2003. 4 Nonprofit organizations thus accounted for 6.4 percent of the state’s total payroll. Nonprofit payrolls exceeded those for: – – – – – Construction ($15.4 billion); Information ($7.4 billion); Transportation ($6.9 billion); State government ($5.9 billion); Food, textile, and apparel manufacturing ($4.4 billion).
However, nonprofit employment is hardly an exclusively metropolitan phenomenon in Illinois. To the contrary: Nine percent of the state’s nonprofit jobs are located in rural regions of Illinois.
Figure 3: Distribution of Illinois nonprofit employment, by region, 2003
Rockford MSA 2.9%
Chicago-Naperville-Joliet MSA 69.6%
Davenport-MolineRock Island MSA 1.4% PeoriaPekin MSA 3.5%
KankakeeBradley MSA 1.0% BloomingtonNormal MSA 0.7% ChampaignUrbana MSA 1.4%
Nonprofit employees pay state income taxes on their earnings and state sales taxes on their purchases. Through the wages they pay, Illinois nonprofits thus contribute significantly to the state’s economy and to the sales and income tax revenues of its government.
Springfield MSA 2.5%
Danville MSA 0.4% Decatur MSA 1.3%
II. REGIONAL PRESENCE
Nonprofit employment is not restricted to any one region in Illinois. Rather, it is distributed broadly throughout the state. Similar to Illinois’ population, most of the state’s nonprofit employment is located in the state’s metropolitan areas (see Figure 3).5
St. Louis MSA 3.6%
Rural Areas 8.9%
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
4
Nonprofits actually account for a higher share of total private employment in rural areas than in urbanized ones (11.0 percent vs. 9.2 percent) (See Figure 4). – In some non-metropolitan areas, nonprofit employment exceeds even this level. Thus, in Iroquois County in Northeast Illinois, and Logan County in Central Illinois, nonprofits account for 18 percent of total private employment. Other rural counties with considerable shares of nonprofit employment include Lee County (17.0 percent) in North Central Illinois; Knox (15.6 percent), Warren (15.1 percent), Fulton (14.7 percent), Adams (14.5 percent) and Morgan (13.8 percent) Counties, all in Central West Illinois; and Marion (14.5 percent), Moultrie (13.6 percent), and Christian (13.1 percent) Counties, all in Central Illinois.
The only urbanized county with a well above-average nonprofit share of private employment is Woodford County in the Peoria MSA (26 percent), though in Cook County within the Chicago MSA, nonprofits account for over 10 percent of private employment, slightly above the average. For a county-by-county breakdown of nonprofit employment, see Appendix B.
–
III. HEALTH DOMINANCE
Health organizations provide the vast majority of Illinois’ nonprofit jobs, but educational and social service organizations also account for significant shares (see Figure 5 and Appendix C). Fifty-six percent of all nonprofit jobs in Illinois (nearly 248,800 jobs) are in health services. Private nonprofit hospitals provide the bulk of these jobs, employing over 40 percent of the state’s nonprofit workforce, or two out of every five nonprofit workers. Health clinics and nursing homes account for a sizeable 16 percent.
Figure 4: Nonprofit employment as a percent of total private employment, by region, 2003
Rockford MSA 10.6%
Chicago-Naperville-Joliet MSA 9.1%
Figure 5: Distribution of Illinois nonprofit employment, by field, 2003
Davenport-MolineRock Island MSA 8.5% PeoriaPekin MSA 10.7%
KankakeeBradley MSA 12.4% BloomingtonNormal MSA 4.4% ChampaignUrbana MSA 9.3%
Membership Organizations 7% Arts and Recreation 3% Social Assistance 12%
Other 3%
Professional Services 3% Educational Services 16% Clinics and Home Health Care 5%
Springfield MSA 14.3% St. Louis MSA 9.6%
Danville MSA 6.9% Decatur MSA 12.1%
Nursing and Residential Care 11%
Rural Areas 11.0%
Hospitals 41%
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
5
Another 16 percent of all nonprofit jobs in Illinois (more than 71,750 jobs) are in educational services, including private elementary and secondary schools, colleges, and universities. Twelve percent of all nonprofit jobs in Illinois (52,325 jobs) are in social assistance. This includes employment in individual and family services, community food services, housing services, child day care, and vocational rehabilitation. Seven percent of all nonprofit jobs are in various membership, civic, and advocacy organizations (more than 32,750 jobs). This includes jobs in religious organizations, grantmaking and giving services,7 advocacy organizations, civic and social organizations, and the charitable arms of various professional associations. As shown in Figure 6, the distribution of nonprofit employment in Illinois is similar to the national pattern, although Illinois has a somewhat larger share of employment in hospitals, colleges and universities, and membership, civic, and advocacy organizations.
