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.

MD unemployment rate edged up, but so did manufacturing employment

Maryland's unemployment rate edged up one tenth of one percentage point in April, to 6.7 percent.  This is still down from a year ago, when the unemployment rate was 7.1 percent.  There were 1,400 more Marylanders in the labor force last month compared to the month before, but 2,500 fewer employed residents. Because the growth in the ranks of the unemployed was larger than the growth in the labor force, the bump up in the unemployment rate was likely the result of actual jobs lost rather than merely a larger pool of workers.

In the accompanying survey of establishments, Maryland businesses employed 6,000 fewer individuals in April (the total differs from the unemployment rate figures above because - due to differences in methodology between the two surveys - some of these individuals may work in MD but live out of state, or work more than one job).  The largest decline was in the leisure and hospitality sector (-3,900), followed by the professional and business services sector (-2,200).  The government sector also lost 100 jobs.

More positively, the manufacturing sector added 1,200 jobs in April.  Education and health services - a perennial employment generator for the state - also added 700 employees last month.  Overall, Maryland's employers have added 40,600 new jobs since April of 2011.