• The most recent jobs report showed that between July 2025 and August 2025, Maryland lost 3,200 Total Nonfarm jobs.
  • The official unemployment rate for Maryland increased to 3.6 percent.

According to the most recent report from the Bureau of Labor Statistics (BLS), Maryland lost 3,200 total Nonfarm jobs between July 2025 and August 2025. This decline includes a loss of 2,000 Total Private jobs, and 1,200 Total Government jobs. As a result, Maryland’s unemployment rate rose by 0.2 percentage points from 3.4 percent in July to 3.6 percent in August.

Although unemployment has been gradually increasing since March, Maryland was one of three states to report a statistically significant increase in its unemployment rate. Despite this, the state remains among states with unemployment rates lower than that of the U.S., tying for the 15th lowest overall rate in the country alongside Indiana, Minnesota, Tennessee, and Virginia. Maryland now shares the lowest unemployment rate in the Mid-Atlantic region with Virginia, while still outperforming neighboring states (Delaware, 4.3; District of Columbia, 6.0; New Jersey, 5.0; and Pennsylvania, 4.0). Compared to the previous year, Maryland’s 12-month change in unemployment increased by 0.4 percentage points.

Between July and August, Maryland’s Government employment showed modest growth at the State and Local Government employment levels. State Government jobs increased by 600, and Local Government jobs rose by 700. However, this growth was offset by a decline of 2,500 Federal Government jobs, continuing a downward trend in Federal Government employment within the state.

Initial Federal Unemployment Insurance Claims (UCFE) within Maryland have remained elevated since the start of the new federal administration. According to Maryland Department of Labor, Maryland residents have filed 3,300 federal claims since January. While not all these claims were approved or are ongoing. The Department of Labor reports that 2,318 UCFE claims have been filed between January 19 to September 6, 2025, with 644 ongoing claims, and 83 initial claims filed the week ending September 6th. In contrast, UCFE claims in 2024 averaged 122 continuing claims each week. Counties such as Montgomery County, Baltimore County, Baltimore City, and Prince George’s County, are experiencing higher initial claim volumes compared to other Maryland counties. These elevated claims reflect the impacts of federal government layoffs, and disruptions to federal contracts and grants, which continue to significantly affect Maryland employment.

Amid ongoing economic challenges, Maryland is “making big bets on the future” to grow its economy, and drive innovation, says Governor Moore. He recently announced a partnership with Microsoft to launch a quantum research center in University of Maryland’s Discovery District. Moore, who recently announced his gubernatorial re-election campaign, highlighted his economic achievements and expressed hope that this initiative will not only spark discovery, stimulate growth, create jobs, and attract top experts, and private quantum companies to the state.

Meanwhile, hope is on the horizon as the Federal Reserve announced its first interest rate cut since December 2024; a quarter percentage point reduction. In a recent article, Fed Chair Jerome Powell described the timing of the rate cut as a “challenging situation,” given the ongoing struggle to balance inflation and labor market concerns. Although the decision wasn’t unanimous, new projections suggest that most officials anticipate another half- point rate cut by the end of the year. The Fed continues to navigate a delicate balancing act amid competing economic risks and mounting pressures.

RESI will continue to monitor new developments 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.