Labor Force and Industry Developments - Maryland Monthly Labor Review - June 2010

Modest Job Gains Continue to Raise Business Payrolls

• Maryland’s economy continues to show signs of stabilizing. According to the monthly establishment survey, the number of seasonally adjusted jobs on industry payrolls rose by 1,600 in June – marking the fourth consecutive month of business expansion.
   
• While the pace of job generation slowed considerably in June, just over 40,000 jobs have been restored to Maryland’s business base since January. This is the largest year-to-date increase since 1996.
   
• Even more noteworthy is the fact that June is the first month in just over two years that the number of jobs on business payrolls has risen above its year ago level.
   
• Private sector payrolls were the primary source of expansion during June. Sizeable gains were reported in leisure and hospitality, professional and business services and construction over-the-month. Within leisure and hospitality, hiring in accommodations and food services spearheaded the advance while, in professional and business services, firms providing scientific and technical services propelled the industry’s forward movement.
   
• Among those industries shedding jobs, declines were relatively consistent with past trends with the exception of those reported in education and health/social services. In the combined health/social services industry, declines in social services diminished the industry’s monthly performance.
   
• While the economy appears to be moving in the right direction, the labor market remains tight, discouraging unsuccessful jobseekers from continuing their search. During June, just over 9,500 jobseekers opted out of the market. This exodus cut just over 4,000 persons from the statewide unemployment rolls and lowered Maryland’s seasonally adjusted unemployment rate from a revised level of 7.3 percent in May to 7.1 percent in June – a rate identical to that of a year ago.
   
• Accelerating the rate of job creation and promoting broad-based industry expansion are just a few of the challenges which need to be addressed in order to encourage sustainable growth and restore economic vitality.

• Employment reductions were reported in all but a few local jurisdictions, declines which caused not-seasonally adjusted unemployment rates to rise in all localities with the exception of Worcester County. Worcester County’s job market movements reflected the seasonal upturn in summer tourism activities, an upturn which helped to increase residential employment and lower unemployment from 9.6% in May to 8.2% in June.
   
• During June, Baltimore City and Somerset County were the most visibly affected by rising jobless rates. Unemployment rates in each of these jurisdictions rose by a full percentage point over-the-month. Baltimore City’s rate rose higher on the double-digit scale to a statewide high of 11.0% in June – a rate doubling Howard County’s low of 5.5%.

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Updated July 23, 2010