Maryland thrives with 900 new private sector jobs as federal employment declines

In July 2025, Maryland observed a positive shift in its job market, achieving a net increase of 900 private-sector jobs. This growth is noteworthy, especially considering the simultaneous loss of 500 federal jobs during the same period. Despite this reduction in federal employment, Maryland's overall employment situation improved, primarily due to a significant uptick of 10,800 new public-sector positions. Within this figure, local government contributed with 10,200 new positions, along with an additional 1,100 roles created at the state level. The overall employment landscape was characterized by diverse sector performances, with notable gains particularly in government (10,800 jobs), private educational services (1,700 jobs), and healthcare and social assistance (1,300 jobs). Other sectors also saw job growth; for instance, the retail trade added 600 positions, while arts, entertainment, and recreation expanded their workforce by 500 roles. However, the economic situation was not without its challenges. The unemployment rate in Maryland experienced a slight uptick, rising from 3.3% in June to 3.4% in July, reflecting the ongoing adjustments within the labor market. Certain sectors faced considerable job losses, especially the transportation, warehousing, and utilities sector, which declined by 1,500 jobs. Further setbacks were evident in administrative support and waste management services, down 1,100 jobs, and the construction industry, which lost 500 jobs. The professional, scientific, and technical services sector also reported a decrease of 300 jobs. The government response to shifting employment trends has included initiatives to retrain laid-off federal workers, particularly focusing on equipping them for careers in education. In March, Governor Wes Moore prompted multiple Maryland agencies, including the Maryland Higher Education Commission and the Department of Labor, to devise a plan aimed at facilitating the transition of displaced federal workers into teaching roles. Currently, over 1,600 teaching positions remain unfilled in the state, highlighting a pressing need for qualified educators. The employment scenario in Maryland represents a complex interplay of various forces, emphasizing the importance of strategic workforce development initiatives, particularly in stabilizing the job market and addressing sectors facing workforce shortages.