Employment rises, but so does unemployment

Maryland added more than 2,000 jobs in March, close to the 12 month average for job growth in the state, according to my analysis of figures released today by the Bureau of Labor Statistics. 

However, Maryland's unemployment rate also rose, to 6.6 percent.  This is up one tenth of one percent from February but down half a percent from a year ago.  The unemployment rate rose even though hiring increased because more than 4,000 Marylanders joined or rejoined the labor force. Maryland's unemployment rate continues to be significantly lower than the national rate. The US unemployment rate was last at 6.6 percent in July of 2008.

Employment growth was unevenly distributed across several different industries.  The trade, transportation, and utilities; professional and business services; and leisure and hospitality sectors all saw modest job growth. On the other hand, construction; manufacturing; financial activities; and education and health services all saw modest declines.  Government employment declined the most of any sector, losing 2,700 jobs in March.  Most (2,300) of these public jobs were lost at the state level, according to the Department of Labor, Licensing, and Regulation.

The doomsday budget calls for eliminating at least another 500 state positions, and would doubtless have the effect of forcing many local layoffs as well.  As today's employment numbers demonstrate, such a dramatic cut would have a negative impact on the health of our state economy.