Federal Shifts and Maryland’s Economic Future at #MACoCon

Maryland saw its sharpest one-month drop in federal employment in nearly 30 years this June. As federal job losses mount, Maryland is bracing for broader effects on employment and economic stability.

According to Bureau of Labor Statistics data, Maryland lost a total of 8,500 jobs in June, including a net loss of 2,900 public sector positions. The state lost 3,500 federal government jobs, marking Maryland’s largest single-month drop in federal employment in decades. As a result, the state’s unemployment rate ticked up from 3.2% in May to 3.3% in June.

In a recent Maryland Matters and WTOP News article, an analysis from the Comptroller’s Office underscored the federal government’s central role in Maryland’s economy, contributing over $150 billion annually, including nearly $27 billion in income. Federal jobs account for about 6% of the state’s workforce and 10% of all wages, with an average salary of $126,468.

Maryland’s proximity to Washington, DC, has made it long reliant on the federal workforce as a key economic driver.

From the article:

A recent report from the comptroller’s office called the federal government the state’s “economic engine” and a driver of its employment growth, adding more than $150 billion to the state’s economy in the most recent year for which data was available, including $26.9 billion in income alone.

To help mitigate the effects of federal workforce cuts, Maryland rolled out a short-term loan program to support displaced federal workers. As previously covered by MACo, the Maryland Department of Labor has launched the Federal Emergency Loan Program, offering interest-free loans to former federal workers who are facing financial hardship due to layoffs, closures, or relocations.

Read the full article.

At the 2025 MACo Summer Conference general session, “Navigating Federal Shifts: Opportunities and Challenges for Maryland Communities,” panelists will address challenges around regulatory compliance and protecting state and local interests within shifting federal frameworks.

The 2025 MACo Summer Conference will be held at the Roland Powell Convention Center in Ocean City, MD, from August 13-16. This year’s theme is “Funding the Future: The Evolving Role of Local Government.” More information can be found on our conference website.