Maryland’s economy lost 8,500 jobs in June, led by the state’s steepest monthly drop in federal government employment in nearly 30 years, according to new data released Friday by the U.S. Department of Labor’s Bureau of Labor Statistics.
The public sector accounted for the largest share of job losses, losing 2,900 positions. That figure includes an estimated decrease of 3,500 federal jobs — marking Maryland’s most significant one-month decline in federal employment since the mid-1990s.
The public sector total also reflects an estimated loss of 600 local government jobs, partially offset by a gain of 1,200 state jobs, based on historical trends.
“Maryland’s June employment report is simply terrible. Circumstances could deteriorate further.” said Anirban Basu, chairman and CEO of Sage Policy Group, a Baltimore-based economic consultancy. “Deservedly, much attention will be devoted to the loss of federal jobs. But those losses only pertain to agency employment in Maryland. Economic loss also takes the form of job losses at agencies largely located elsewhere, but where many Marylanders work.”
“A recent Supreme Court decision paves the way for mass layoffs at the departments of Health and Human Services and Education. Many more Marylanders stand to lose their positions, which will negatively impact Maryland’s housing market, retail activity, construction, etc.”
Other sectors posting job losses included construction (-2,400 jobs), professional, scientific, and technical services (-1,700), and real estate and rental and leasing (-700).
Despite June’s losses, Maryland’s private sector remains in positive territory for the year, with a net gain of 5,200 jobs through the first half of 2025.
Sectors showing growth in June included health care and social assistance (+1,200 jobs), private educational services (+900), administrative and support and waste management (+600), and manufacturing (+400).
Maryland’s unemployment rate ticked up slightly to 3.3%, from 3.2% in May, according to BLS data.
“While Maryland’s private sector had previously offset federal losses with steady growth earlier this year, June brought a reversal,” Basu said. “The state’s private employers cut jobs in several key areas, most notably in accommodation and food services, which lost an estimated 2,500 positions, making it the hardest-hit private sector industry last month.”
State officials acknowledged the significance of the federal job cuts, noting Maryland’s workforce includes the second-highest concentration of federal employees in the country, trailing only Washington, D.C.
In response, the state is continuing to provide targeted support for those affected.
The Maryland Department of Labor has maintained a central online resource hub for public servants impacted by federal layoffs and related actions. Additionally, unemployed workers across both public and private sectors can access reemployment assistance, job training, and benefits through Maryland’s network of American Job Centers.
Basu said Maryland Gov. Wes Moore’s administration will likely point to federal jobs losses as the reason for the state’s “economic malaise.” However, construction, portions of the supply chain, professional services, hospitality, financial services and information also lost jobs, Basu said
“Many of these segments have lost employment on a year-ago basis. Maryland’s economy is being completely mismanaged,” Basu said. “After 52 years, the State lost its universal AAA bond rating. Recent tax increases and spending cuts, including to higher education, render the state even less attractive and competitive in terms of attracting private investment.
“The FBI is not coming to Greenbelt and one of our greatest companies, T. Rowe Price, just announced layoffs.”
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