IV. A GROWING SECTOR
The nonprofit sector has been a particularly important driver of Illinois’ economy in recent years, adding jobs at a higher rate than the state’s for-profit sector. Overall growth. Between 1995 and 2003, nonprofit employment in Illinois grew by 11 percent, or an average of 1.4 percent per year, adding 43,324 jobs to the state’s total. This was more than six times the 1.7 percent growth rate achieved by the for-profit sector during this period, as shown in Figure 7. With about 8 percent of Illinois’ private employment when this period began, the nonprofit sector thus accounted for an impressive 31 percent of the state’s total private job growth between 1995 and 2003. Regional patterns. Nonprofit job growth was not confined to a few areas of Illinois. Rather, in most regions of the state, nonprofits added jobs at a rate significantly above that of the for-profit sector (see Figure 8).
Figure 6: Distribution of nonprofit employment, Illinois vs. the nation
50% Percent of total nonprofit employment 41% 40% 38% Illinois United States 30%
20% 13% 10% 9% 12%12% 11%11% 7% 4% 0%
Hospitals Colleges and Universities Social Nursing and Membership Other Health Other Assistance Residential Care Organizations Care and Social Educational Assistance Services Professional and Scientific Services Arts and Recreation
5% 6%
4%
5% 3% 2% 3% 3%
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
6
Figure 7: Change in for-profit vs. nonprofit employment in Illinois, 1995-2003
Figure 8: Changes in Illinois nonprofit and for-profit employment by region, 1995-2003
12% 10% 8% 6% 4% 2% 0%
10.9%
ILLINOIS
1.7%
10.9%
Nonprofit
Growth rate
Non-Metropolitan (Rural) Areas Total Metropolitan Areas Total Champaign-Urbana MSA Davenport-MolineRock Island MSA
Nonprofit For-profit
11.3% -2.9% 11.2% 2.9%
For-profit
35.8% 10.5% 27.5% 1.3% 26.2% 22.3% 24.6% 2.5%
1.7%
BloomingtonNormal MSA Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
Peoria MSA
–
Overall, nonprofit job growth in both metropolitan and rural areas was 11 percent, mirroring the state average. In metropolitan areas, nonprofits grew almost four times faster than their for-profit counterparts.
Chicago-NapervilleJoliet MSA
10.9% 2.6% 9.0% -4.3% 4.4% 4.2% 0.7% 6.9% -0.5% -0.2% -15.0% -6.9%
Rockford MSA
–
Springfield MSA
–
In non-metropolitan areas, where for-profit employment actually decreased by nearly 3 percent, the nonprofit sector was the only source of net job growth. Nonprofit job growth was especially robust in the Champaign-Urbana MSA (36 percent), DavenportMoline-Rock Island MSA (28 percent), Bloomington-Normal MSA (26 percent), and Peoria MSA (25 percent). At 11 percent, job growth in the state’s largest MSA, Chicago, also mirrored the state’s average during this period. However, the area’s urban core, Cook County, 8 gained jobs at a slower rate than its surrounding counties. As such, Cook County’s share of nonprofit employment in this region decreased from 77 percent to 74 percent, while the surrounding areas’ share increased from 23 percent to 26 percent. This shift suggests a progressive
IL Section of St. Louis MSA Kankakee-Bradley MSA Danville MSA
-20% -10%
–
0%
10%
20%
30%
40%
–
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
7
suburbanization of nonprofit employment, a trend also evident in other major metropolitan areas. Variations by field. Although overall nonprofit employment grew by 11 percent between 1995 and 2003, certain nonprofit fields exceeded this rate, while some experienced a decline. In particular, as shown in Figure 9: – Nonprofit employment growth was especially strong among membership, civic, and advocacy organizations (68 percent). Other fields that experienced above average nonprofit job growth include arts and recreation (36 percent), colleges and universities (20 percent), elementary and secondary schools (18 percent), and social assistance (14 percent).
