Activity in Maryland’s labor market was relatively low key in June. While
business payrolls declined, the loss was modest compared to monthly
losses reported earlier in the year. The seasonally adjusted
unemployment rate, which rose by 0.4 percentage points to reach 7.2
percent in May, was little changed over-the-month, leveling off at
7.3 percent in June. The movement in Maryland’s unemployment rate
reflected that of the nation which showed unemployment rising by a
like 0.1 percentage point to 9.5 percent in June.
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After adjusting for normal seasonal movements, the monthly survey of
Maryland businesses showed that employers cut their payrolls by an
estimated 1,100 jobs in June. This reduction was, however, a vast
improvement over the average monthly losses of more than 10,000 jobs
reported in the first few months of the year. While a number of
industries contributed to this overall decline, the largest loss, of
3,000 jobs, was reported by businesses providing administrative and
support services. The impact of this and other declines on business
payrolls was, however, diminished by rising job counts in retail
trade, professional, technical and scientific services and in
leisure and hospitality industries. Expansion in leisure and
hospitality was fueled by job gains reported in accommodations and
food services.
While the muted movements in Maryland’s market indicators during June
may be a sign that the recession is, in fact, losing steam, the
economy has a long way to go to regain its footing. The current
jobless rate, the highest rate for the month since 1983, is more
than double the rate of 3.6 percent reported when the recession
began in December 2007 and the downturn has claimed nearly 63,000
jobs from Maryland payrolls.
At the local level, non-seasonally adjusted unemployment rates were
higher in June in each of the state’s jurisdictions with the
exception of Dorchester and Worcester counties where seasonal
activities spurred job creation. Worcester’s rate fell by the
largest margin, from 9.4 percent in May to 7.8 percent in June. The
largest upward movements in unemployment over-the-month were
recorded in Allegany and Somerset counties and in Baltimore City.
Baltimore City’s rate, rising by nearly a full percentage point
topped out at 11.0 percent – the statewide high for June.
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