Job loss rate much slower rate for MD than the U.S.
In spite of recent stability in Maryland nonfarm payroll job totals, substantial job losses during the second half of last year have left the state with 57,200 fewer jobs (not seasonally adjusted) in June 2009 than a year ago. For Maryland this number of jobs translates to a 2.2 percent rate of loss, substantially lower than the 4.2 percent rate of job loss observed nationwide [Table 3].
Maryland’s rate of job loss has been consistently and significantly slower than the national rate since the third quarter of last year [Figure 3]. The nation enjoyed somewhat faster growth (or slower decline) than Maryland through the third quarter of 2008. After than point, employment declines continued to accelerate both in the state and the nation. However the national rate of job decline accelerated much faster.
Maryland’s lower job loss rate this past year is largely explained by differences in state and national movements in three major industrial sectors. Maryland manufacturing employment has fallen by a significant rate of 4.5 percent the past year (5,800 jobs); however the nation shed manufacturing jobs at the much faster rate of 12.3 percent during the year. Professional & Business Services payroll job totals were off 0.3 percent in June, compared to a year before (1,100 jobs), which was again a much lower rate of loss than that the national rate of 6.9 percent. Finally Maryland added Government sector jobs at a 1.0 percent rate (4,700 jobs), compared to a 0.1 percent rate nationwide [Table 3].
Comparing Maryland industrial sectors to one another [Figure 2], rather than to the nation, shows that the industrial sector gaining the most jobs was once again the combined Education, Health Care & Social Assistance services sector, which added 9,400 jobs. Government added 4,700 jobs during the year, of which 3,400 (almost three-quarters) were added by the federal government and 1,300 were added by state and local government.
The industrial sector that lost the most jobs the past year was the Construction sector, whose 26,200 jobs lost could account for roughly 45 percent of all job losses statewide. Retail Trade was next with 12,700 jobs lost or roughly 22 percent of statewide job losses. The Financial Activities sector was third, losing 10,500 jobs and accounting for another 18 percent of the state’s losses for the year.
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