–
By contrast, nonprofit professional services and home health providers lost jobs during this period. Professional services experienced a 4 percent decline in jobs, while home health care experienced a 14 percent decline. The considerable loss of jobs in the home health care field may reflect the over-expansions that occurred in this field as a result of an explosion of for-profits in this arena.9
–
Loss of market share. While nonprofit employment grew significantly in most major fields and outdistanced overall for-profit employment growth, in the fields where both nonprofits and for-profits operate, for-profit employment often grew faster than nonprofit employment (see Figure 10). As a result, in most fields, nonprofits lost ground to for-profits over this eight-year period. In particular: – In the hospital field, for-profit employment grew by 155 percent while nonprofit employment grew by only 2 percent. Consequently, the nonprofit share of total private employment in this field decreased by 10 percent (see Figure 11). Less dramatically, but still significantly, the nonprofit share of total private employment decreased by 5 percent in the social assistance field, by 2 percent in the elementary and secondary schools field, and by 1 percent in both the professional services and nursing and residential care fields.
Figure 9: Changes in Illinois nonprofit employment by field, 1995-2003
–
All Nonprofits
11%
Membership Organizations
68%
Arts and Recreation
36%
Colleges and Universities Elementary and Secondary Schools Social Assistance
20%
18%
14%
Nursing and Residential Care
9%
Hospitals
2%
Professional Services
-4%
Home Health Care
-14% 0% 20% 40% 60% 80%
-20%
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
8
Figure 10: Change in employment by field, nonprofit and for-profit sector in Illinois, 1995-2003
180% 160% Percent of change in employment 140% 120% 100% 80% 60% 40% 20% 0% -20% -40%
Arts and Recreation Elementary and Social Assistance Nursing and Secondary Residential Care Schools Hospitals Professional Services Home Health Care
155% Nonprofit For-profit
36% 20% 18% 25% 14%
44% 15% 2% -4% -14% -15%
9%
13%
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
Figure 11: Illinois nonprofits as a percent of total private employment, by field, 1995-2003
100% 90% Percent of total private employment 80% 70% 60% 50%
92% 82% 68% 63% 1995 2003
41% 39% 40% 30% 20% 10% 0% Hospitals Social Assistance
40% 39%
18% 18% 13% 14% 5% 4%
Elementary and Nursing and Secondary Residential Care Schools
Home Health Care
Arts and Recreation
Professional Services
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
9
V. NONPROFIT WAGES
Overall average weekly wages of nonprofit employees are lower than those of for-profit and government employees in Illinois, as elsewhere (see Table 1 for comparisons to other states for which comparative data are available). However, in industries in which nonprofits and for-profits are both significantly involved, average weekly wages of nonprofit employees often exceed those of for-profit workers. At $689, nonprofit average weekly wages are 19 percent below those of for-profit workers. Although nonprofit workers make only 1 percent less than local government workers, they earn almost 25 percent less than state government employees (see Figure 12). Overall averages obscure some significant variations in the average wages of nonprofit workers in different fields, however. Thus, as shown in Figure 13, average nonprofit weekly wages range from a low of $438 in the social assistance field to a high of $798 in the grantmaking and giving services field. As Figure 13 also shows, in the fields where both nonprofits and for-profits are involved, the average weekly wage of the nonprofit workers is actually often higher than that of the for-profit workers. This tendency suggests that the lower overall average wage of nonprofit employees is more a function of the industry mix of nonprofit employment than of nonprofit organizations’ wage levels. In fact, the nonprofit jobs in these industries tend to be better paying. For example: – Nonprofit workers in social assistance earn close to 50 percent more, on average, than their for-profit counterparts; Nonprofit elementary and secondary school employees earn 16 percent more than their counterparts at for-profit establishments; Similarly, in the home health care field, nonprofit salaries average 11 percent more than for-profit ones.
