• The most recent jobs report showed that between December 2024 and February 2025, Maryland gained a total of 9,200 Total Nonfarm jobs.
  • The official unemployment rate for Maryland decreased to 3.0 percent.

According to the most recent report from the Bureau of Labor Statistics (BLS), Maryland gained a total of 9,200 Total Nonfarm jobs between December 2024 and February 2025. This was a result of a gain of 8,300 Total Private jobs, combined with an increase of 900 Total Government jobs. Maryland’s unemployment rate decreased to 3.0 percent over the two-month period.

It must be noted that these figures do not contain the impacts from President Trump’s mass layoffs across the federal workforce. Most of the layoffs that have occurred so far took place during or after the period when BLS collects their data, meaning that those changes are not reflected in the dataset. Additionally, any employees placed on administrative leave will still count as employed until they are officially removed from their positions.

Maryland’s economic future faces significant concerns with the actions of the Trump administration and the Department of Government Efficiency (DOGE) task force led by Elon Musk. This task force’s main objective is to drastically reduce federal spending and eliminate government waste, which could pose a threat to Maryland’s economy. According to the Maryland State of the Economy (2023) report (PDF), the federal government has an “outsized” role in the state’s economy. Recent federal actions threaten the balance of the federal workforce, federal offices, federal grants and contracts, and the overall influence that the federal government plays within Maryland’s economy, and its future economic outlook. Significant job losses are expected as a result of large-scale reductions in the federal workforce, as well as the cancellation of billions of dollars in federal contacts that support work at numerous organizations around the state. This has already resulted in multiple revisions to the expected budget for the next fiscal year, as the state assumes a loss of tax dollars resulting from this employment.

Maryland’s economic future is also threatened by widespread tariffs being imposed by the new administration, with the most recent round of taxes applying to both cars and car parts being imported from overseas and from Canada and Mexico. If those tariffs move forward, they could increase the price of new vehicles by thousands of dollars, as well as reduce the number of cars and parts being imported into the United States. Along with the numerous other tariffs suggested and/or implemented by the administration, this could severely impact operations at the Port of Baltimore, reducing business at the port as fewer goods are shipped into the United States while increasing the overall cost of living for all Marylanders.

At the state level, Maryland is currently in an active legislative session that will continue until April 7, 2025. During recent sessions, legislators are approaching an agreement on a budget for the upcoming fiscal year that closes the expected budget deficit through a combination of $2.3 billion in spending cuts and $1.3 billion in new tax revenue. As of today, the budget has passed the House of Delegates and will now face debate and possible changes in the Senate. Tax increases in the House budget include new or higher taxes on data and IT services, cannabis, sports betting, vending machine purchases, and capital gains for Marylanders making more than $350,000. It also creates two new higher tax brackets for persons making more than $500,000 or $1 million, while increasing the standard deduction for all taxpayers.

RESI will continue to monitor new policies at both the federal and state level and their potential impact on the economy of Maryland. With the situation evolving quickly, stay tuned for more updates on how employment is changing across Maryland, the region, and the country.