Nonprofits outpace all LI job growth

More jobs were created by Long Island's hospitals, nursing homes and other not-for-profit groups in the past decade than were produced by the economy as a whole, according to a new report.

The 24-page study, from the Long Island Association, found local not-for-profits employed 132,640 workers last year, a gain of 32.4 percent from 2000. In the same period, the region's total workforce only grew 1.3 percent, to 1.2 million.

Although known for paying low wages compared with stock brokerages and law firms, not-for-profits have doubled their payrolls since 2000 to $6.4 billion. More than 82 percent of this money went to health care workers at hospitals, mental health facilities, and substance-abuse treatment centers, among others.

Pearl Kamer, who authored the study as the LIA's chief economist, estimated spending by not-for-profits and their workers generate an additional $4.4 billion in economic activity and 88,511 jobs in other sectors.

"The nonprofit sector constitutes a major share of the Long Island economy," she said. "Nonprofit enterprises also improve the quality of life through the services they provide, particularly in health care."

A key player is the North Shore-Long Island Jewish Health System. Between 2005 and 2010, the system added hospitals and programs. Its local workforce increased nearly 36 percent to 29,244 in the period.

"The aging of the population and numerous other factors are driving significant growth in our clinical programs and in our workforce, which helps strengthen the local economy, and more importantly, allows us to better meet the needs of our patients," said chief executive Michael Dowling.

Still, Kamer and LIA president Kevin Law warned that smaller nonprofits are facing challenges because the recession has diminished funding by governments and private donors. "This isn't a really healthy sector," Kamer said.

She lauded the business training offered to charity executives by Adelphi University and the United Way but said more must be done. She suggested not-for-profits collaborate more and consolidate with like-minded rivals.

"Many nonprofits, most of which provide vital functions, will go out of business, and it will be too late to help them," Kamer said, referring to the weak economic recovery.

The study also found arts groups, such as museums, performing arts companies and dinner theaters, increased employment 50 percent between 2001 and 2008, the most recent available data. Arts entities had 3,210 workers in 2008. The region's total workforce grew by only 1 percent in the same period.

Arts payrolls also soared, up 103 percent to $149.6 million.

Kamer estimated spending by arts groups and their employees generate an additional $116.6 million in economic activity and 1,714 jobs in other industries.

Roger Tilles, chairman of the Long Island Arts Alliance's advisory board, said he had learned in his real-estate development business that "companies are attracted to Long Island by the quality of life here."

The LIA report, last in a series of four, was paid for by Adelphi, United Way, Long Island Community Foundation and Goodwill Industries.