Table 1: Comparison of nonprofit, for-profit, and government average weekly wages
State District of Columbia (2003) Illinois (2003) Maryland (2003) California (2002) Pennsylvania (2003) North Carolina (2003) Ohio (2002) Louisiana (2003) Nonprofit For-Profit Local Government $1107 State Government $1051
$939
$1062
$689
$853
$699
$909
$678
$732
$764
$728
$672
$762
$816
$922
$641
$679
$737
$843
$593
$615
$618
$665
$567
$645
$635
$829
$522
$638
$529
$693
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
Figure 12: Nonprofit, for-profit, and government average weekly wages in Illinois, 2003
$1,000 $900 $800 Average weekly wage $689 $700 $600 $500 $400 $300 $200 $699 $853
$909
–
–
$100 $0 Nonprofit Local Government For-profit State Government
These variations in comparative earnings may be partly a result of a heavier use of part-time workers by forprofit employers, but it is not possible to determine this from the available data.10
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
10
Figure 13: Comparative nonprofit and for-profit average weekly wages in selected service fields in Illinois, 2003
$900 $798 $800 $700 Average weekly wage $600 $500 $400 $300 $300 $200 $100 $0 Grantmaking and Giving Services Hospitals Home Health Care Service Elementary and Secondary Schools Nursing and Residential Care Social Assistance $568 $535 $480 $792 $816 Nonprofit For-profit
$523 $452 $445 $420 $438
Source: Johns Hopkins Nonprofit Employment Data Project based on ES-202 data.
CONCLUSION
Throughout the state of Illinois, nonprofit organizations serve citizens and communities, addressing issues of concern and improving the quality of life. Illinois’ nonprofits range from hospitals to boys and girls clubs, from universities to environmental groups, and from museums and theaters to organizations working with the elderly, veterans, and people with disabilities. This report, like the earlier one covering 2000,11 shows that nonprofits are a major force in the Illinois economy and in the economies of the state’s regions, employing more people than many traditional industries including construction, finance and insurance, transportation, information, and even state government. The Illinois nonprofit sector also ranks above the U.S. average in terms of its share of total payroll. Because nonprofit employees pay state income taxes on their earnings and state sales taxes on their purchases, this translates into significant revenues for the state government. What this report adds to the conclusions of our earlier report is the realization that the nonprofit sector has also been a dynamic force in the state’s economy, adding jobs at a faster rate than the state’s for-profit sector. Between 2000 and the end of 2003, nonprofits added over 18,000 jobs to the state’s economy, an increase of over 4 percent, and this at a time of recession when for-profit jobs decreased by 6 percent. Over the entire eight-year period, 1995 to 2003, nonprofits added over 40,000 jobs to the state’s economy, outpacing the rate of for-profit job growth by six to one. This growth was especially robust in the suburbs, as the need and demand for nonprofit services followed the movement of people to these areas. At the same time, this report also reveals some challenges that may be looming on the nonprofit sector’s horizon. One of these is the growing competition of for-profit firms in traditional nonprofit fields of activity. In a number of key fields, such as hospital care, social assistance, elemen-
11
tary and secondary education, and nursing home care, forprofit growth exceeded nonprofit growth, cutting into the nonprofit “market share.” In addition, the nonprofit sector’s move to the suburbs, while a sign of dynamism, may also be a sign of its need to generate fees to finance its activities as both government and philanthropic support are squeezed. This could spell problems for the sector’s historic role of serving those in greatest need. Finally, this report points out again the relatively low wages available to the front-line workers in our human service industries. While nonprofit wages in these industries often exceed those available from for-profit providers, even the nonprofit wages are well below those common in the public sector and elsewhere in the private sector. This raises important questions about the ability of nonprofits to continue to attract and retain quality workers. All of this demonstrates the need for information of the sort reported here to put the state’s nonprofit sector on the radar screen of state policymakers and to alert leaders within the sector of the important challenges it is facing. Hopefully, this report has usefully served both of these needs.
