Following three months of relative stability, Maryland’s seasonally adjusted
unemployment rate advanced by 0.4 percentage points over-the-month
to 7.2 percent – its highest level since 1983. Rising unemployment
is not uncommon at this time of year; however, increases of this
magnitude are quite atypical. Nationally, unemployment also rose to
a quarter century high, increasing from 8.9 percent in April to 9.4
percent in May.
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While recent reports show that the pace of economic contraction appears to
be slowing and the downturn in some industries is showing signs of
bottoming out, the general consensus is that labor market conditions
will continue to be affected by a series of ups and downs before
economic equilibrium can be achieved and recovery begins.
May’s unemployment upturn can best be viewed as one of the
economic bumps which are likely to reoccur in the months
ahead.
Nearly 25,000 Marylanders lost their jobs during May – the second largest
one-month employment drop in Maryland since the recession began in
December 2007. While a portion of this decline was absorbed by the
exodus of workers from the job market, the statewide unemployment
rolls expanded by just over 12,800 persons to reach a level of
212,494 in May. A year ago unemployment stood at 122,836, or 4.1
percent of the labor force.
Maryland’s industrial payroll activity provided a glimmer of hope for
jobseekers during May, with hiring resulting in a seasonally
adjusted gain of 2,500 jobs over-the-month. Administrative and
support services, a sector which has consistently declined since
January, headed back up in May, and, along with leisure and
hospitality industries, provided the primary sources of
the monthly upturn. Construction,
while not among the job contributors in May, was little changed in
May – a welcome respite in an industry which has been battered by
the economic downturn, losing an average of 5,000 per month in 2009
alone.
Jobseekers were faced with a challenging market in May. Seasonal opportunities
were fewer and competition was heightened as layoffs and business
closures continued to mount. Non-seasonally adjusted unemployment
rates rose over-the-month in twenty of the state’s twenty-four
local jurisdictions. Dorchester County’s rate climbed higher on
the double-digit scale to reach a statewide high of 11.3 percent in
May. Unemployment rates in both Baltimore City and Washington County also broke the 10.0 percent mark, rising to 10.4 percent and
10.1 percent respectively. Of the three counties reporting
unemployment declines, Worcester’s was the most improved, dropping
by just over 2 full percentage points to 9.4 percent. In Worcester,
the number of employed rose by just over 2,400 persons – an
increase that helped to absorb a seasonal influx of jobseekers and,
at the same time, to lower the number of unemployed.
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