BALTIMORE, MD—Maryland added 2,900 jobs in May 2025, driven by private sector growth despite significant losses in the federal workforce, according to new estimates released Tuesday by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS).
The state’s private sector saw an increase of 4,700 jobs in May. However, this gain was partially offset by a net decrease of 1,800 jobs in the public sector, primarily due to a loss of 3,200 federal government positions. The May jobs report does not fully reflect recent reductions in force, employees on administrative leave, or those who accepted buyout offers and are still receiving pay, or federal employees who chose deferred retirement.
Maryland’s federal workforce is a critical component of its economy, with the state having the second-highest concentration of federal workers in the nation, trailing only Washington, D.C. In response to these layoffs, Maryland continues to offer support resources for impacted residents.
The Maryland Department of Labor maintains a “public servants resource webpage” as a central hub for information and assistance for affected workers and their families. Additionally, a dedicated webpage for federal workers and contractors provides details on unemployment insurance benefits, career guidance, reemployment support through American Job Centers (AJCs) and the Professional Outplacement Assistance Center (POAC), and the new Federal Worker Emergency Loan Program, which launched in early June.
The BLS also reported a slight increase in Maryland’s unemployment rate to 3.2% in May.
The sectors with the largest employment gains in May were:
- Health Care and Social Assistance (1,700 jobs)
- Administrative and Support and Waste Management (1,100 jobs)
- Accommodation and Food Services (900 jobs)
- Arts, Entertainment, and Recreation (800 jobs)
- Wholesale Trade (800 jobs)
Conversely, the sectors experiencing the largest estimated employment losses in May were:
- Government (-1,800 jobs)
- Real Estate and Rental and Leasing (-500 jobs)
- Retail Trade (-500 jobs)
- Private Educational Services (-300 jobs)
- Professional, Scientific, and Technical Services (-300 jobs)