1Illinois Nonprofit Employment, by Sarah Dewees and Lester M.
Salamon (Illinois: Donors Forum of Chicago and Johns Hopkins Center for Civil Society Studies, September 2001).
2Information includes publishing industries, broadcasting and
telecommunications, information and data processing services, and the motion picture and sound recording industries.
3This category refers to NAICS sector 33 and includes primary
least 50,000 inhabitants and a total MSA population of at least 100,000 inhabitants. The contiguous counties are included in an MSA if, according to certain criteria, they are essentially metropolitan in character and are socially and economically integrated with the central city or cities. For a list of Illinois MSAs and their component counties, see Appendix B.
7Examples of grantmaking and giving services include community
metal manufacturing; fabricated metal product manufacturing; machinery manufacturing; computer and electronic product manufacturing; electrical equipment, appliance, and component manufacturing; transportation equipment manufacturing; and furniture and related product manufacturing.
4All payroll data are annual estimates computed by multiplying
foundations, grantmaking foundations, philanthropic trusts, scholarship trusts, and community chests.
8Cook County is the county that contains Illinois’ largest city,
Chicago.
9National Association for Home Care & Hospice, 2004.
fourth quarter data by 4. Actual annual payrolls may differ slightly due to seasonal variations.
5Due to disclosure limitations, county-by-county data are only avail-
Basic Statistics About Home Care, 2004. Retrieved February 17, 2005 from http://www.nahc.org/NAHC/Research/04HC_stats.pdf.
10The average weekly wage reported in the ES-202 survey data
able for private employers. As such, sections of this report relating to the regional breakdown of employment compare nonprofit employment to private employment rather than to total employment.
6According to the U.S. Office of Management and Budget, an MSA
makes no adjustment for full-time or part-time work. Industries with a greater number of part-time workers could appear to have lower average weekly wages than those with fewer part-time workers even if the actual pay rates were equal.
11Illinois Nonprofit Employment, by Sarah Dewees and Lester M.
is: 1) a county or group of contiguous counties that contains at least one city of 50,000 inhabitants or more, or 2) an urbanized area of at
Salamon (Illinois: Donors Forum of Chicago and Johns Hopkins Center for Civil Society Studies, September 2001).
12
APPENDIX A: THE ES-202 UNEMPLOYMENT INSURANCE LABOR MARKET
INFORMATION PROGRAM
SOURCE OF DATA
The major source of employment and wage data for this report is the Covered Employment and Wages Program, commonly referred to as the ES-202 program, a cooperative initiative involving State Employment Security Agencies and the Bureau of Labor Statistics in the U.S. Department of Labor. The ES-202 program produces a comprehensive tabulation of employment and wage information for workers covered by state Unemployment Insurance (UI) laws and federal workers covered by the Unemployment Compensation for Federal Employees Program. Data contained in this report represent all employees covered by the Unemployment Insurance (UI) Law of Illinois as well as federal workers covered by the Unemployment Compensation of Federal Employees Program. The data on state-insured workers are compiled from quarterly contribution reports submitted by employers subject to Illinois law. Employment data pertaining to the federal government are obtained from similarly required reports submitted by the various government installations in Illinois. than four employees. This may result in some underreporting of nonprofit employment in Illinois, although our previous research indicates that this underreporting is very small—usually less than five percent of total nonprofit employment. The number of employees is measured by the number of filled jobs for the pay period that includes the 12th day of each month as reported by the employer. Both part-time and full-time employees are included in the data set. If a person holds two jobs, that person would be counted twice in the data set. Wages include bonuses, stock options, the cash value of meals and lodging if these are provided by the employer, and tips and other gratuities. The employment data for nonprofit organizations were identified by matching ES-202 files for Illinois with registries of tax-exempt organizations provided by the U.S. Internal Revenue Service. For the purpose of this report, we have chosen to focus on the “charitable” portion of the nonprofit sector. This includes organizations registered with the U.S. Internal Revenue Service under Section 501(c)(3) of the Internal Revenue Code, which embraces private, not-for-profit hospitals, clinics, colleges, universities, elementary schools, social service agencies, child care centers, orchestras, museums, theaters, homeless shelters, soup kitchens, advocacy organizations, and many more. In addition to Section 501(c)(3), the Internal Revenue Code contains 25 other subsections under which organizations can claim exemption from federal income taxation as nonprofit organizations. Section 501(c)(3) is the one that covers the bulk of nonprofit organizations and the one with the organizations most commonly associated with the nonprofit sector by the general public.
