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The economic free fall continued in February, causing Maryland’s
unemployment rate to rise and industry payrolls to tumble downward.
The statewide seasonally adjusted unemployment rate climbed by 0.5
percentage points over-the-month to a level of 6.7 percent in
February -- marking the thirteenth consecutive month of rising
unemployment. The upturn in Maryland’s rate mirrors that of the
nation where a like increase raised unemployment to 8.1 percent.
The national recession appears to have fully taken root in Maryland’s
labor market, causing unemployment to rise rapidly over the past few
months. The statewide unemployment rate has advanced by nearly two
full percentage points since last October’s level of 4.8 percent.
Since the downturn began in December 2007, the number of employed
has declined by nearly 113,000 persons and the number of unemployed
has risen by just over 93,450 to 200,470, a level surpassing
previous records set in the downturn of the early 1990’s.
Current economic conditions have created a challenging market for jobseekers
and employers alike. According to Maryland’s monthly business
survey, the number of jobs on industry payrolls, following seasonal
adjustment, declined by 6,600. Seven of the state’s ten business
sectors reduced employment levels over-the-month. Nearly 5,500 jobs
were cut from construction payrolls during February, bringing the
total number of jobs in this business sector to its lowest level
since 2000. Professional and business services, an industry which,
up to this point, has remained relatively unscathed during the
current downturn, was the second largest job loser in February. A
monthly job decline of 2,800 was reported, with businesses providing
administrative and support services the most sorely affected.
Over the past year, downsizing by Maryland employers have diminished the
state’s business base by an estimated 52,000 jobs. Construction
and trade have been the hardest hit industries, with combined losses
in these sectors accounting for about nine out of every ten jobs
lost. While recent job losses have taken their toll on the statewide
economy, the depth of the downturn in Maryland’s has not reached
national proportions. Nationally, the pace of job declines since the
onset of the recession in December 2007, estimated at 3.2 percent,
has far outdistanced that of 1.8 percent reported in Maryland.
Seasonal economics, coupled with recessionary job loss, caused employment to
subside and unemployment to rise in February in each of the
state’s local jurisdictions with the exception of Worcester
County. Worcester’s rate, while inching down slightly, remained
the statewide high at 16.5 percent. Some of the largest upward
movements in local unemployment rates, of 0.8 percentage points or
more, occurred in Caroline, Harford and Washington counties.
The impact of the recession is clearly visible at the local level. Upward
unemployment movements in Howard and Montgomery, counties in which
rates are characteristically low, are indicative of the difficulties
facing jobseekers in the current economic climate. Unemployment
rates in these counties rose to 5.2 percent and 5.1 percent,
respectively in February – the highest rates on record in these
jurisdictions.
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