MD Adds 25,200 Jobs, 2nd-Half Growth Spurt
Maryland’s labor market improved significantly during 2011, as job growth picked up quickly around the middle of the year (see Figure 1). The seasonally adjusted unemployment rate fell from 7.4% to 6.7% and the number of employed persons reached its highest level since early 2009. Sectors leading job growth during the year included health care services, which added 9,800 jobs, and professional, scientific and technical services, which added 6,800 jobs
Maryland’s 2011 labor market shows several encouraging signs of strength. First, second half job growth was very broadly based with every major sector adding jobs except manufacturing (see Figure 2). Second, the number of employed residents rose steadily during the year, ending up nearly 40,000 higher by the end of 2011. This increase helped drive the state’s unemployment rate from 7.4% at the end of 2010 to 6.7% a year later. Third, initial unemployment insurance claims continued to drop in the state, averaging 17% lower in 2011 than in 2009, showing that layoffs had leveled off.
]Leading Maryland job growth during 2011 was the health care services sector, which added a net total of 9,800 health care services jobs for a 3.0% growth rate, tied for seventh in the country (see Figure 3). The professional and technical services sector added 6,800 jobs during the year, the second most among Maryland economic sectors. Together these two sectors accounted for nearly three-quarters of all Maryland jobs added during 2011. While this share seems high, even nationwide these two sectors accounted for just under half the jobs added over the year.
Government added 3,200 jobs over the year, propelled by increased federal hiring. Leisure and hospitality services added 2,900 jobs, mostly due to jobs added in accommodation and food services.
Principal sectors losing jobs during the year included manufacturing and construction. Manufacturing employment fell by 1,800 or 1.6%, mostly due to a decline that started in August. Maryland construction employment rebounded somewhat in June after falling by 6,100 or 4.3% during the first half of the year. By the end of the year, construction was down 3,800 jobs or 2.7%.
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