SCOPE
OF COVERAGE
The ES-202 program accounts for approximately 98 percent of all wage and salary civilian employment nationally (the program does not cover self-employed and family workers). The principal exclusions from the ES-202 data set are employees of religious organizations, railroad workers, small-scale agriculture, domestic service, crew members on small vessels, state and local government elected officials, and insurance and real estate agents who receive payment solely by commission. In terms of nonprofit employment, the exclusion of religious organizations is the most significant; however, religious organizations may elect to be covered by the UI program and those that do are covered in the data. At this time, the level of noncoverage of employment in religious organizations is unknown. Under federal law, all nonprofit places of employment with four or more employees are required to participate in the unemployment insurance system. At their discretion, states can extend this requirement to nonprofit places of employment with one or more employees. Illinois has chosen not to extend coverage to nonprofit organizations with fewer
13
APPENDIX B: NONPROFIT EMPLOYMENT IN ILLINOIS, BY SUB-REGION AND COUNTY, IN COMPARISON TO TOTAL PRIVATE EMPLOYMENT, 2003
Nonprofit employment 501(c)(3) Total private employment Nonprofit employment as a percent of total private employment
Region Metropolitan Areas
County
Bloomington-Normal MSA Champaign-Urbana MSA
McLean Total Champaign Ford Piatt Total Cook DeKalb DuPage Grundy Kane Kendall Lake McHenry Will Total Vermilion Total
3,253 3,253 6,191 D D 6,191 228,249 2,055 31,693 D 15,594 D 15,693 5,177 9,089 307,550 1,723 1,723 929 D 5,391 D 6,320 5,529 5,529 4,378 4,378 D 10,616 D 2,168 2,648 15,432 D 13,017 13,017
73,518 73,518 66,569 D D 66,569 2,195,218 24,626 516,184 D 168,819 D 283,314 80,556 128,082 3,396,798 24,991 24,991 10,368 D 63,966 D 74,334 45,723 45,723 35,277 35,277 D 86,109 D 47,414 10,377 143,899 D 122,225 122,225
4.4% 4.4% 9.3% NR NR 9.3% 10.4% 8.3% 6.1% NR 9.2% NR 5.5% 6.4% 7.1% 9.1% 6.9% 6.9% 9.0% NR 8.4% NR 8.5% 12.1% 12.1% 12.4% 12.4% NR 12.3% NR 4.6% 25.5% 10.7% NR 10.6% 10.6%
Chicago-Naperville-Joliet MSA
Danville MSA
Davenport-Moline-Rock Island MSA Henry Mercer Rock Island Scott Total Decatur MSA Macon Total Kankakee Total Marshall Peoria Stark Tazewell Woodford Total Boone Winnebago Total
Kankakee-Bradley MSA
Peoria MSA
Rockford MSA
14
Region IL Section of St. Louis MSA
County Calhoun Clinton Jersey Macoupin Madison Monroe St Clair Total Menard Sangamon Total MSA TOTAL
Nonprofit employment 501(c)(3) D D D 910 6,392 D 8,740 16,042 D 10,943 10,943 388,654
Total private employment D D D 9,706 81,487 D 76,021 167,214 D 76,268 76,268 4,201,826
Nonprofit employment as a percent of total private employment NR NR NR 9.4% 7.8% NR 11.5% 9.6% NR 14.3% 14.3% 9.2%
Springfield MSA
Non-Metropolitan (Rural) Areas Adams Alexander Bond Brown Bureau Carroll Cass Christian Clark Clay Coles Crawford Cumberland De Witt Douglas Edgar Edwards Effingham Fayette Franklin Fulton Gallatin Greene Hamilton Hancock Hardin Henderson Iroquois Jackson Jasper Jefferson Jo Daviess Johnson 4102 D D D 867 D D 1,210 D D 2,096 D D D D 597 D 1,378 488 638 943 D D D D D D 1,219 2,180 D 1,379 209 D 28,221 D D D 9,818 D D 9,259 D D 20,311 D D D D 5,334 D 18,288 4,870 7,505 6,393 D D D D D D 6,765 17,587 D 15,740 7,155 D 14.5% NR NR NR 8.8% NR NR 13.1% NR NR 10.3% NR NR NR NR 11.2% NR 7.5% 10.0% 8.5% 14.7% NR NR NR NR NR NR 18.0% 12.4% NR 8.8% 2.9% NR
