Federal layoffs drag down state employment gains for second month, new numbers show
Maryland added around 4,900 new jobs in April, but labor officials said those gains were dragged down by a loss of 2,600 jobs in the federal workforce in the same month.
The Maryland Department of Labor reports that mass federal layoffs and other actions by the Trump administration are 'tempering the state's overall jobs growth,' according to new data released Wednesday. The federal impact was even sharper in March, when the state's 2,300 new jobs were eclipsed by the loss of 2,700 federal jobs for the month.
'April's report is the second to reflect actions taken by the new federal administration that impact federal employees and contractors, including reductions in force (RIFs), terminations of federal contracts, and grant cancellations,' according to a state Department of Labor press release Wednesday.
And the March and April numbers may not even show the full scope of the problem in the state's federal workforce, the department said.
'The April jobs report does not reflect the most recent RIFs, employees who were placed on administrative leave or who accepted 'buyout' offers and are still being paid, federal employees who selected deferred retirement, or the ongoing tariff situation,' the department statement said.
March was the first month that Trump layoffs began showing up in the state's data.
'Layoffs among federal workers and contractors are impacting every county in Maryland,' Labor Secretary Portia Wu said in written statement Wednesday. 'These workers have dedicated their careers to public service and they are an incredible asset to our state, so it's essential that we do everything that we can to support them.'
The U.S. Department of Labor's Bureau of Labor Statistics reports that Maryland's preliminary unemployment rate rose to 3.1% in April, up slightly from a flat 3% in March.
The Maryland unemployment numbers come as the Trump administration continues its push to bring down federal spending by slashing the federal workforce, among other things. The result is hundreds of thousands of federal workers suddenly without jobs over the last few months – many of whom live in Maryland.
About 269,000 Maryland residents are employed by the federal government, as of late March data. Maryland has the nation's second-largest share of residents who work for the government, trailing only Washington, D.C.
And Maryland has another 225,000 federal contractors – reflecting about 10.5% of the state's total gross domestic product in 2023, according state data. As the Trump administration cuts down on federal spending, some state contractors are also in danger of being on the chopping block.
Wu said in a recent interview that federal unemployment claims are at a 'significantly higher level than what we typically see' and noted that the state has not seen the full scope of impact due to layoffs and other moves in the Trump administration.
She said getting a full scope of the impact on the state is also challenging: Some workers who live in Maryland may file unemployment documents with Washington, D.C., or nearby states, for example. Ongoing lawsuits challenging federal layoffs can also muddy the picture by temporarily ordering jobs restored.
Maryland federal contractor layoffs increase as Trump slashes federal spending
'Many people don't file for unemployment right away,' Wu said. 'With all the litigation, maybe they haven't lost their job yet, or have taken some kind of administrative leave or delayed layoff or a separate situation.'
According to May 10 data, the Maryland Labor Department had received more than 1,600 federal unemployment claims since the start of the Trump administration.
Some of the federal workers who have been laid off are finding refuge in Maryland agencies. A communications official with the Department of Labor reports that since February, 150 former federal workers have landed a job with a Maryland state agency.
'We have a bunch hired in our own agency,' Wu said. 'We know that there are a lot of talented people out there and we're excited to welcome them to state government.'
The labor department is not the only Maryland agency picking up laid-off federal workers. Others include the departments of Health, Human Services, Public Safety and Correctional Services, Education and Information Technology, the Office of the Attorney General and the Comptroller of Maryland.
'They are in a very broad range of roles – from administration and program management to health, IT, and legal fields. This includes experts in specialized and technical positions, such as information systems auditor, GIS (Geographic Information Systems) analyst, natural resources biologist, veterinarian and hydrographic engineer,' according to a labor department official.
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