Maryland’s economy took a hit in June, shedding 8,500 jobs, including a steep loss of 3,500 federal positions—the state’s largest monthly drop in federal employment in nearly 30 years. According to the Bureau of Labor Statistics, the state’s unemployment rate ticked up from 3.2% in May to 3.3% in June.
Federal jobs are critical to Maryland’s economy. With an estimated 229,000 federal workers, the state ranks third nationally, behind only Virginia and Washington, D.C. These jobs account for roughly 10% of all wages and contribute over $150 billion annually to the state’s economy, according to a state labor report.
While the private sector has seen a net gain of 5,200 jobs this year, continued federal layoffs threaten future growth. Concerns are intensifying with the election of Donald Trump, who has pledged to shrink the federal workforce. Maryland officials estimate up to 29,000 job losses could follow.
Labor Secretary Portia Wu warned that increased unemployment claims could stress the state’s $2 billion insurance fund, which is currently solvent but could dip below federal guidelines by 2026–2027.
To ease financial strain, the state launched a loan program for laid-off federal workers and formed a legislative committee to monitor the impact of reduced federal spending.
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