On October 1, 2025, the Federal Government announced a shutdown. As a result, the Bureau of Labor Statistics has not released a new jobs report or unemployment figures for September, and no additional data will be published or rescheduled until normal government operations resume. In the meantime, here’s a recap of August’s figures and an overview of how the shutdown is currently affecting Maryland.

  • 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.

As of October 21, 2025, the federal shutdown has entered its 21st day, equal to the second longest shutdown in U.S. history. In comparison, the longest shutdown in U.S. history lasted 35 days, from December 22, 2018 to January 25, 2019. Since 1978, there have been 20 federal shutdowns, which lasted on average eight days. Reports indicate during the last shutdown, the government temporarily withheld $18 billion in spending, including $6 billion in salaries for employees who continued to work, and $3 billion in salaries of furloughed employees.

Maryland’s economy is particularly sensitive to federal disruptions due to its high concentration of federal employment and contract activity. A recent report from the Maryland Comptroller’s Office, highlighted in our May publication, emphasized the importance of federal contributions to the state’s economic stability. Federal employment accounts for roughly 6% of the state’s overall workforce, with approximately 229,000 Maryland residents employed by the federal government. These jobs generate $26.9 billion in annual earnings, representing 10% of total wages statewide.

As of 2024, Maryland was home to more than 148,000 positions located within the state, in addition to supporting a significant share of federal contract workers. According to recent statements from Comptroller Brooke Lierman’s office, the current shutdown could result in a daily loss of upwards to $700,000 in state revenue. The Deputy Comptroller further noted that during the previous shutdown, Maryland experienced an estimated $13.2 million in daily economic losses.

This past year, federal workforce dynamics have shifted significantly nationally and regionally due to workforce reductions. Our July report cited June as the largest single-month decline in federal employment in Maryland in nearly three decades, with an estimated 12,700 jobs lost since the inauguration of the second Trump administration.

Initial Federal Unemployment Insurance Claims (UCFE)  within Maryland have remained elevated since the start of the new federal administration. Residents have filed 6,491 federal claims since January; while not all claims were approved or are ongoing. Between January 19 and October 11, 2,318-UCFE claims were submitted, with 1,080 currently ongoing. Notably, 1,167 initial claims were filed within the week ending October 11 alone. In comparison, UCFE claims in 2024 averaged just 122 continuing claims per week, underscoring a nearly tenfold increase in initial claims filed by Maryland residents in recent weeks.

In response to the shutdown and its potential effects on Maryland residents, the Governor’s office and the Maryland Department of Labor have mobilized resources to provide support. These include guidance on filing for unemployment insurance, access to housing and utility assistance, and information on loan programs and financial assistance. The state is working to ensure federal programs such as Medicaid, SNAP, WIC, Head Start and other federally supported services remain accessible to residents, however, are threatened by the federal shutdown.

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.