Friday, October 19, 2012

MD unemployment down to 6.9 percent

BLS released state-level employment figures for September this morning. Maryland's unemployment rate fell for the first time in six months, to 6.9 percent.

More than 11,000 Marylanders joined the ranks of the employed, as state employers added 9,800 jobs. Every industry sector added jobs or was flat, except for financial services which lost 300. The largest gains were in professional and business services (4,100 new jobs) and trade, transportation, and utilities (2,000 new jobs).

Positive employment trends such as those shown here are good news for Marylanders and the state's budget. Increased employment means more income tax and more purchases resulting in sales tax, the two main components of state revenue. It also suggests that demand for social services may decline in the future, if the jobs added pay a living wage. If this trend continues, Maryland will be better positioned to pay for the investments in schools, roads, public safety, parks, and healthcare that make this state great.

Of course, as we highlighted earlier today, if Congress fails to act to avert sequestration or the fiscal cliff Maryland could be back at square one.

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