The True Effect of the Pandemic on Nonprofit Jobs
I think we knew, but I am not sure we truly understood.
Anyone inside the nonprofit sector new jobs have been an issue over the last several years. Now we have “proof.” The nonprofit sector is facing a sluggish job recovery, lagging behind other industries in rebounding from the workforce disruptions caused by the COVID-19 pandemic. According to a recent report by the Center on Nonprofits, Philanthropy, and Social Enterprise at George Mason University, the sector currently employs one million fewer workers than it did prior to the pandemic. This stark shortfall has significant implications for the delivery of essential services and the well-being of communities that depend on nonprofit support.
During the height of the pandemic, nonprofits faced unprecedented challenges. Many organizations were forced to reduce operations, furlough employees, or shut down entirely due to reduced funding, increased demand for services, and the need to comply with health and safety protocols. While the broader labor market has shown signs of recovery, nonprofits have struggled to keep pace.
Several factors contribute to this slow recovery. First, funding volatility remains a major issue. Nonprofits often rely on grants, donations, and government contracts, many of which were disrupted or delayed during the pandemic. The uncertainty surrounding future funding continues to inhibit organizations from rehiring staff or expanding their operations.
Second, the nature of nonprofit work presents unique recruitment challenges. Nonprofit roles often require specialized skills and a passion for mission-driven work, which limits the pool of eligible candidates. Moreover, nonprofit salaries tend to be lower than those in the private sector, making it difficult to attract and retain talent in a highly competitive labor market.
Third, burnout and turnover have intensified since the pandemic. Frontline workers in health, social services, and education faced high stress and emotional strain during the crisis. Many have since left the field or transitioned to sectors offering higher pay, better benefits, and improved working conditions.
To address this persistent workforce gap, nonprofit leaders are exploring creative solutions. Some organizations are prioritizing wage increases, offering flexible work arrangements, and enhancing professional development opportunities. Others are advocating for increased government support and philanthropic investment to stabilize the sector’s financial foundation.
The one-million-job shortfall serves as a wake-up call for stakeholders across the nonprofit ecosystem. Without a concerted effort to rebuild this vital workforce, nonprofits will face continued capacity constraints, limiting their ability to meet growing community needs. For policymakers, funders, and nonprofit leaders alike, addressing this issue must remain a top priority in the years ahead…and we may still not make up that many jobs for five years or more.
Now maybe we can understand.
