• The most recent jobs report showed that between April and May 2025, Maryland lost 8,500 Total Nonfarm jobs.
  • The official unemployment rate for Maryland increased to 3.3 percent.

According to the most recent report from the Bureau of Labor Statistics (BLS), Maryland lost a total of 8,500 Total Nonfarm jobs between May 2025 and June 2025. This was attributed to a decrease of 5,600 Total Private jobs, along with an additional decrease of 2,900 Total Government jobs. As a result, Maryland’s unemployment rate increased slightly from 3.2 percent in May to 3.3 percent in June.

Despite increasing steadily month over month since March, Maryland’s unemployment rate remains the lowest amongst neighboring Mid-Atlantic region states and is tied for the 12th lowest overall in the country. Maryland’s 12-month change in unemployment rose 0.2 percent from the year prior.

Federal government employment continued to decline in June. Notably, Maryland’s Initial Federal Unemployment Insurance Claims (UCFE) (PDF) have shown elevated federal claims filed by residents since the new federal administration began in January. As of July 5, there were a total of 1,359 initial UCFE claims filed, with claim periods ending June 7–July 5 totaling 170. Currently, 354 claims are ongoing. A recent news article underscores the state administration’s goal to prioritize hiring recently laid off federal workers, even amongst the state’s own financial challenges.

In response to recent budget challenges aimed at addressing the states nearly $3 billion deficit, Governor Moore recently implemented a hiring freeze and employee buyouts as an attempt to address the budget shortfall. Governor Moore’s recent Executive Order (PDF), along with communications sent to state employees offered workers a monetary $20K buyout, in addition to $300 for each year of service, through a State Employees’ Voluntary Separation Program.

The program serves as an attempt to implement the required General Fund personnel cost reductions of $121 million, as outlined within the recently enacted Fiscal Year 2026 Budget Bill. State Administration and the General Assembly through the Fiscal Year 2026 Budget are striving to promote “fiscal responsibility” through over $2 billion in targeted cuts, and spending actions.

Maryland’s economic future continues to encounter significant challenges as the state further evaluates the impact of substantial federal government employment and spending on its economy. A recent report from the Comptroller highlighted the importance of federal contributions to Maryland’s economic stability. Notably, the report emphasized that federal employment in Maryland accounts for approximately 6% of the state’s overall workforce, with roughly 229,000 Maryland residents employed by the federal government within the state. Federal jobs further contribute $26.9 billion in annual earnings, representing 10% of overall wages in the state, along with $8.8 billion annually in retirement income for about 153,000 Maryland households.

Federal Spending in Maryland revealed that annually $46.2 billion in Federal contracts were awarded within the state, representing 10% of the state’s Gross Domestic Product (GDP). Federal spending further directs roughly $68.5 billion each year in direct payments to individuals, businesses, and grants to state and local governments, including nonprofit organizations.

Furthermore, federal presence in Maryland contributes to various institutions, and key industries. The once interdependent relationship between Maryland and the federal government is now under strain, prompting the state to further analyze the impacts of Trump administration’s cuts to federal funding and employment. Maryland aims to quantify the impact by exploring opportunities to diversify its economy, with a focus on fostering growth in both emerging and traditional private sector industries within the state.

The Regional Economic Studies Institute (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.