15
Region
County Knox La Salle Lawrence Lee Livingston Logan McDonough Marion Mason Massac Monroe Montgomery Morgan Moultrie Ogle Perry Pike Pope Pulaski Putnam Randolph Richland Saline Schuyler Shelby Stephenson Union Wabash Warren Washington Wayne White Whiteside Williamson NON-METROPOLITAN AREA TOTAL
Nonprofit employment 501(c)(3) 2,935 3,335 D 1,719 878 1,303 763 1,736 D D D 736 1,800 443 724 D D D D D D D D D D 2,185 D D 730 D D D 1,537 1,248
Total private employment 18,829 36,547 D 10,138 11,837 7,371 7,289 11,979 D D D 8,115 13,030 3,257 13,419 D D D D D D D D D D 17,244 D D 4,827 D D D 17,553 19,115
Nonprofit employment as a percent of total private employment 15.6% 9.1% NR 17.0% 7.4% 17.7% 10.5% 14.5% NR NR NR 9.1% 13.8% 13.6% 5.4% NR NR NR NR NR NR NR NR NR NR 12.7% NR NR 15.1% NR NR NR 8.8% 6.5%
39,377 441,814
357,796 4,902,966
11.0% 9.0%
GRAND TOTAL FOR STATE*
[D] Data unavailable because of federal restrictions on the disclosure of data that can identify individual employers. The total nonprofit employment in the counties with such disclosure restrictions is 12,686, or 0.26 percent of total private employment. [NR] Not reported due to unavailability of data on nonprofit employment in this county. * Totals may be greater than the sum of individual counties due to the restrictions on the disclosure of data that can identify individual employers.
16
APPENDIX C: DISTRIBUTION OF NONPROFIT EMPLOYMENT IN ILLINOIS, BY INDUSTRY, 2003
NAICS 12 codes 541
Industry
Professional, Scientific, and Technical Services
Types of organizations Legal services; accounting and tax services; computer services; management, scientific and technical consulting services; and research and development services Elementary and secondary schools, junior colleges, colleges, universities, professional schools, and technical and trade schools Outpatient care centers, family planning centers, medical laboratories, and home health care services General medical and surgical hospitals, psychiatric and substance abuse hospitals, specialty hospitals Nursing care facilities; residential mental retardation, mental health, and substance abuse facilities; and elderly community care facilities Individual and family services, youth services, elderly and disabled services, community food services, community housing services, emergency and relief services, vocational rehabilitation services, and child day care services Performing arts companies, museums, historical sites, zoos and botanical gardens, nature parks, recreation centers and facilities Religious organizations, grant making and giving services, social advocacy organizations, professional associations, and civic and social organizations Credit intermediation, visitors bureaus, waste management and remediation services, and others
Number of nonprofit employees 12,696
Percent of total nonprofit employment 2.9%
611
Educational Services
71,768
16.2%
621
Ambulatory Health Care Services
21,958
5.0%
622
Hospitals
179,874
40.7%
623
Nursing and Residential Care Facilities
46,928
10.6%
624
Social Assistance
52,325
11.8%
711, 712, Arts, Entertainment, 713 and Recreation
3,762 6,690 1,844
0.9% 1.5% 0.4%
813
Membership Organizations
32,769
7.4%
All other
Other
11,199
2.5%
441,814
100.0%
12 NAICS codes are based on the North American Industry Classification System (U.S. Office of Management and Budget, 2002).
17