June was a tough month for Maryland’s workforce – particularly for those working in the federal government – according to the June 2025 jobs report released by the Maryland Department of Labor.
Citing estimates released by the U.S. Department of Labor’s Bureau of Labor Statistics on Friday, the Maryland Department of Labor said the state’s workforce decreased by 8,500 jobs in June – led by a net loss of 2,900 jobs in the public sector.
An estimated decrease of 3,500 federal government jobs in June is Maryland’s largest single-month drop in that area in nearly 30 years, according to state officials.
The Department of Labor also estimates a reduction of 600 local government jobs and an increase of 1,200 state government jobs based on historical trends.
BLS estimated that Maryland experienced private sector job losses last month, too. Behind public sector jobs, the industry that saw the second-highest loss in June with an estimated 2,500 job decline was in Accommodation and Food Services. The agency also BLS reported that the state’s unemployment rate rose from 3.2 percent to 3.3 percent in June.
“From February through May, private sector growth in Maryland surpassed federal government job losses,” Maryland Department of Labor said in a statement. “Over the course of 2025, Maryland continues to have a net positive private sector gain of 5,200 jobs.”
The Department of Labor has promoted a number of resources to assist state residents who have been impacted by federal layoffs and other actions, including the public servants resource webpage, unemployment insurance and reemployment support through Maryland’s American Job Centers.
Of all 50 U.S. states and territories, Maryland is home to the second-highest concentration of federal workers behind Washington, D.C.
According to the Department of Labor, the sectors experiencing the largest employment gains in June were: Health Care and Social Assistance (1,200); Private Educational Services (900); Administrative and Support and Waste Management (600); and Manufacturing (400).
Conversely, the sectors with the largest estimated job losses last month, in addition to the government, were: Accommodation and Food Services (-2,500); Construction (-2,400); Professional, Scientific, and Technical Services (-1,700); and Real Estate and Rental and Leasing (-700).
