Federal Job Losses Impact Maryland, Unemployment Rate Rises

According to a press release from the Office of Governor Wes Moore, recent employment data from the Bureau of Labor Statistics indicates a significant downturn in federal employment within Maryland. In October and November of 2025, the state experienced an estimated loss of 10,300 federal jobs. These figures mark the first monthly data reflecting deferred resignations that took effect in October 2025. Since the beginning of 2025, Maryland has seen a total of 24,900 federal positions eliminated, the largest number of any state nationwide. This trend is attributed, in part, to actions by the Trump-Vance Administration, which aimed to reduce the federal workforce by approximately 300,000 positions through layoffs and encouraged resignations. The longest federal government shutdown in history, also overseen by the Trump-Vance Administration, further impacted Maryland’s 269,000 federal employees.

The economic implications for Maryland are substantial. The federal government is a major source of revenue for the state, contributing over $150 billion annually through wages, retirement income, contracts, grants, and direct spending. Federal employees in Maryland, excluding active-duty military personnel, earn a combined total of $26.9 billion each year. These federal jobs constitute 6% of Maryland’s total employment and account for 10% of the state’s overall wages. The recent federal job losses have contributed to an increase in Maryland’s unemployment rate, which rose from 3.8% in September to 4.2% in November 2025. Despite this increase, Maryland’s unemployment rate remains below the national average of 4.6%.

In contrast to the federal sector, Maryland’s private sector and state and local government employment have shown positive growth under the Moore-Miller Administration, adding 94,000 jobs. Employment growth in these sectors has outpaced national growth rates, with Maryland experiencing a 3.6% increase compared to the national 3.2%. The health care sector has been a particularly strong performer, adding 1,400 jobs in October-November 2025, 12,300 jobs over the past year, and 51,200 jobs since the Moore-Miller Administration took office. Other sectors showing notable job gains during October and November include private educational services, professional, scientific, and technical services, wholesale trade, and accommodation and food services. Conversely, significant job losses were also seen in government (federal, state, and local combined), administrative and support services, transportation and warehousing, retail trade, and arts, entertainment, and recreation.

In response to the federal employment decline, the Moore-Miller Administration is offering a range of support services for affected federal employees, contractors, and other workers. These resources include assistance in finding new employment through 33 American Job Centers and a specialized Professional Outplacement Assistance Center, which provides career guidance, résumé workshops, mock interviews, and job search strategies. Additional support includes information on transitioning to careers in education, a weekly virtual workshop for former federal employees and contractors, and job fairs. Financial assistance is available through the Federal Worker Emergency Loan Program for those facing hardship, along with unemployment insurance and resources for veterans, legal aid, health coverage, housing, and food assistance. Further details and information can be found at response.maryland.gov/federalpublicservants.

Article by Mel Anara, based upon information from the Office of Governor Wes Moore.

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