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The nonprofit sector is a major employer in Arizona. Nonprofits employ six percent of the workers in the state, a total of 177,540 workers, as shown on the chart below.

Percentage of Employment by Subsector in Arizona
Source: 2012 American Community Survey

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The chart to the right shows the number of employees in the nonprofit sector as compared to major industries in Arizona. Hiring nearly as many workers as the manufacturing industry, nonprofit organizations combined represent the sixth largest job engine in Arizona.

Within major industries in Arizona, nonprofit organizations also provide a relevant share of total employment. The chart below shows that nearly 24 percent of organizations in the Health Care and Social Assistance industries belong to the nonprofit sectors. In the case of Education and Art and Recreation, 9.2 percent and 8.5 percent, respectively, of organizations in the industry are nonprofits.

Nonprofits' Share of Employment for Selected Industries
Source: 2012 American Community Survey

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arizonans employed in nonprofits

Nonprofit Employment Compared to Selected Industries
Source: 2012 American Community Survey

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Note: Nonprofit institutions are not an industry, but a group of organizations making up a sector. The chart above highlights the importance of the nonprofit sector vs. major industries (e.g., retail trade, manufacturing). For this particular chart, employment data in nonprofits has been removed from the selected industries and has been grouped together under a category named 'nonprofit'. On the other hand, the chart on the left shows the share of nonprofits in top selected industries, in this case not removing nonprofits from the corresponding industries, for illustration purposes.

Percentage of Growth in Employment per Sector
As compared to employment in 2008
Source: 2012 American Community Survey
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A Growing Sector

The nonprofit sector continues to demonstrate its contribution to the economy in Arizona, a fact also reflected in its resiliency during the economic downturn of the recent years.

As shown on the chart to the left, the number of workers employed by nonprofits increased by seven percent from 2008 to 2012. On the other hand, the number of workers in the public and private sector went down by six and seven percent respectively in the same period.

During the recession years between 2008 and 2009, employment in the private and government sectors decreased, whereas employment in nonprofits increased by five percent.

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Employment By Gender

The majority of workers in nonprofit organizations based in Arizona are women (63 percent), different from the for-profit sector where 44 percent of employees are female; in the case of government positions, 54 percent of employment was occupied by women in 2012.

The fact that the nonprofit sector is dominated by women spans across the country; however it is relevant to highlight that numbers look very different at leadership positions, particularly for larger organizations. A recent national analysis released by The Chronicle of Philanthropy shows that women hold a small share of leadership jobs at the largest nonprofits: only about 16 percent of US nonprofits with budgets above $50 million had female chief executives in 2011.

Pay levels also show a significantly different behavior in Arizona nonprofit organizations as compared to for-profit or government entities. While the pay gap between male and female employees is over 20 percent in for-profit and government positions in Arizona, in the case of nonprofit organizations the gap is reduced significantly to only 8 percent: that is, median earnings of female nonprofit workers in 2012 were 92 percent of median earnings of male nonprofit workers.

% of Male and Female Employees per Sector

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% of Female Median Earnings/Male Median Earnings
Source: 2012 American Community Survey

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