• The most recent jobs report showed that between August 2025 and September 2025, Maryland lost 9,000 Total Nonfarm jobs.
  • The official unemployment rate for Maryland increased to 3.8 percent.

On November 12, 2025, the longest federal government shutdown in U.S. history ended after an extensive 43 days. The closure caused significant economic and workforce disruptions; the full extent of which is still being assessed.

Due to the lapse of appropriations, the Bureau of Labor Statistics (BLS) did not release its regularly scheduled state jobs report or unemployment figures for September and October. The BLS has confirmed it will not publish an October State Employment and Unemployment news release and cannot retroactively collect these data. Readers can anticipate November’s delayed news release details in our January issue.

In catching up, September’s recently released report from the BLS revealed that Maryland lost 9,000 jobs between August 2025 and September 2025. This was attributed to an increase of 200 Total Private jobs, and a decrease of 9,200 Total Government jobs. As a result, Maryland’s unemployment rate rose by 0.2 percentage points, from 3.6% in August to 3.8% in September.

September declines in Maryland’s Total Nonfarm employment were primarily driven by reductions in Government jobs, including 8,800 in Local Government jobs, and 700 in Federal Government jobs. The Maryland Department of Labor suggests that the drop in Local Government jobs reflects volatility in BLS data collection and processing. The agency further notes that the decrease offsets estimated job gains reported in July 2025, adding that such fluctuations are not uncommon, due to seasonal factors like summer employment transitions within the sector.

Unemployment has gradually increased since March, Maryland has shifted from being amongst states with unemployment rates significantly different from that of the U.S. Maryland now rates as the second lowest unemployment rate in the Mid-Atlantic region following behind Virginia, 3.5, while still outperforming neighboring states (Delaware, 4.5; District of Columbia, 6.2; New Jersey, 5.2; and Pennsylvania, 4.1). Compared to the previous year, Maryland’s 12-month change in unemployment increased by 0.2 percentage points.

The national November BLS Employment report showed modest non-farm payroll growth, adding 64,000 jobs; little changed since April. In November, the unemployment rate increased to 4.6%, with 7.8 million unemployed, both higher than a year ago (4.2% and 7.1 million, respectively). Meanwhile, national labor force participation remained steady at 62.5%, showing little variation throughout the year.

Nationally, federal government employment has continued to decline overall, with 172,000 jobs lost between August and November 2025. In Maryland, federal employment also fell during September, dropping by 700 jobs and bringing the estimated total loss to 14,600 jobs since January. Initial Federal Unemployment Insurance Claims (UCFE) (PDF) in the state have remained elevated since the start of the new administration. Maryland has received 9,956 federal claims since January, though not all were approved or remain active. Between January 19 and December 6, 8,928 UCFE claims were submitted, with 946 still ongoing. Notably, 1,357 initial claims were filed in the week ending October 18 alone. Although claims have returned to normal pace, the shutdown significantly impacted filings, which more than doubled in a month; from 4,349 on October 11 to 8,797 by November 15. For comparison, UCFE claims in 2024 averaged just 122 continuing claims per week, underscoring a surge in recent weeks.

RESI’s Chief Economist Daraius Irani told local news that Maryland’s economic recovery will be slow, with improvement likely to be seen in the first and second quarters of next year. Some losses may become permanent, particularly for restaurants that relied on federal worker patrons during the lunch rush. Irani also noted that federal employees in Maryland are likely to spend less this holiday season, even after receiving back pay, as many may save in anticipation of another potential shutdown in January.

Beyond consumer spending concerns, Maryland faces deeper than expected budget deficits in FY 2026, adding to economic challenges. Economists anticipate significant spending cuts as fiscal constraints tighten. Conversely, consumer spending may see a lift as the Fed lowered rates by another 0.25%, marking the third consecutive rate cut this year and bringing the federal funds rate to levels last seen in Fall 2022.

The Regional Economic Studies Institute (RESI) at Towson University will continue monitoring new federal and state policies and their potential impact on Maryland’s economy. With the situation evolving quickly, stay tuned for updates on employment trends across Maryland, the region, and the nation.