Maryland Leads Nation in Federal Job Losses with 15,100 Positions Cut Since January

Maryland lost another 2,500 federal jobs in August, marking the second consecutive month the state has led the nation in federal job losses according to data released by the Maryland Department of Labor. The August numbers brought the total federal job losses in the state to 15,100 since January 2025, when President Donald Trump took office and began his campaign to reduce the federal workforce. This year-to-date total also represents the highest in the United States.

Maryland's economy demonstrates significant dependence on federal employment, with an estimated 269,000 state residents employed by the federal government in 2023 according to a report by the state's Labor Department. The August job numbers, which count positions located within the state, indicate Maryland has lost nearly 10% of its federal jobs since the beginning of the year.

Jake Pannell, a national business representative for the National Federation of Federal Employees, expressed concern about the regional impact, noting that many former workers have been forced to leave the area. He highlighted the challenge of finding private-sector employment for workers with specialized federal skillsets, stating that many are overqualified for available positions and face significant pay reductions or require retraining for jobs they already master.

The job losses are expected to continue when September numbers are released. As part of the workforce reduction initiative, federal employees were offered a deferred resignation option on January 28 that provided pay and benefits through September 30. The Office of Personnel Management anticipates "workforce-wide" declines will appear in job loss data through the end of the year as these positions are formally eliminated.

In response to the layoffs, lawmakers created an emergency short-term loan program for affected federal workers, while the Labor Department established a page for former feds seeking employment that includes job recruiting events and career workshops. However, Pannell noted that many state resources, including unemployment insurance, are federally funded and face potential cuts themselves.

The federal job reductions directly contributed to an overall loss of 3,200 jobs in Maryland for August, driving the state's unemployment rate from 3.4% in July to 3.6% in August. Despite this increase, Maryland's unemployment rate remained below the national average of 4.3% for the month.

The federal workforce reductions began on Trump's first day back in office when the Office of Personnel Management issued a memo directing agencies to identify probationary workers for termination. The cuts continued in February when Trump ordered reductions in force and agency reorganizations aligned with recommendations from the Department of Government Efficiency. Additional measures included ending collective bargaining agreements with some federal labor unions and implementing a hiring freeze extended through mid-October.

Nationwide, approximately 97,000 federal jobs have been eliminated since January 2025 according to a September 5 report by the Bureau of Labor Statistics. The concentration of these losses in Maryland raises significant questions about the economic future for displaced workers in the region and the state's ability to absorb this substantial reduction in its primary employment sector.