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Health & Fitness

Density of Nonprofits Impacts Unemployment Rate; CT Misses Top 10

More nonprofit organizations in a community help it weather the economic storm, new data reveals.

Communities with better civic health have weathered the recent recession far better – and experienced considerably smaller increases in unemployment – than other communities that faced similar economic circumstances, according to a report by the National Conference on Citizenship (NCoC).  Counties across the nation that were rich in nonprofit organizations lost considerably fewer jobs than the low-nonprofit counties, the study revealed.

A state-by-state analysis by the organization placed Connecticut in the second tier of states in both the density of nonprofit organizations, and social cohesion (interacting with friends and neighbors), the two measures used in the study, released in 2012.  Connecticut ranked between #11 and #20 in each category, just outside the first tier, top-10 states.

For individuals who held jobs in 2008, the odds of becoming unemployed were cut in half if they lived in a community with many nonprofit organizations rather than one with a few nonprofits, even if the two communities were otherwise similar, the study found.  Among the New England states, Maine, Rhode Island and Vermont placed in the top ten.

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Overall, counties with more nonprofits per capita prior to the recession had lower unemployment in 2006. And while almost all of the counties lost jobs during the recession years, the counties with more nonprofits per capita lost fewer jobs between 2006 and 2009. Both patterns remain even when holding education, median income, housing prices, and other economic factors constant, according to the report. 

There’s more to the story at http://ctbythenumbers.info/2013/02/28/nonprofit-density-impacts-unemployment-rate-ct-misses-top-10/ .

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