Groundhog Day: Labor Market Edition

Happy Groundhog Day!  While the groundhog predicted six more weeks of winter this morning, looking at the thermometer lately I have to imagine spring is just around the corner.  

But a groundhog’s shadow isn’t the only news we got this week.  New jobs numbers for Maryland highlight the need to prioritize investment in the building blocks of a strong economy, like quality schools, sound roads and bridges, and safe communities.  

Unemployment declined across Maryland in December, according to encouraging new numbers that the Bureau of Labor Statistics released yesterday.  The unemployment rate dropped in all four regions of the state -- Baltimore-Towson, Cumberland, Hagerstown-Martinsburg, and Salisbury -- compared to one year ago.*  

Metropolitan Unemployment Rate (not seasonally adjusted)	Dec 2010	Dec 2011	Change
Baltimore-Towson MSA	7.4%	6.8%	-0.6
Cumberland MSA	8.7%	8.0%	-0.7
Hagerstown-Martinsburg MSA	9.8%	8.3%	-1.5
Salisbury MSA	9.1%	8.6%	-0.5
Maryland	7.0%	6.5%	-0.5

Unfortunately, that doesn’t mean that the labor market is headed for an early springtime, too.  Economists still see shadows cast by the housing market and Congressional gridlock, among other indicators, and are therefore predicting a continued slow economic recovery.  While the numbers released this week are good news, it is important to remember that these unemployment rates are still significantly higher than they were four years ago and mask local differences because they cover large geographic areas.  In reality, many Maryland communities continue to experience higher unemployment than these numbers suggest.    

Given the sluggish recovery, creating jobs by investing in schools, transportation, housing, public safety, and the environment is more important than ever. As Governor O’Malley emphasized yesterday in his State of the State address, returning Marylanders to work and helping those who are between jobs or otherwise struggling must be a top priority.  The governor’s proposed budget does just that, and the General Assembly should take the same approach.

* BLS uses a Census Bureau geography called “metropolitan statistical areas” (MSAs).  Baltimore-Towson MSA includes Baltimore City and Anne Arundel, Baltimore, Carroll, Harford, Howard, and Queen Anne’s counties.  Cumberland MSA includes Allegany County and Mineral County, WV.  Hagerstown-Martinsburg MSA includes Washington County and Berkeley and Morgan counties, WV.  Salisbury MSA includes Somerset and Wicomico counties.