Maryland’s Unemployment Rate Falls to 3.9 Percent Amid Ongoing Volatility in Federal Job Estimates

BALTIMORE, MD (October 20, 2026) – New labor market estimates released today by the Bureau of Labor Statistics (BLS) suggest that Maryland’s unemployment rate fell by 0.2 percentage points in September to 3.9 percent, below the national average of 4.2 percent. This is the lowest unemployment rate since April 2025. BLS also estimates that Maryland’s labor force participation rate remained at 63.7 percent, well above the national rate of 61.8 percent.

Although BLS estimates that the unemployment rate fell, BLS also estimates that Maryland’s employment fell by 8,800 total nonfarm jobs in September. BLS develops these two estimates through data from two different surveys—gauging the unemployment rate on a survey of Maryland residents and the job numbers on a survey of employers. BLS employer-based job estimates for Maryland and other states have experienced increased volatility (both positive and negative) over the past few months and it is likely that these estimates are impacted by challenges in data collection rather than volatility in employment levels.

Other data sources do not point to this scale of job loss in Maryland. For example, fewer Maryland residents filed unemployment claims in September 2026 than in August 2026. Additionally, the number of claims filed in September 2026 was lower than in September 2024 or September 2025, suggesting that fewer Maryland residents are experiencing job loss.

Amid this period of data volatility, the Maryland Department of Labor will continue to monitor multiple measures to assess national and state employment trends.

The sectors with the largest estimated employment gains in September were: Transportation, Warehousing, and Utilities (700 jobs); Manufacturing (600 jobs); Professional, Scientific, and Technical Services (200 jobs); and Government (200 jobs).

The sectors with the largest estimated employment losses in September were: Health Care and Social Assistance (-2,400 jobs); Accommodation and Food Services (-2,000 jobs); Arts, Entertainment, and Recreation (-1,700 jobs); Administrative and Support and Waste Management and Remediation (-1,500 jobs); and Private Educational Services (-900 jobs).

Note: Data is transferred to the Maryland Department of Labor’s website directly from BLS servers. Our database may be refreshed with a brief lag. For more immediate access to this month's jobs data, please visit the BLS website. Please visit the Maryland Department of Labor's website to view the current employment situation.

-###-

The Maryland Department of Labor strives to create an equitable and inclusive Maryland where all residents have the opportunities and resources to attain financial stability, reach their career potential, and contribute to their communities; where businesses have access to capital and the skilled workforce they need to succeed; where workplaces are safe and well-regulated; and where the economy is resilient and growing. For updates and information, follow MD Labor on LinkedIn, Instagram, Facebook, and visit our website.

MEDIA CONTACT:
Dinah Winnick